S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    52
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. ZACCARO, DAVILA -- read once and referred to the
   Committee on Transportation
 
 AN ACT to amend the vehicle and traffic law, in relation  to  a  feebate
   program for medium and heavy duty vehicles

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The vehicle and traffic law is  amended  by  adding  a  new
 article 17-D to read as follows:
 
                               ARTICLE 17-D
            FEEBATE PROGRAM FOR MEDIUM AND HEAVY DUTY VEHICLES
 SECTION 499-E. PURPOSE OF ARTICLE.
         499-F. DEFINITIONS.
         499-G. APPLICATION.
         499-H. CREATION OF FEEBATE PROGRAM.
         499-I. PUBLIC AWARENESS CAMPAIGN.
         499-J. ANNUAL REPORT.
   § 499-E. PURPOSE OF ARTICLE. THERE IS HEREBY CREATED A FEEBATE PROGRAM
 IN WHICH ALL COVERED VEHICLES ARE SUBJECT TO EITHER AN EFFICIENCY FEE OR
 AN  EFFICIENCY  REBATE,  BASED UPON SUCH COVERED VEHICLE'S FUEL ECONOMY.
 SUCH PROGRAM SHALL BE DESIGNED TO BE  REVENUE  NEUTRAL  AND  TO  RESPOND
 DYNAMICALLY TO MARKET TRENDS, ZERO EMISSION OR NEAR ZERO EMISSIONS MODEL
 AVAILABILITY,  ACTUAL  AND  PROJECTED COVERED MOTOR VEHICLE REGISTRATION
 DATA, AND ANY OTHER SUCH FACTOR THE COMMISSIONER DEEMS RELEVANT.
   § 499-F. DEFINITIONS. AS USED IN THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "COVERED VEHICLE" OR "COVERED MOTOR VEHICLE" SHALL MEAN ALL MEDIUM
 AND HEAVY DUTY VEHICLES WITH A GROSS VEHICLE WEIGHT  RATING  OF  GREATER
 THAN  TEN  THOUSAND  POUNDS REGISTERED ON OR AFTER THE EFFECTIVE DATE OF
 THIS SECTION.

