Senate Bill S10668

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10668
 
                             I N  S E N A T E
 
                               July 24, 2026
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  the  indigenous  clean  biofuel  innovation and resource
   partnership pilot program to develop and deploy low-carbon bio-blended
   fuels in alignment with the state's clean fuel standards;  and  making
   an appropriation therefor
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent. 1. The  legislature  hereby  finds  and
 declares that:
   (a)  The  transition to a low-carbon energy economy requires the rapid
 deployment of cleaner fuels that can  reduce  greenhouse  gas  emissions
 while maintaining energy reliability and affordability;
   (b)  New  York  state has committed to aggressive emissions reductions
 under the climate leadership and community protection act, including the
 decarbonization of the transportation and heating sectors;
   (c) Low-carbon fuel  strategies,  including  biodiesel  and  renewable
 bio-blended  fuels,  provide  immediate  and scalable pathways to reduce
 emissions from existing infrastructure  without  requiring  full  system
 replacement;
   (d)  Regional  oil  and  gas  resources,  when combined with renewable
 biological feedstocks and advanced refining  processes,  can  be  trans-
 formed into cleaner-burning, lower-emission fuels;
   (e)  Indigenous  Nations  are essential partners in energy development
 and environmental stewardship and must have equitable  participation  in
 resource development, production, and economic benefit-sharing; and
   (f)  The  development  of in-state clean fuel production capacity will
 strengthen energy independence, create jobs, and position New York as  a
 national leader in next-generation fuel innovation.
   2.  It is therefore the intent of the legislature to establish a pilot
 program that:
   (a) integrates natural resource  utilization  with  renewable  biofuel
 innovation;

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

                                                            LBD16155-01-6
 S. 10668                            2
 
   (b) supports indigenous-led participation and ownership;
   (c) aligns with clean fuel standards and biodiesel policy goals; and
   (d) accelerates deployment of low-carbon fuels across New York state.
   §  2.  The  environmental  conservation law is amended by adding a new
 section 19-0333 to read as follows:
 § 19-0333. INDIGENOUS CLEAN BIOFUEL INNOVATION AND RESOURCE  PARTNERSHIP
              PILOT PROGRAM.
   1.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "PILOT PROGRAM" MEANS THE INDIGENOUS CLEAN BIOFUEL INNOVATION  AND
 RESOURCE PARTNERSHIP PILOT PROGRAM;
   (B) "BIO-BLENDED FUEL" MEANS A FUEL COMPOSED OF:
   (I) CONVENTIONAL PETROLEUM-BASED FUELS; AND
   (II)  RENEWABLE  BIOLOGICAL FEEDSTOCKS, INCLUDING BIODIESEL, RENEWABLE
 DIESEL, OR OTHER LOW-CARBON FUEL COMPONENTS;
   (C)  "LOW-CARBON  FUEL"  MEANS  A  FUEL  THAT  ACHIEVES  A  MEASURABLE
 REDUCTION IN LIFECYCLE GREENHOUSE GAS EMISSIONS COMPARED TO CONVENTIONAL
 PETROLEUM FUELS;
   (D)  "PARTICIPATING  INDIGENOUS NATIONS" MEANS FEDERALLY RECOGNIZED OR
 STATE-RECOGNIZED NATIVE AMERICAN TRIBES WITH HISTORICAL,  ANCESTRAL,  OR
 PRESENT TIES TO REGIONS WITHIN NEW YORK STATE; AND
   (E)  "CLEAN  FUEL STANDARD" MEANS ANY STATE PROGRAM DESIGNED TO REDUCE
 THE CARBON INTENSITY  OF  TRANSPORTATION  OR  HEATING  FUELS,  INCLUDING
 PROGRAMS ADMINISTERED OR DEVELOPED BY THE DEPARTMENT.
   2. THERE IS HEREBY ESTABLISHED THE INDIGENOUS CLEAN BIOFUEL INNOVATION
 AND  RESOURCE PARTNERSHIP PILOT PROGRAM. THE PILOT PROGRAM SHALL SUPPORT
 THE DEVELOPMENT AND DEPLOYMENT OF LOW-CARBON BIO-BLENDED FUELS  THROUGH-
 OUT NEW YORK STATE. THE PILOT PROGRAM SHALL BE ADMINISTERED JOINTLY BY:
   (A) THE STATE OF NEW YORK;
   (B) PARTICIPATING INDIGENOUS NATIONS; AND
   (C) PRIVATE SECTOR AND RESEARCH PARTNERS.
   3.  (A)  THE  STATE  SHALL  ENGAGE  IN FORMAL GOVERNMENT-TO-GOVERNMENT
 CONSULTATION WITH PARTICIPATING INDIGENOUS  NATIONS.  SUCH  CONSULTATION
 SHALL INCLUDE:
   (I) AGREEMENTS RELATED TO RESOURCE USE AND DEVELOPMENT;
   (II) OWNERSHIP AND REVENUE-SHARING STRUCTURES; AND
   (III) SITING OF PRODUCTION AND REFINING FACILITIES.
   (B)  PARTICIPATING  INDIGENOUS NATIONS SHALL HAVE MEANINGFUL AUTHORITY
 IN:
   (I) PROJECT DESIGN AND DEVELOPMENT;
   (II) OPERATIONAL OVERSIGHT; AND
   (III) LONG-TERM ECONOMIC PARTICIPATION.
   4. THE PILOT PROGRAM SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (A) FUEL INNOVATION AND PRODUCTION, INCLUDING:
   (I) THE DEVELOPMENT OF BIO-BLENDED FUELS COMBINING:
   (A) NATURAL GAS OR PETROLEUM DERIVATIVES; AND
   (B) BIODIESEL AND RENEWABLE FEEDSTOCKS INCLUDING WASTE OILS,  AGRICUL-
 TURAL BYPRODUCTS, AND ALGAE-BASED FUELS; AND
   (II)  INVESTMENT  IN  REFINING  AND BLENDING INFRASTRUCTURE WITHIN NEW
 YORK STATE;
   (B) ALIGNMENT WITH CLEAN FUEL STANDARDS, INCLUDING:
   (I) INTEGRATION WITH EMERGING CLEAN FUEL STANDARD FRAMEWORKS;
   (II) LIFECYCLE CARBON INTENSITY MEASUREMENT AND REDUCTION TARGETS; AND
   (III) CERTIFICATION PATHWAYS FOR QUALIFYING LOW-CARBON FUELS;
   (C) BIODIESEL AND RENEWABLE FUEL EXPANSION, INCLUDING:
   (I) SUPPORT FOR EXISTING BIODIESEL MARKETS AND LEGISLATION;
 S. 10668                            3
 
