S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1292
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2023
                                ___________
 
 Introduced  by  Sens.  PARKER,  ADDABBO, BAILEY, BRESLIN, BROUK, CLEARE,
   COMRIE, COONEY, GIANARIS, GOUNARDES, HARCKHAM, HINCHEY, HOYLMAN-SIGAL,
   JACKSON, KAVANAGH,  KENNEDY,  KRUEGER,  LIU,  MANNION,  MATTERA,  MAY,
   MAYER,  MYRIE,  OBERACKER,  PALUMBO,  PERSAUD,  RIVERA, RYAN, SALAZAR,
   SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY, THOMAS, WEIK  --  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 2023"
 
   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.
   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-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01696-02-3
              

 S. 1292                             2
 
 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 2023".
   §  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 CARBON INTENSITY FROM THE ON-ROAD  TRANSPORTA-
 TION  SECTOR  BY TWENTY PERCENT BY TWO THOUSAND THIRTY-ONE, 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.  FUELS WHICH PROVIDE NET HUMAN HEALTH BENEFITS  THROUGH  OVERALL
 AIR  QUALITY IMPROVEMENTS RELATIVE 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 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. 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  ESTAB-
 LISHED FOR TRANSPORTATION FUELS IN SUCH STATES AND SHALL INCLUDE COORDI-
 NATION  WITH OTHER NORTHEASTERN STATES TO PROMOTE REGIONAL REDUCTIONS IN
 GREENHOUSE GAS EMISSIONS.
 S. 1292                             3
 
   (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.