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

                                                            LBD00519-01-5
 A. 52                               2
 
   2. "EFFICIENCY FEE" SHALL MEAN A  FEE  LEVIED  UPON  THE  OWNER  OF  A
 COVERED  VEHICLE BASED ON SUCH VEHICLE'S FUEL ECONOMY PURSUANT TO SUBDI-
 VISION TWO OF SECTION FOUR HUNDRED NINETY-NINE-H OF THIS ARTICLE.
   3.  "EFFICIENCY  REBATE"  SHALL  MEAN A REBATE GIVEN TO THE OWNER OF A
 COVERED VEHICLE BASED ON SUCH VEHICLE'S FUEL ECONOMY PURSUANT TO  SUBDI-
 VISION THREE OF SECTION FOUR HUNDRED NINETY-NINE-H OF THIS ARTICLE.
   4.  "FEEBATE PROGRAM" SHALL REFER TO THE SYSTEM OF EFFICIENCY FEES AND
 EFFICIENCY REBATES CREATED IN THIS ARTICLE.
   5. "FUEL ECONOMY" SHALL REFER TO THE NUMBER OF MILES A COVERED VEHICLE
 CAN TRAVEL USING A SPECIFIC AMOUNT OF FUEL OR A COMBINATION OF FUELS, AS
 REFLECTED IN SUCH VEHICLE'S MILES PER GALLON OR MILES PER GALLON  EQUIV-
 ALENT.
   6.  "GROSS  VEHICLE  WEIGHT RATING" SHALL MEAN THE WEIGHT OF A VEHICLE
 CONSISTING OF THE UNLADEN  WEIGHT  AND  THE  MAXIMUM  CARRYING  CAPACITY
 RECOMMENDED BY THE MANUFACTURER OF SUCH VEHICLE.
   7.  "MILES PER GALLON" OR "MPG" SHALL REFER TO THE MEASURE OF DISTANCE
 THAT A COVERED VEHICLE RUNNING ON GASOLINE OR DIESEL FUEL CAN TRAVEL PER
 GALLON OF SUCH FUEL AS RATED BY THE ENVIRONMENTAL PROTECTION AGENCY.
   8. "MILES PER GALLON GASOLINE EQUIVALENT" OR "MPGE" SHALL REFER TO THE
 MEASURE OF DISTANCE THAT A COVERED VEHICLE RUNNING ON  NON-LIQUID  FUELS
 CAN  TRAVEL  PER UNIT OF ENERGY AS RATED BY THE ENVIRONMENTAL PROTECTION
 AGENCY.
   9. "REVENUE NEUTRALITY" OR "REVENUE NEUTRAL" SHALL MEAN  A  GOAL  THAT
 THE EFFICIENCY FEES DESCRIBED IN SUBDIVISION TWO OF SECTION FOUR HUNDRED
 NINETY-NINE-H  OF  THIS ARTICLE COVER THE COST OF THE EFFICIENCY REBATES
 DESCRIBED IN SUBDIVISION THREE OF SUCH SECTION.
   10. "NEAR ZERO EMISSIONS" SHALL MEAN A VEHICLE THAT USES ZERO EMISSION
 TECHNOLOGIES OR TECHNOLOGIES THAT PROVIDE A  PATHWAY  TO  ZERO  EMISSION
 OPERATIONS  OR  THAT  INCORPORATES OTHER TECHNOLOGIES THAT SIGNIFICANTLY
 REDUCE EXHAUST EMISSIONS OF ANY GREENHOUSE GAS, CRITERIA  POLLUTANT,  OR
 PRECURSOR  POLLUTANT  UNDER  ANY  AND ALL POSSIBLE OPERATIONAL MODES AND
 CONDITIONS.
   11. "ZERO EMISSION" SHALL MEAN A VEHICLE POWERED BY MEANS OF A BATTERY
 OR FUEL CELL OR A COMBINATION THEREOF, OR ANOTHER SOURCE OF POWER,  THAT
 PRODUCES  ZERO  EXHAUST EMISSIONS OF ANY GREENHOUSE GAS, CRITERIA POLLU-
 TANT OR PRECURSOR POLLUTANT UNDER ANY AND ALL POSSIBLE OPERATIONAL MODES
 AND CONDITIONS.
   § 499-G. APPLICATION. THIS ARTICLE SHALL APPLY TO ALL COVERED VEHICLES
 REGISTERED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
   § 499-H. CREATION OF FEEBATE PROGRAM. 1. THE COMMISSIONER SHALL EITHER
 LEVY AN EFFICIENCY FEE, AT THE DOLLAR AMOUNT  DESCRIBED  IN  SUBDIVISION
 TWO  OF  THIS  SECTION,  OR  FURNISH AN EFFICIENCY REBATE, AT THE DOLLAR
 AMOUNT DESCRIBED IN SUBDIVISION THREE OF THIS SECTION, UPON  OR  TO  THE
 OWNER  OF EACH COVERED VEHICLE REQUIRED TO REGISTER IN THIS STATE PURSU-
 ANT TO SECTION FOUR HUNDRED ONE OF THIS TITLE AT THE TIME OF SUCH REGIS-
 TRATION.
   2. EFFICIENCY FEES. THE COMMISSIONER SHALL LEVY AN EFFICIENCY  FEE  ON
 EVERY  COVERED VEHICLE THAT RECEIVES LESS THAN 10 MPG OR MPGE IN ACCORD-
 ANCE WITH THE FOLLOWING TABLE:
 
 FUEL ECONOMY IN MPG OR MPGE:       DOLLAR AMOUNT OF EFFICIENCY FEE:
 FEWER THAN 3                       $45,000
 AT LEAST 3 BUT LESS THAN 5         $30,000
 AT LEAST 5 BUT LESS THAN 7         $20,000
 AT LEAST 7 BUT LESS THAN 10        $10,000
 A. 52                               3
 
