S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  964--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M.  of A. WOERNER, THIELE, SAYEGH, WILLIAMS, MAGNARELLI,
   COLTON, STIRPE, WALLACE, CARROLL, STERN, REYES, FAHY,  PAULIN,  JONES,
   LUPARDO,  RIVERA,  DICKENS,  GLICK,  SIMON, ZEBROWSKI, HEVESI, WEPRIN,
   ROZIC, SANTABARBARA, WALKER, COOK, VANEL, DINOWITZ,  HUNTER,  BARRETT,
   GUNTHER,  SEAWRIGHT,  JACOBSON,  HYNDMAN,  BENEDETTO,  AUBRY, McMAHON,
   BURKE,  JACKSON,  BURDICK,  ANDERSON,  LUNSFORD,  BRAUNSTEIN,  BURGOS,
   CLARK,  PEOPLES-STOKES,  BRONSON,  JEAN-PIERRE, RAJKUMAR, SIMPSON, RA,
   CRUZ, FALL, TAYLOR, K. BROWN, DURSO,  DILAN,  KIM,  BICHOTTE HERMELYN,
   BUTTENSCHON,  CONRAD,  DeSTEFANO,  GIBBS, MIKULIN, STECK, BORES, RAGA,
   ARDILA, SOLAGES, SHIMSKY, McDONALD, LAVINE,  DE LOS SANTOS,  GANDOLFO,
   CUNNINGHAM,  EPSTEIN,  LEE,  SIMONE,  L. ROSENTHAL,  FORREST,  EACHUS,
   LEVENBERG, SILLITTI, NOVAKHOV, ZINERMAN,  PRETLOW,  SEPTIMO,  ZACCARO,
   MEEKS,  PHEFFER AMATO,  DAVILA,  SLATER,  O'DONNELL  --  read once and
   referred to the Committee on Environmental Conservation -- recommitted
   to the Committee on  Environmental  Conservation  in  accordance  with
   Assembly Rule 3, sec. 2 -- 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 2024"
 
   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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01696-03-3
              

 A. 964--A                           2
 
 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-
 related air pollution that  endangers  public  health  and  welfare  and
 disproportionately  impacts  disadvantaged communities. These reductions
 in air pollution would be paid for by the fossil  fuel  industry  rather
 than ratepayers.
   § 2. Short title. This act may be known and may be cited as the "clean
 fuel standard of 2024".
   §  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  NO LESS THAN THIRTY PERCENT BY TWO THOUSAND THIRTY-TWO
 AND ONE HUNDRED PERCENT BY TWO THOUSAND FIFTY.  IN ADVANCE OF TWO  THOU-
 SAND  THIRTY-TWO  AND  EVERY FIVE YEARS THEREAFTER, THE DEPARTMENT SHALL
 PROMULGATE  REGULATIONS  DETERMINING  THE   MINIMUM   CARBON   INTENSITY
 REDUCTION TO BE ACHIEVED OVER THE FOLLOWING FIVE YEARS 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 COMMISSIONER.   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 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  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  AS
 DETERMINED  BY THE COMMISSIONER, SUCH AS SIGNIFICANT EMISSIONS FROM LAND
 USE CHANGES. THE FULL FUELS LIFECYCLE SHALL BE ASSESSED ANNUALLY AT  ALL
 STAGES OF FUEL AND FEEDSTOCK PRODUCTION AND DISTRIBUTION, FROM FEEDSTOCK
 GENERATION  OR  EXTRACTION THROUGH THE DISTRIBUTION AND DELIVERY AND USE
 A. 964--A                           3
 
 OF THE FINISHED FUEL BY THE ULTIMATE CONSUMER,  USING  THE  MOST  RECENT
 VERSION OF THE ARGONNE NATIONAL LABS GREET MODEL, OR A DERIVATION THERE-
 OF THAT REFLECTS THE USE OF CLEAN FUELS IN NEW YORK. 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  COMPARED TO AN EQUIVALENT MASS OF
 CARBON DIOXIDE OVER AN INTEGRATED TWENTY-YEAR TIME FRAME AFTER EMISSION.
 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  TWELVE MONTHS FOLLOWING ADOPTION OF THE CLEAN FUEL STAND-
 ARD, THE COMMISSIONER, IN CONSULTATION WITH THE NEW  YORK  STATE  ENERGY
 RESEARCH  AND DEVELOPMENT AUTHORITY, SHALL PROMULGATE REGULATIONS ESTAB-
 LISHING A CLEAN FUEL STANDARD WITH PERFORMANCE OBJECTIVES  TO  IMPLEMENT
 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  ESTABLISHED
 FOR  TRANSPORTATION  FUELS IN SUCH STATES AND SHALL INCLUDE COORDINATION
 WITH OTHER NORTHEASTERN STATES TO PROMOTE REGIONAL REDUCTIONS IN  GREEN-
 HOUSE 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)  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.
   (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.