S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    862
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WOERNER,  THIELE, SAYEGH, WILLIAMS, GRIFFIN,
   EPSTEIN,  ABINANTI,  MAGNARELLI,  COLTON,  STIRPE,  BARRON,   WALLACE,
   CARROLL,  GOTTFRIED,  STECK,  PERRY, STERN, REYES, FAHY, D. ROSENTHAL,
   PAULIN,  PICHARDO,  JONES,  LUPARDO,  QUART,  DE LA ROSA,   O'DONNELL,
   J. RIVERA,  DICKENS,  GLICK,  SIMON,  ZEBROWSKI, HEVESI, L. ROSENTHAL,
   RODRIGUEZ, WEPRIN, ROZIC, SANTABARBARA, WALKER, FRONTUS, COOK,  SOLAG-
   ES,   CUSICK,   OTIS,   VANEL,  DINOWITZ,  HUNTER,  BARRETT,  GUNTHER,
   SEAWRIGHT, GALEF, NIOU, FERNANDEZ, JACOBSON, HYNDMAN, NOLAN,  BENEDET-
   TO,  AUBRY, LAVINE, McMAHON -- Multi-Sponsored by -- M. of A. CYMBROW-
   ITZ -- read once  and  referred  to  the  Committee  on  Environmental
   Conservation
 
 AN  ACT  to  amend  the  environmental  conservation law, in relation to
   establishing the "low carbon fuel standard of 2021"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Short title. This act may be known and may be cited as the
 "low carbon fuel standard of 2021".
   § 2. The environmental conservation law is amended  by  adding  a  new
 section 19-0329 to read as follows:
 § 19-0329. LOW CARBON FUEL STANDARD.
   (1)  A  LOW CARBON FUEL STANDARD IS HEREBY ESTABLISHED. THE LOW CARBON
 FUEL STANDARD IS INTENDED TO REDUCE CARBON INTENSITY  FROM  THE  ON-ROAD
 TRANSPORTATION SECTOR BY TWENTY PERCENT BY TWO THOUSAND THIRTY-TWO, WITH
 FURTHER  REDUCTIONS  TO BE IMPLEMENTED BASED UPON ADVANCES IN TECHNOLOGY
 AS DETERMINED BY THE COMMISSIONER.
   (2) THE LOW CARBON FUEL STANDARD  SHALL  APPLY  TO  ALL  PROVIDERS  OF
 TRANSPORTATION  FUELS  IN  NEW  YORK,  SHALL BE MEASURED ON A FULL FUELS
 LIFECYCLE BASIS AND MAY BE MET THROUGH  MARKET-BASED  METHODS  BY  WHICH
 PROVIDERS EXCEEDING THE PERFORMANCE REQUIRED BY A LOW CARBON FUEL STAND-
 ARD  SHALL  RECEIVE CREDITS THAT MAY BE APPLIED TO FUTURE OBLIGATIONS OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01173-01-1

 A. 862                              2
 
 TRADED TO PROVIDERS NOT  MEETING  THE  LOW  CARBON  FUEL  STANDARD.  FOR
 PURPOSES  OF  THIS SECTION THE TERM "PROVIDERS" SHALL INCLUDE, BUT SHALL
 NOT BE LIMITED TO, ALL REFINERS, BLENDERS,  PRODUCERS  OR  IMPORTERS  OF
 TRANSPORTATION FUELS, "CARBON INTENSITY" MEANS THE QUANTITY OF LIFECYCLE
 GREENHOUSE  GAS EMISSIONS PER UNIT OF FUEL ENERGY, AND "FULL FUELS LIFE-
 CYCLE" MEANS THE AGGREGATE OF GREENHOUSE GAS EMISSIONS, INCLUDING DIRECT
 EMISSIONS AND SIGNIFICANT INDIRECT EMISSIONS, SUCH AS SIGNIFICANT  EMIS-
 SIONS  FROM LAND USE CHANGES AS DETERMINED BY THE COMMISSIONER. THE FULL
 FUELS LIFECYCLE INCLUDES ALL STAGES OF FUEL AND FEEDSTOCK PRODUCTION AND
 DISTRIBUTION,  FROM  FEEDSTOCK  GENERATION  OR  EXTRACTION  THROUGH  THE
 DISTRIBUTION  AND  DELIVERY AND USE OF THE FINISHED FUEL BY THE ULTIMATE
 CONSUMER. IN CALCULATING FULL FUELS LIFECYCLE GREENHOUSE GAS  EMISSIONS,
 THE  MASS  VALUES  FOR  ALL  NON-CARBON-DIOXIDE GREENHOUSE GASES MUST BE
 ADJUSTED TO ACCOUNT FOR THEIR RELATIVE GLOBAL WARMING  POTENTIALS.  THIS
 CONVERSION  SHALL USE THE MOST APPROPRIATE CONVERSION RELATIVE TO GLOBAL
 WARMING POTENTIALS AS DETERMINED BY THE COMMISSIONER.
