S T A T E O F N E W Y O R K
________________________________________________________________________
1292--A
2023-2024 Regular Sessions
I N S E N A T E
January 11, 2023
___________
Introduced by Sens. PARKER, ADDABBO, BAILEY, BRESLIN, BROUK, CHU,
CLEARE, COMRIE, COONEY, FERNANDEZ, GIANARIS, GOUNARDES, HARCKHAM,
HINCHEY, HOYLMAN-SIGAL, JACKSON, KAVANAGH, KRUEGER, LIU, MANNION,
MATTERA, MAY, MAYER, MURRAY, MYRIE, PALUMBO, PERSAUD, RHOADS, ROLISON,
RYAN, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY, TEDIS-
CO, THOMAS, WEIK -- read twice and ordered printed, and when printed
to be committed to the Committee on Environmental Conservation --
recommitted to the Committee on Environmental Conservation in accord-
ance with Senate Rule 6, sec. 8 -- reported favorably from said
committee and committed to the Committee on Finance -- 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 2024"
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 Community
Protection Act will require sharp decreases in transportation-related
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01696-05-4
S. 1292--A 2
3. The Climate Leadership and Community 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 2024".
§ 3. The environmental conservation law is amended by adding a new
section 19-0333 to read as follows:
§ 19-0333. CLEAN FUEL STANDARD.
1. A CLEAN FUEL STANDARD IS HEREBY ESTABLISHED. THE CLEAN FUEL STAND-
ARD IS INTENDED TO REDUCE GREENHOUSE GAS INTENSITY FROM THE ON-ROAD
TRANSPORTATION SECTOR BY TWENTY PERCENT BY TWO THOUSAND THIRTY-TWO. IN
ADVANCE OF TWO THOUSAND THIRTY-TWO AND EVERY FIVE YEARS THEREAFTER, THE
DEPARTMENT SHALL PROMULGATE REGULATIONS DETERMINING THE MINIMUM ADDI-
TIONAL GREENHOUSE GAS INTENSITY REDUCTION TO BE ACHIEVED OVER THE
FOLLOWING FIVE YEARS, WITH FURTHER REDUCTIONS TO BE IMPLEMENTED BASED
UPON ADVANCES IN TECHNOLOGY AND TO SUPPORT ACHIEVING THE REQUIREMENTS OF
THE NEW YORK STATE CLIMATE LEADERSHIP AND COMMUNITY PROTECTION ACT AND
THE GOALS OF THE SCOPING PLAN ESTABLISHED PURSUANT TO SECTION 75-0103 OF
THIS CHAPTER, AS DETERMINED BY THE COMMISSIONER. FUELS WHICH PROVIDE
NET HUMAN HEALTH BENEFITS THROUGH OVERALL AIR QUALITY IMPROVEMENTS RELA-
TIVE TO DIESEL AND GASOLINE USAGE SHALL BE ELIGIBLE. AVIATION FUELS
SHALL BE EXEMPTED FROM THE CLEAN FUEL STANDARD DUE TO FEDERAL
PREEMPTION, BUT SUSTAINABLE AVIATION FUEL SHALL BE ELIGIBLE TO GENERATE
CREDITS ON AN OPT-IN BASIS TO HELP ENCOURAGE DEVELOPMENT OF A VIABLE
SUSTAINABLE AVIATION FUEL MARKET.
2. THE CLEAN FUEL STANDARD SHALL APPLY TO ALL PROVIDERS OF TRANSPORTA-
TION 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 GREENHOUSE
GAS REDUCTIONS. IN ADDITION, THE DEPARTMENT SHALL CONSIDER OTHER ENVI-
RONMENTAL IMPACTS OF FUELS IN DETERMINING CREDITS, INCLUDING BUT NOT
LIMITED TO CROP DISPLACEMENT IMPACTS AND FORMS OF POLLUTION OTHER THAN
GREENHOUSE GAS EMISSIONS, WHETHER OR NOT OCCURRING WITHIN THE UNITED
STATES.
