S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    472
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of A. WOERNER, SAYEGH, WILLIAMS, MAGNARELLI, STIRPE,
   R. CARROLL, RIVERA, SIMON, HEVESI, VANEL, DINOWITZ,  HUNTER,  BARRETT,
   SEAWRIGHT, HYNDMAN, BENEDETTO, JACKSON, BURDICK, LUNSFORD, BRAUNSTEIN,
   CLARK,  BRONSON, SIMPSON, RA, K. BROWN, DURSO, KIM, BICHOTTE HERMELYN,
   DeSTEFANO, GIBBS, BORES, RAGA, DE LOS SANTOS, GANDOLFO, EPSTEIN,  LEE,
   SIMONE,  ROSENTHAL,  FORREST, EACHUS, LEVENBERG, MEEKS, PHEFFER AMATO,
   DAVILA, SLATER, TAPIA, WALSH, SHIMSKY, COLTON,  STERN,  REYES,  JONES,
   LUPARDO, WEPRIN, ROZIC, SANTABARBARA, WALKER, COOK, JACOBSON, McMAHON,
   BURKE,  ANDERSON, PEOPLES-STOKES, RAJKUMAR, CRUZ, FALL, TAYLOR, DILAN,
   BUTTENSCHON, CONRAD, MIKULIN,  STECK,  LAVINE,  CUNNINGHAM,  NOVAKHOV,
   ZINERMAN,   SEPTIMO,  ZACCARO,  BENDETT,  ALVAREZ,  CHANDLER-WATERMAN,
   BLUMENCRANZ, McDONOUGH -- read once and referred to the  Committee  on
   Environmental Conservation
 
 AN  ACT  to  amend  the  environmental  conservation law, in relation to
   establishing the "clean fuel standard of 2025"
 
   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.
              

                                                            LBD01966-01-5
 A. 472                              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 2025".
   §  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
 A. 472                              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.
 A. 472                              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.