   (3) WITHIN TWENTY-FOUR MONTHS FOLLOWING ADOPTION  OF  THE  LOW  CARBON
 FUEL STANDARD, THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE
 ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, SHALL PROMULGATE REGULATIONS
 ESTABLISHING A LOW CARBON FUEL STANDARD WITH PERFORMANCE  OBJECTIVES  TO
 IMPLEMENT  SUBDIVISION  ONE  OF  THIS  SECTION.  SUCH REGULATIONS MAY BE
 PHASED INTO EFFECT GIVING  PRIORITY  TO  THE  HEAVY-DUTY  TRANSPORTATION
 SECTOR  CONSISTING  OF VEHICLES WITH THE CLASSIFICATION OF SIX OR HIGHER
 AS CLASSIFIED BY THE FEDERAL HIGHWAY ADMINISTRATION. THE LOW CARBON FUEL
 STANDARD SHALL TAKE INTO CONSIDERATION  THE  LOW  CARBON  FUEL  STANDARD
 ADOPTED  IN CALIFORNIA AND OTHER STATES, MAY RELY UPON THE CARBON INTEN-
 SITY OF VALUES ESTABLISHED FOR TRANSPORTATION FUELS IN SUCH  STATES  AND
 SHALL  INCLUDE  COORDINATION  WITH  OTHER NORTHEASTERN STATES TO PROMOTE
 REGIONAL REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
   (4) THE REGULATIONS ADOPTED PURSUANT TO  THIS  SECTION  SHALL  INCLUDE
 FEES  FOR  THE  REGISTRATION OF PROVIDERS TO OFFSET THE COSTS ASSOCIATED
 WITH IMPLEMENTATION OF THE LOW CARBON FUEL STANDARD.
   (5) WITHIN TWENTY-FOUR MONTHS FOLLOWING THE  ADOPTION  OF  REGULATIONS
 IMPLEMENTING  A  LOW CARBON FUEL STANDARD, THE COMMISSIONER SHALL REPORT
 TO THE LEGISLATURE REGARDING THE  IMPLEMENTATION  OF  THE  PROGRAM,  THE
 REDUCTIONS  IN  GREENHOUSE GAS EMISSIONS THAT HAVE BEEN ACHIEVED THROUGH
 THE LOW CARBON FUEL STANDARD AND TARGETS FOR FUTURE REDUCTIONS IN GREEN-
 HOUSE GAS EMISSIONS FROM THE TRANSPORTATION SECTOR.
   (6) NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM  ENACT-
 ING  OR  MAINTAINING  OTHER  PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS
 FROM THE TRANSPORTATION SECTOR.
