S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2962--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by  Sens.  PARKER,  ADDABBO, BAILEY, BIAGGI, BOYLE, BRESLIN,
   BRISPORT,  BROOKS,  BROUK,   COMRIE,   COONEY,   GAUGHRAN,   GIANARIS,
   GOUNARDES,  HARCKHAM,  HINCHEY,  HOYLMAN,  JACKSON,  KAMINSKY, KAPLAN,
   KAVANAGH, KENNEDY, KRUEGER,  LIU,  MANNION,  MARTUCCI,  MATTERA,  MAY,
   MAYER,  MYRIE,  OBERACKER, PALUMBO, PERSAUD, REICHLIN-MELNICK, RIVERA,
   SALAZAR,  SANDERS,  SAVINO,  SEPULVEDA,  SERRANO,  SKOUFIS,  STAVISKY,
   THOMAS, WEIK -- read twice and ordered printed, and when printed to be
   committed  to the Committee on Environmental Conservation -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee -- recommitted to  the  Committee  on  Environmental
   Conservation  in  accordance  with  Senate Rule 6, sec. 8 -- 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 2022"
 
   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 Communi-
 ties Protection Act will require sharp decreases  in  transportation-re-
 lated 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.
                                                            LBD01173-05-2
 S. 2962--B                          2
              
             
                          
                 
   3.  The  Climate Leadership and Communities 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 2022".
   §  3.  The  environmental  conservation law is amended by adding a new
 section 19-0331 to read as follows:
 § 19-0331. CLEAN FUEL STANDARD.
   (1) A CLEAN FUEL STANDARD IS HEREBY ESTABLISHED. THE CLEAN FUEL STAND-
 ARD IS INTENDED TO REDUCE CARBON INTENSITY FROM THE ON-ROAD  TRANSPORTA-
 TION  SECTOR  BY  TWENTY  PERCENT  BY  TWO THOUSAND THIRTY, WITH FURTHER
 REDUCTIONS TO BE IMPLEMENTED BASED UPON ADVANCES IN  TECHNOLOGY  AND  TO
 SUPPORT  ACHIEVING  THE  GOALS  OF  THE  CLIMATE ACTION PLAN ESTABLISHED
 PURSUANT TO SECTION 75-0103 OF THIS CHAPTER AS DETERMINED BY THE COMMIS-
 SIONER.  AVIATION FUELS SHALL BE EXEMPTED FROM THE CLEAN  FUEL  STANDARD
 DUE TO FEDERAL PREEMPTION, BUT SUSTAINABLE AVIATION FUEL SHALL BE ELIGI-
 BLE TO GENERATE CREDITS ON AN OPT-IN BASIS.
   (2)  THE CLEAN FUEL STANDARD SHALL APPLY TO ALL PROVIDERS OF TRANSPOR-
 TATION 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 FUEL DECAR-
 BONIZATION. IN  ADDITION  TO  FUEL  DECARBONIZATION,  CREDITS  GENERATED
 THROUGH  THE  USE  OF  CLEAN FUEL TYPES WILL HELP PROMOTE INNOVATION AND
 INVESTMENT IN SUCH CLEAN FUELS.  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, "CARBON  INTENSITY"  MEANS  THE
 QUANTITY  OF LIFECYCLE GREENHOUSE GAS EMISSIONS PER UNIT OF FUEL ENERGY,
 AND "FULL FUELS LIFECYCLE" MEANS THE AGGREGATE OF GREENHOUSE  GAS  EMIS-
 SIONS,  INCLUDING  DIRECT  EMISSIONS AND SIGNIFICANT INDIRECT EMISSIONS,
 SUCH AS SIGNIFICANT EMISSIONS FROM LAND USE CHANGES AS DETERMINED BY THE
 COMMISSIONER. THE FULL FUELS LIFECYCLE SHALL BE  ASSESSED  ANNUALLY  AND
 ALL  STAGES  OF  FUEL  AND  FEEDSTOCK  PRODUCTION AND DISTRIBUTION, FROM
 FEEDSTOCK GENERATION OR EXTRACTION THROUGH THE DISTRIBUTION AND DELIVERY
 AND USE OF THE FINISHED FUEL BY THE ULTIMATE  CONSUMER.  IN  CALCULATING
 FULL  FUELS  LIFECYCLE GREENHOUSE GAS EMISSIONS, THE MASS VALUES FOR ALL
 NON-CARBON-DIOXIDE GREENHOUSE GASES MUST  BE  ADJUSTED  TO  ACCOUNT  FOR
 THEIR  RELATIVE GLOBAL WARMING POTENTIALS. THIS CONVERSION SHALL USE THE
 MOST APPROPRIATE CONVERSION RELATIVE TO  GLOBAL  WARMING  POTENTIALS  AS
 DETERMINED BY THE COMMISSIONER BASED ON THE BEST AVAILABLE SCIENCE.
   (3)  WITHIN  TWENTY-FOUR  MONTHS  FOLLOWING ADOPTION OF THE CLEAN FUEL
 STANDARD, THE COMMISSIONER, IN CONSULTATION  WITH  THE  NEW  YORK  STATE
 ENERGY  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  MAY  BE  PHASED
 INTO  EFFECT  GIVING  PRIORITY  TO  THE HEAVY-DUTY TRANSPORTATION SECTOR
 S. 2962--B                          3
 