   3. EFFICIENCY REBATES. THE COMMISSIONER SHALL  FURNISH  AN  EFFICIENCY
 REBATE TO EVERY COVERED VEHICLE THAT RECEIVES AT LEAST 10 MPG OR MPGE IN
 ACCORDANCE WITH THE FOLLOWING TABLE:
 
 FUEL ECONOMY IN MPG OR MPGE:       DOLLAR AMOUNT OF EFFICIENCY REBATE:
 AT LEAST 10 BUT LESS THAN 20       $45,000
 AT LEAST 20 BUT LESS THAN 30       $100,000
 AT LEAST 30                        $150,000
   4.  (A)  THE  COMMISSIONER,  IN  CONSULTATION WITH THE COMMISSIONER OF
 ENVIRONMENTAL CONSERVATION AND THE PRESIDENT OF THE NEW YORK STATE ENER-
 GY RESEARCH AND DEVELOPMENT AUTHORITY, SHALL ANNUALLY REVIEW AND  RECOM-
 MEND ADJUSTMENTS TO THE EFFICIENCY FEES AND REBATES PROVIDED IN SUBDIVI-
 SIONS  TWO  AND  THREE  OF THIS SECTION, RESPECTIVELY, AS NEEDED, TO THE
 LEGISLATURE WITH THE GOAL OF  MAINTAINING  REVENUE  NEUTRALITY  FOR  THE
 PROGRAM.
   (B)  THE  COMMISSIONER MAY EXAMINE ACTUAL COVERED MOTOR VEHICLE REGIS-
 TRATION DATA FOR THE PRIOR FISCAL YEAR, MARKET  AVAILABILITY  AND  PRICE
 POINTS  OF  COVERED  VEHICLES WHICH ARE ZERO EMISSION OR NEAR ZERO EMIS-
 SIONS MODELS, ACTUAL AND PROJECTED FUEL ECONOMIES OF  COVERED  VEHICLES,
 AND ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT FOR THE ADJUSTMENT
 OF  THE  DOLLAR  AMOUNTS OF THE EFFICIENCY FEES AND REBATES SET FORTH IN
 THIS SUBDIVISION.
   (C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION, THE COMMISSIONER MAY USE THE REVENUES COLLECTED FROM THE EFFICIEN-
 CY  FEES DESCRIBED IN SUBDIVISION TWO OF THIS SECTION TO COVER THE COSTS
 OF ADMINISTRATION OF THE FEEBATE PROGRAM AND MAY INCORPORATE SUCH ADMIN-
 ISTRATIVE COSTS INTO THE DESIGN OF THE PROGRAM WHEN RECOMMENDING ADJUST-
 MENTS TO THE EFFICIENCY FEE AND REBATE DOLLAR AMOUNTS.
   5. (A) THE COMMISSIONER SHALL PROMINENTLY DISPLAY THE  DOLLAR  AMOUNTS
 OF  EFFICIENCY FEES AND EFFICIENCY REBATES AND CORRESPONDING FUEL ECONO-
 MIES DESCRIBED IN THIS ARTICLE ON THE  DEPARTMENT'S  WEBSITE  AND  SHALL
 POST A CLEAR AND CONSPICUOUS NOTICE WHENEVER SUCH DOLLAR AMOUNTS OR FUEL
 ECONOMIES ARE CHANGED.
   (B) THE COMMISSIONER SHALL REQUIRE THAT ALL DEALERS REQUIRED TO REGIS-
 TER  WITH  THE  DEPARTMENT  UNDER THE PROVISIONS OF SECTION FOUR HUNDRED
 FIFTEEN OF THIS TITLE PROMINENTLY DISPLAY THE DOLLAR  AMOUNTS  OF  EFFI-
 CIENCY  FEES  AND  EFFICIENCY  REBATES  AND CORRESPONDING FUEL ECONOMIES
 DESCRIBED HEREIN AT SUCH DEALERS' PLACES OF BUSINESS AND ON  SUCH  DEAL-
 ERS' WEBSITES AND SHALL PROMULGATE REGULATIONS TO EFFECTUATE THE SAME.
   §  499-I. PUBLIC AWARENESS CAMPAIGN. THE COMMISSIONER SHALL CONDUCT AN
 EDUCATIONAL CAMPAIGN TO MAKE  COVERED  VEHICLE  MANUFACTURERS,  DEALERS,
 FLEET PURCHASERS, AND THE GENERAL PUBLIC AWARE OF THE PROVISIONS OF THIS
 ARTICLE.  SUCH CAMPAIGN MAY INCLUDE PUBLIC SERVICE ANNOUNCEMENTS, ADVER-
 TISEMENTS, MEDIA CAMPAIGNS, MASS MAILINGS,  CONFERENCES,  PRESENTATIONS,
 INFORMATIONAL  MATERIALS  IN  PRINT,  ELECTRONIC, OR OTHER MEDIA, OR ANY
 OTHER STRATEGY THE COMMISSIONER DEEMS FIT TO INFORM THE  PUBLIC  OF  THE
 FEEBATE  PROGRAM  CREATED  BY  THIS  ARTICLE. SUCH CAMPAIGN MUST INCLUDE
 ASSISTANCE BY A NATURAL PERSON BY PHONE AND/OR EMAIL IN ORDER  TO  FIELD
 INQUIRIES ABOUT SUCH PROGRAM.
   §  499-J. ANNUAL REPORT. 1. NO LATER THAN ONE YEAR AFTER THE EFFECTIVE
 DATE OF THIS SECTION, AND ANNUALLY THEREAFTER,  THE  COMMISSIONER  SHALL
 PREPARE  A  REPORT  ON  THE FEEBATE PROGRAM ESTABLISHED BY THIS ARTICLE.
 SUCH REPORT SHALL INCLUDE:
   (A) THE DOLLAR AMOUNTS AND THRESHOLDS OF THE EFFICIENCY FEES AND EFFI-
 CIENCY REBATES OF THE PRIOR YEAR;
 A. 52                               4
 