   § 3. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  862--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WOERNER,  THIELE, SAYEGH, WILLIAMS, GRIFFIN,
   EPSTEIN, ABINANTI, MAGNARELLI, COLTON, STIRPE, WALLACE, CARROLL, GOTT-
   FRIED, STECK, PERRY, STERN, REYES, FAHY, D. ROSENTHAL, PAULIN,  JONES,
   LUPARDO,  QUART,  O'DONNELL, J. RIVERA, DICKENS, GLICK, SIMON, ZEBROW-
   SKI, HEVESI, L. ROSENTHAL, WEPRIN, ROZIC, SANTABARBARA, WALKER,  FRON-
   TUS,  COOK,  CUSICK,  OTIS, VANEL, DINOWITZ, HUNTER, BARRETT, GUNTHER,
   SEAWRIGHT, GALEF, NIOU, FERNANDEZ, JACOBSON, HYNDMAN, NOLAN,  BENEDET-
   TO,  AUBRY,  LAVINE,  McMAHON,  CYMBROWITZ,  BURKE, JACKSON, McDONALD,
   BURDICK, BARNWELL, ANDERSON, LUNSFORD, BRAUNSTEIN, GALLAGHER,  BURGOS,
   GONZALEZ-ROJAS,  CLARK,  SILLITTI,  SOLAGES,  KELLES,  PEOPLES-STOKES,
   JOYNER, BRONSON, JEAN-PIERRE,  RAJKUMAR,  RAMOS,  SIMPSON,  RA,  CRUZ,
   FALL,  TAYLOR,  BROWN,  DURSO, MONTESANO, LAWLER, DILAN, KIM, SEPTIMO,
   FORREST,  BICHOTTE HERMELYN,  PHEFFER AMATO,  MITAYNES,   BUTTENSCHON,
   DeSTEFANO  -- read once and referred to the Committee on Environmental
   Conservation -- committee discharged, bill amended, ordered  reprinted
   as  amended  and  recommitted  to said committee -- recommitted to the
   Committee on Environmental Conservation in  accordance  with  Assembly
   Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing the "clean fuel standard of 2022"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and declarations:
   1. The transportation sector in New York is a leading source of crite-
 ria pollutants and the leading source of greenhouse gas  emissions  that
 endanger  public  health  and  welfare  by  causing  and contributing to
 increased air  pollution  and  dangerous  climate  change.  Meeting  the
 pollution  reduction requirements of the Climate Leadership and Communi-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01173-04-2
              

 A. 862--B                           2
 
 ties Protection Act will require sharp decreases  in  transportation-re-
 lated emissions.
   2.  Shifting  from  today's  petroleum-based  transportation  fuels to
 alternative fuels has the potential to significantly reduce  transporta-
 tion emissions of air pollutants and greenhouse gases and is recommended
 by the Intergovernmental Panel on Climate Change as an important pathway
 for holding global warming to 1.5 degrees Celsius.
   3.  The  Climate Leadership and Communities Protection Act directs the
 Department of Environmental Protection to  promulgate  regulations  that
 will reduce greenhouse gas emissions, including from on-road vehicles.
   4.  New York signed a 15-state MOU to develop an action plan to reduce
 toxic diesel emissions from medium and heavy-duty vehicles by 2050.
   5.  A  clean  fuels  standard  regulation  would  promote   innovation
 production  and use of non-petroleum fuels that reduce vehicle and fuel-
 related air pollution that  endangers  public  health  and  welfare  and
 disproportionately impacts disadvantaged communities.
   § 2. Short title. This act may be known and may be cited as the "clean
 fuel standard of 2022".
   §  3.  The  environmental  conservation law is amended by adding a new
 section 19-0331 to read as follows:
 § 19-0331. CLEAN FUEL STANDARD.
   (1) A CLEAN FUEL STANDARD IS HEREBY ESTABLISHED. THE CLEAN FUEL STAND-
 ARD IS INTENDED TO REDUCE CARBON INTENSITY FROM THE ON-ROAD  TRANSPORTA-
 TION  SECTOR  BY  TWENTY  PERCENT  BY  TWO THOUSAND THIRTY, WITH FURTHER
 REDUCTIONS TO BE IMPLEMENTED BASED UPON ADVANCES IN  TECHNOLOGY  AND  TO
 SUPPORT  ACHIEVING  THE  GOALS  OF  THE  CLIMATE ACTION PLAN ESTABLISHED
 PURSUANT TO SECTION 75-0103 OF THIS CHAPTER AS DETERMINED BY THE COMMIS-
 SIONER.  AVIATION FUELS SHALL BE EXEMPTED FROM THE CLEAN  FUEL  STANDARD
 DUE TO FEDERAL PREEMPTION, BUT SUSTAINABLE AVIATION FUEL SHALL BE ELIGI-
 BLE TO GENERATE CREDITS ON AN OPT-IN BASIS.