 CONSISTING OF VEHICLES WITH THE CLASSIFICATION OF SIX OR HIGHER AS CLAS-
 SIFIED BY THE FEDERAL HIGHWAY ADMINISTRATION. THE  CLEAN  FUEL  STANDARD
 SHALL  TAKE  INTO  CONSIDERATION THE LOW CARBON FUEL STANDARD ADOPTED IN
 CALIFORNIA  AND  OTHER  STATES,  MAY  RELY  UPON THE CARBON INTENSITY OF
 VALUES ESTABLISHED FOR TRANSPORTATION FUELS IN  SUCH  STATES  AND  SHALL
 INCLUDE  COORDINATION WITH OTHER NORTHEASTERN STATES TO PROMOTE REGIONAL
 REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
   (4) THE REGULATIONS ADOPTED PURSUANT TO  THIS  SECTION  SHALL  INCLUDE
 FEES  FOR  THE  REGISTRATION OF PROVIDERS TO OFFSET THE COSTS ASSOCIATED
 WITH IMPLEMENTATION OF THE CLEAN FUEL STANDARD.
   (5) INVESTMENT OF  FUNDS.  ELECTRIC  UTILITIES,  STATE  AGENCIES,  AND
 AUTHORITIES,  IN CONSULTATION WITH THE CLIMATE JUSTICE WORKING GROUP AND
 THE CLIMATE ACTION COUNCIL ESTABLISHED PURSUANT TO  SECTION  75-0103  OF
 THIS CHAPTER, SHALL, TO  THE EXTENT PRACTICABLE, INVEST OR DIRECT AVAIL-
 ABLE  AND  RELEVANT  PROGRAMMATIC  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 LIMIT-
 ED TO, ELECTRIFICATION AND BATTERY SWAP PROGRAMS FOR SCHOOL  OR  TRANSIT
 BUSES;  ELECTRIFICATION OF DRAYAGE TRUCKS; INVESTMENT IN PUBLIC ELECTRIC
 VEHICLE CHARGING INFRASTRUCTURE AND ELECTRIC  VEHICLE  CHARGING  INFRAS-
 TRUCTURE  IN  MULTI-FAMILY  RESIDENCES;  INVESTMENT IN ELECTRIC MOBILITY
 SOLUTIONS SUCH AS ELECTRIC 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 INCENTIVES.
   (6) 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.
   (7) NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM  ENACT-
 ING  OR  MAINTAINING  OTHER  PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS
 FROM THE TRANSPORTATION SECTOR.
   § 4. This act shall take effect immediately.