   (B) THE AMOUNT OF REVENUES COLLECTED BY THE DEPARTMENT FROM EFFICIENCY
 FEES;
   (C) THE COSTS OF COMPLYING WITH THE PROVISIONS OF THIS ARTICLE;
   (D)  THE  AMOUNT  OF EFFICIENCY REBATES DISBURSED TO OWNERS OF COVERED
 VEHICLES AFTER ACCOUNTING FOR THE COSTS DESCRIBED IN  PARAGRAPH  (C)  OF
 THIS SUBDIVISION;
   (E)  AN AGGREGATE DESCRIPTION OF THE NUMBER AND TYPES OF REGISTRATIONS
 OF COVERED VEHICLES AND THE FUEL ECONOMIES IN MPG OR MPGE OF SUCH  VEHI-
 CLES;
   (F) RECOMMENDATIONS FOR ANY LEGISLATIVE CHANGES TO THIS ARTICLE; AND
   (G)  ANY OTHER INFORMATION THE COMMISSIONER DEEMS NECESSARY TO INCLUDE
 AS A DESCRIPTION AND REVIEW OF THE FEEBATE PROGRAM.
   2. SUCH REPORT SHALL BE DELIVERED TO THE TEMPORARY  PRESIDENT  OF  THE
 SENATE,  THE  SPEAKER  OF  THE ASSEMBLY, AND THE GOVERNOR.   SUCH REPORT
 SHALL ALSO BE POSTED FOR PUBLIC REVIEW IN A CLEAR AND CONSPICUOUS MANNER
 ON THE DEPARTMENT'S WEBSITE.
   § 2. This act shall take effect immediately;  provided  that  sections
 499-e,  499-f, 499-g, 499-h and 499-j of the vehicle and traffic law, as
 added by section one of this act shall take  effect  three  years  after
 they  shall  have  become  a  law.  Effective immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made and completed on or before such effective date.