   (2)  THE CLEAN FUEL STANDARD SHALL APPLY TO ALL PROVIDERS OF TRANSPOR-
 TATION FUELS, INCLUDING ELECTRICITY, IN NEW YORK, SHALL BE MEASURED ON A
 FULL FUELS LIFECYCLE BASIS AND MAY BE MET THROUGH  MARKET-BASED  METHODS
 BY  WHICH PROVIDERS EXCEEDING THE PERFORMANCE REQUIRED BY THE CLEAN FUEL
 STANDARD SHALL RECEIVE CREDITS THAT MAY BE APPLIED TO FUTURE OBLIGATIONS
 OR TRADED TO PROVIDERS NOT MEETING THE CLEAN FUEL STANDARD.  THE  GENER-
 ATION  OF  CREDITS  MUST  USE  A  LIFECYCLE  EMISSIONS PERFORMANCE-BASED
 APPROACH THAT IS TECHNOLOGY AND FEEDSTOCK NEUTRAL TO ACHIEVE FUEL DECAR-
 BONIZATION. IN  ADDITION  TO  FUEL  DECARBONIZATION,  CREDITS  GENERATED
 THROUGH  THE  USE  OF  CLEAN FUEL TYPES WILL HELP PROMOTE INNOVATION AND
 INVESTMENT IN SUCH CLEAN FUELS.  FOR PURPOSES OF THIS SECTION  THE  TERM
 "PROVIDERS"  SHALL  INCLUDE,  BUT SHALL NOT BE LIMITED TO, ALL REFINERS,
 BLENDERS, PRODUCERS OR IMPORTERS OF TRANSPORTATION FUELS, OR ENABLERS OF
 ELECTRICITY USED AS TRANSPORTATION FUEL, "CARBON  INTENSITY"  MEANS  THE
 QUANTITY  OF LIFECYCLE GREENHOUSE GAS EMISSIONS PER UNIT OF FUEL ENERGY,
 AND "FULL FUELS LIFECYCLE" MEANS THE AGGREGATE OF GREENHOUSE  GAS  EMIS-
 SIONS,  INCLUDING  DIRECT  EMISSIONS AND SIGNIFICANT INDIRECT EMISSIONS,
 SUCH AS SIGNIFICANT EMISSIONS FROM LAND USE CHANGES AS DETERMINED BY THE
 COMMISSIONER. THE FULL FUELS LIFECYCLE SHALL BE  ASSESSED  ANNUALLY  AND
 ALL  STAGES  OF  FUEL  AND  FEEDSTOCK  PRODUCTION AND DISTRIBUTION, FROM
 FEEDSTOCK GENERATION OR EXTRACTION THROUGH THE DISTRIBUTION AND DELIVERY
 AND USE OF THE FINISHED FUEL BY THE ULTIMATE  CONSUMER.  IN  CALCULATING
 FULL  FUELS  LIFECYCLE GREENHOUSE GAS EMISSIONS, THE MASS VALUES FOR ALL
 NON-CARBON-DIOXIDE GREENHOUSE GASES MUST  BE  ADJUSTED  TO  ACCOUNT  FOR
 THEIR  RELATIVE GLOBAL WARMING POTENTIALS. THIS CONVERSION SHALL USE THE
 A. 862--B                           3
 
 MOST APPROPRIATE CONVERSION RELATIVE TO  GLOBAL  WARMING  POTENTIALS  AS
 DETERMINED BY THE COMMISSIONER BASED ON THE BEST AVAILABLE SCIENCE.
