S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1343
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed 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.
   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".
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01966-01-5
 S. 1343                             2
              

 
   § 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
 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-
 S. 1343                             3
 
 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.
   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.