   (II) INCENTIVES FOR INCREASED BLEND LEVELS IN HEATING OIL  AND  TRANS-
 PORTATION FUELS; AND
   (III) EXPANSION OF RENEWABLE DIESEL AVAILABILITY;
   (D) INFRASTRUCTURE AND DEPLOYMENT, INCLUDING:
   (I) DISTRIBUTION THROUGH EXISTING FUEL NETWORKS; AND
   (II)  USE  IN  MUNICIPAL  FLEETS,  PUBLIC  TRANSIT SYSTEMS AND HEATING
 APPLICATIONS IN RESIDENTIAL AND COMMERCIAL BUILDINGS;
   (E) RESEARCH AND DEVELOPMENT, INCLUDING:
   (I) PARTNERSHIPS WITH UNIVERSITIES AND NATIONAL LABORATORIES; AND
   (II) INNOVATION IN FUEL EFFICIENCY, EMISSIONS REDUCTION  AND  ADVANCED
 BLENDING TECHNOLOGIES; AND
   (F) WORKFORCE DEVELOPMENT, INCLUDING:
   (I)  TRAINING  PROGRAMS  PRIORITIZING INDIGENOUS COMMUNITIES AND LOCAL
 WORKERS; AND
   (II) JOB CREATION IN FUEL PRODUCTION, LOGISTICS AND DISTRIBUTION,  AND
 SYSTEM MAINTENANCE.
   5. ALL FUELS DEVELOPED UNDER THE PILOT PROGRAM SHALL DEMONSTRATE MEAS-
 URABLE  LIFECYCLE GREENHOUSE GAS REDUCTIONS. THE DEPARTMENT SHALL ESTAB-
 LISH CARBON INTENSITY BENCHMARKS CONSISTENT WITH THE CLIMATE  LEADERSHIP
 AND COMMUNITY PROTECTION ACT. PREFERENCE SHALL BE GIVEN TO FUELS THAT:
   (A) REDUCE PARTICULATE EMISSIONS;
   (B) IMPROVE AIR QUALITY IN DISADVANTAGED COMMUNITIES; AND
   (C) SUPPORT NEAR-TERM EMISSIONS REDUCTIONS.
   6.  (A)  THE  DEPARTMENT SHALL SUBMIT AN ANNUAL REPORT TO THE GOVERNOR
 AND THE LEGISLATURE NO LATER THAN  DECEMBER  FIRST  OF  EACH  YEAR.  THE
 REPORT SHALL INCLUDE THE:
   (I) EMISSIONS REDUCTIONS ACHIEVED;
   (II) VOLUME OF CLEAN FUEL PRODUCED AND DEPLOYED;
   (III) ECONOMIC AND WORKFORCE IMPACTS; AND
   (IV) INDIGENOUS PARTICIPATION AND OWNERSHIP OUTCOMES.
   (B)  A  COMPREHENSIVE PROGRAM EVALUATION SHALL BE CONDUCTED AFTER FIVE
 YEARS.
   7. FOLLOWING A COMPREHENSIVE PROGRAM EVALUATION,  THE  DEPARTMENT  MAY
 EXPAND  THE  PROGRAM  STATEWIDE  AND  INTEGRATE IT FULLY INTO CLEAN FUEL
 STANDARD PROGRAMS.
   § 3. The sum of forty million dollars ($40,000,000), or so much there-
 of as may be necessary, is hereby  appropriated  to  the  department  of
 environmental  conservation  out  of any moneys in the state treasury in
 the general fund to the credit of the state purposes account, not other-
 wise appropriated, and made immediately available, for  the  purpose  of
 carrying  out  the provisions of this act.  Such moneys shall be payable
 on the audit and warrant of the comptroller  on  vouchers  certified  or
 approved  by the commissioner of the department of environmental conser-
 vation in the manner prescribed by law.
   § 4. This act shall take effect immediately.