3. 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, "GREENHOUSE GAS INTENSITY" MEANS THE QUANTITY OF
LIFECYCLE GREENHOUSE GAS EMISSIONS PER UNIT OF FUEL ENERGY, AND "FULL
FUELS LIFECYCLE" MEANS THE AGGREGATE GREENHOUSE GAS EMISSIONS, INCLUDING
DIRECT EMISSIONS AND INDIRECT EMISSIONS, SUCH AS EMISSIONS FROM DIRECT
OR INDIRECT LAND USE CHANGES, WHETHER OR NOT SUCH EMISSIONS OCCUR WITHIN
THE UNITED STATES, MEASURED IN CARBON DIOXIDE EQUIVALENTS, AS SUCH TERM
IS DEFINED IN SUBDIVISION TWO OF SECTION 75-0101 OF THIS CHAPTER, WITH
AGGREGATE PER UNIT FUEL ENERGY EMISSIONS DETERMINED BY THE COMMISSIONER
S. 1292--A 3
AFTER CONSIDERATION OF ALL RELEVANT FACTORS, INCLUDING AS CONTEMPLATED
BY SUBDIVISION FOUR OF THIS SECTION.
4. THE FULL FUELS LIFECYCLE SHALL BE ASSESSED ANNUALLY AND SUCH
ASSESSMENT SHALL INCLUDE ALL STAGES OF FUEL AND FEEDSTOCK PRODUCTION AND
DISTRIBUTION, INCLUDING BUT NOT LIMITED TO FEEDSTOCK GENERATION OR
EXTRACTION THROUGH THE DISTRIBUTION, DELIVERY, AND USE OF THE FINISHED
FUEL BY THE ULTIMATE CONSUMER.
5. A. WITHIN TWENTY-FOUR MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION, THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE ENER-
GY 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 SHALL INCLUDE
ESTABLISHMENT OF MEASURES TO LIMIT COSTS AND MAXIMIZE SAVINGS.
B. THE CLEAN FUEL STANDARD SHALL TAKE INTO CONSIDERATION THE LOW
CARBON FUEL STANDARD ADOPTED IN OTHER STATES, AND THE RECOMMENDATIONS OF
THE SCOPING PLAN, AND SHALL INCLUDE COORDINATION WITH OTHER NORTHEASTERN
STATES TO PROMOTE REGIONAL REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
C. IN ADDITION, SUCH REGULATIONS SHALL:
(I) REQUIRE PROVIDERS TO DISCLOSE ALL INFORMATION MATERIAL TO DETER-
MINE THE FULL FUELS LIFECYCLE AND IMPOSE RIGOROUS STANDARDS REGARDING
TRANSPARENCY WITH RESPECT TO INFORMATION RELEVANT TO DETERMINING THE
FULL FUELS LIFECYCLE;
(II) REQUIRE SUCH DISCLOSURE AND TRANSPARENCY IN ORDER TO OBTAIN CRED-
ITS; AND
(III) IMPOSE SIGNIFICANT PENALTIES FOR FAILURE TO DISCLOSE OR REPORT
INFORMATION REQUIRED BY SUCH REGULATIONS OR AS OTHERWISE REQUESTED BY
THE DEPARTMENT.
D. SUCH REGULATIONS SHALL INCLUDE FEES FOR THE REGISTRATION OF PROVID-
ERS TO OFFSET THE COSTS ASSOCIATED WITH IMPLEMENTATION OF THE CLEAN FUEL
STANDARD.
E. SUCH REGULATIONS SHALL ALLOW FOR A DEFERRAL OF THE PROGRAM BASED ON
EMERGENCY OR FORECASTED CONDITIONS.
6. ELECTRIC UTILITIES, STATE AGENCIES, AND AUTHORITIES, IN CONSULTA-
TION WITH THE CLIMATE JUSTICE WORKING GROUP AND THE CLIMATE ACTION COUN-
CIL ESTABLISHED PURSUANT TO SECTION 75-0103 OF THIS CHAPTER, SHALL, TO
THE EXTENT PRACTICABLE, INVEST OR DIRECT AVAILABLE AND RELEVANT PROGRAM-
MATIC 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 LIMITED TO, ELECTRIFICA-
TION AND BATTERY SWAP PROGRAMS FOR SCHOOL OR TRANSIT BUSES; ELECTRIFICA-
TION OF DRAYAGE TRUCKS; INVESTMENT IN PUBLIC ELECTRIC VEHICLE CHARGING
INFRASTRUCTURE AND ELECTRIC VEHICLE CHARGING INFRASTRUCTURE IN MULTI-FA-
MILY RESIDENCES; INVESTMENT IN ELECTRIC MOBILITY SOLUTIONS SUCH AS ELEC-
TRIC 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 INCEN-
TIVES.
7. 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.
S. 1292--A 4
8. NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM ENACTING
OR MAINTAINING OTHER PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS FROM
THE TRANSPORTATION SECTOR.
§ 4. This act shall take effect immediately.