   (3)  WITHIN  TWENTY-FOUR  MONTHS  FOLLOWING ADOPTION OF THE CLEAN FUEL
 STANDARD, THE COMMISSIONER, IN CONSULTATION  WITH  THE  NEW  YORK  STATE
 ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, SHALL PROMULGATE REGULATIONS
 ESTABLISHING A CLEAN FUEL STANDARD WITH PERFORMANCE OBJECTIVES TO IMPLE-
 MENT SUBDIVISION ONE OF THIS SECTION. SUCH  REGULATIONS  MAY  BE  PHASED
 INTO  EFFECT  GIVING  PRIORITY  TO  THE HEAVY-DUTY TRANSPORTATION SECTOR
 CONSISTING OF VEHICLES WITH THE CLASSIFICATION OF SIX OR HIGHER AS CLAS-
 SIFIED BY THE FEDERAL HIGHWAY ADMINISTRATION. THE  CLEAN  FUEL  STANDARD
 SHALL  TAKE  INTO  CONSIDERATION THE LOW CARBON FUEL STANDARD ADOPTED IN
 CALIFORNIA AND OTHER STATES, MAY  RELY  UPON  THE  CARBON  INTENSITY  OF
 VALUES  ESTABLISHED  FOR  TRANSPORTATION  FUELS IN SUCH STATES AND SHALL
 INCLUDE COORDINATION WITH OTHER NORTHEASTERN STATES TO PROMOTE  REGIONAL
 REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
   (4)  THE  REGULATIONS  ADOPTED  PURSUANT TO THIS SECTION SHALL INCLUDE
 FEES FOR THE REGISTRATION OF PROVIDERS TO OFFSET  THE  COSTS  ASSOCIATED
 WITH IMPLEMENTATION OF THE CLEAN FUEL STANDARD.
   (5)  INVESTMENT  OF  FUNDS.  ELECTRIC  UTILITIES,  STATE AGENCIES, AND
 AUTHORITIES, IN CONSULTATION WITH THE CLIMATE JUSTICE WORKING GROUP  AND
 THE  CLIMATE  ACTION  COUNCIL ESTABLISHED PURSUANT TO SECTION 75-0103 OF
 THIS CHAPTER, SHALL, TO  THE EXTENT PRACTICABLE, INVEST OR DIRECT AVAIL-
 ABLE AND RELEVANT PROGRAMMATIC RESOURCES TO  PROVIDE  FORTY  PERCENT  OF
 SUCH  ELECTRIC  UTILITY'S, STATE AGENCY'S, OR AUTHORITY'S OVERALL CREDIT
 VALUE ON ELECTRIFIED TRANSPORTATION PROGRAMS, PROJECTS,  OR  INVESTMENTS
 TO DIRECTLY BENEFIT DISADVANTAGED COMMUNITIES, INCLUDING, BUT NOT LIMIT-
 ED  TO,  ELECTRIFICATION AND BATTERY SWAP PROGRAMS FOR SCHOOL OR TRANSIT
 BUSES; ELECTRIFICATION OF DRAYAGE TRUCKS; INVESTMENT IN PUBLIC  ELECTRIC
 VEHICLE  CHARGING  INFRASTRUCTURE  AND ELECTRIC VEHICLE CHARGING INFRAS-
 TRUCTURE IN MULTI-FAMILY RESIDENCES;  INVESTMENT  IN  ELECTRIC  MOBILITY
 SOLUTIONS  SUCH  AS  ELECTRIC VEHICLE SHARING AND RIDE HAILING PROGRAMS;
 MULTILINGUAL MARKETING, EDUCATION, AND  OUTREACH  DESIGNED  TO  INCREASE
 AWARENESS  AND ADOPTION OF ELECTRIC VEHICLES; AND ADDITIONAL REBATES AND
 INCENTIVES FOR LOW-INCOME INDIVIDUALS BEYOND  EXISTING  LOCAL,  FEDERAL,
 AND STATE REBATES AND INCENTIVES.
   (6)  WITHIN  TWENTY-FOUR  MONTHS FOLLOWING THE ADOPTION OF REGULATIONS
 IMPLEMENTING A CLEAN FUEL STANDARD, THE COMMISSIONER SHALL REPORT TO THE
 LEGISLATURE REGARDING THE IMPLEMENTATION OF THE PROGRAM, THE  REDUCTIONS
 IN  GREENHOUSE  GAS  EMISSIONS THAT HAVE BEEN ACHIEVED THROUGH THE CLEAN
 FUEL STANDARD AND TARGETS FOR FUTURE REDUCTIONS IN GREENHOUSE GAS  EMIS-
 SIONS FROM THE TRANSPORTATION SECTOR.
   (7)  NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM ENACT-
 ING OR MAINTAINING OTHER PROGRAMS TO  REDUCE  GREENHOUSE  GAS  EMISSIONS
 FROM THE TRANSPORTATION SECTOR.
   § 4. This act shall take effect immediately.