Senate Bill S4003A

                                
 
BILL NUMBER: S4003A

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the environmental conservation law, in
relation to establishing the "low carbon fuel standard of 2019"

 
PURPOSE:

This legislation would amend the environmental conservation law to
require the development of a low carbon fuel standard in New York State
to reduce greenhouse gas (GHG) emissions in the transportation sector.

 
SUMMARY OF PROVISIONS:

Section 1. Establishes the title of the legislation.

Section 2. Amends the environmental conservation law to create a new
Section 19-03292 require the Department of Environmental Conservation,
in consultation with the New York State Energy, Research and Development
Authority, to promulgate regulations to create a low carbon fuel stand-
ard in New York State, with priority given to implementing regulations
              

relative to the heavy-duty transportation sector consisting of vehicles
with the classification of six or higher as classified by the Federal
Highway Administration. The legislation further requires that the regu-
lations include coordination with other northeastern states to promote
regional solutions to reduce GHG emissions. It is intended that this
program be similar to the California low carbon fuel standard, which is
promoting reductions in GHG emissions in the transportation sector by
assigning carbon intensity values to all fuels taking into account the
entire lifecycle of the fuel and requiring high carbon fuels to promote
low carbon fuels through a credit mechanism.

Section 3. Makes the legislation effective immediately.

 
JUSTIFICATION:

Greenhouse gas ("GHG") emissions pose a serious threat to the health of
New York's citizens and the quality of the environment; and New York's
transportation sector is the leading source of GHG emissions in the
state, contributing over 34 percent of the state's annual GHG emissions.
New York is almost entirely dependent on one energy source for its
transportation economy, relying on petroleum-based fuels to meet a
substantial percent of its transportation needs, particularly the trans-
portation needs for medium and large trucks. Increased concentrations of
ground-level ozone that is directly related to GHG emissions can promote
respiratory illness in children and the elderly and exacerbate pre-ex-
isting respiratory illnesses. This can result in significant hospitali-
zation costs and mortality rates, both of which are higher in New York
State than the national average. In recent years, the total cost of
asthma related hospitalization in New York State was approximately six
hundred and sixty million dollars and a number of New York residents die
each year from asthma alone.

Global warming may have adverse impacts on human health and the environ-
ment. These impacts include increased heat illnesses and mortality,
respiratory illnesses from increased formation of ground-level own zone,
and the introduction or spread of vector-born illnesses. Global warming
may adversely impact New York State shoreline, drinking water sources,
agriculture, forests and wildlife diversity.  While New York State
continues to follow California regarding low emission vehicle standards,
this is not enough to address these threats from the transportation
sector.

In addition to environmental benefits from the reduction in GHG emis-
sions, there are significant economic benefits associated with greater
fuel diversity and innovation towards low emissions solutions in the
transportation sector. New York's dependence on a single type of trans-
portation fuel whose price is highly volatile imperils our economic
security, endangers our jobs, and jeopardizes our industries.  Diver-
sification of the sources of transportation fuel will help protect our
jobs and economy from the consequences of oil price shocks. In addition,
alternative fuels can provide economic development opportunities and
reduce emissions of greenhouse gases, criteria pollutants, and toxic air
contaminants from transportation and other sectors.

Although New York State has adopted the California standards for vehicle
emissions and is making strides to promote electrification in certain
transportation sectors, these efforts do not go far enough and do not
promote new, innovative technologies that take into account the full
lifecycle of transportation fuels. One of the shining examples from the
California low carbon fuel standard is the promotion of bio methane,
also known as renewable natural gas (RNG), as a transportation fuel.
This enables the agriculture industry to produce bio methane through
anaerobic digestion and match that production with an off take partner
to fuel vehicles, particularly the large tractor-trailers that continue
to drive our economy. Those vehicles, in turn, are using the Cummins
Westport Near Zero engine, produced in Jamestown, New York. Together,
these technologies reduce GHG emissions by approximately 125%. This is
one of the rare examples of how an innovative technology can be carbon
net negative.

Farmers in New York State have struggled with anaerobic digestion
because the return on the production of electricity does not pay for the
digestion process. A low carbon fuel standard in New York State would
allow us to manage carbon emissions from the agricultural sector and
reduce carbon emissions in the transportation sector at the same time.
This is just one example of innovation that can be promoted through a
low carbon fuel standard in New York State.

 
LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

The legislation authorizes registration fees for the providers of fuels,
which is intended to offset the cost of administering the program.

 
EFFECTIVE DATE:
This bill would take effect immediately