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A00862 Summary:

COSPNSRThiele, Sayegh, Williams, Griffin, Epstein, Abinanti, Magnarelli, Colton, Stirpe, Barron, Wallace, Carroll, Gottfried, Steck, Perry, Stern, Reyes, Fahy, Rosenthal D, Paulin, Pichardo, Jones, Lupardo, Quart, De La Rosa, O'Donnell, Rivera J, Dickens, Glick, Simon, Zebrowski, Hevesi, Rosenthal L, Rodriguez, Weprin, Rozic, Santabarbara, Walker, Frontus, Cook, Cusick, Otis, Vanel, Dinowitz, Hunter, Barrett, Gunther, Seawright, Galef, Niou, Fernandez, Jacobson, Hyndman, Nolan, Benedetto, Aubry, Lavine, McMahon, Cymbrowitz, Burke, Jackson, McDonald, Burdick, Barnwell, Anderson, Lunsford, Braunstein, Gallagher, Burgos, Gonzalez-Rojas, Clark, Sillitti, Solages, Kelles, Peoples-Stokes, Joyner, Bronson, Jean-Pierre, Rajkumar, Miller M, Ramos, Simpson, Ra, Cruz, Fall, Taylor, Brown, Durso, Montesano, Lawler, Dilan, Kim, Septimo, Forrest, Bichotte Hermelyn
Add §19-0329, En Con L
Establishes the clean fuel standard of 2021; such standard is intended to reduce carbon intensity from the on-road transportation sector by 20% by 2030, with further reductions to be implemented based upon advances in technology.
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A00862 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Woerner (MS)
  TITLE OF BILL: An act to amend the environmental conservation law, in relation to establishing the "clean fuel standard of 2021"   PURPOSE: This legislation would amend the environmental conservation law to require the development of a clean fuel standard in New York State to reduce greenhouse gas (GHG) emissions in the transportation sector.   SUMMARY OF PROVISIONS: Section 1. Legislative findings and declarations Section 2. Establishes the title of the legislation. Section 3. 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 clean fuel standard 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 regulations 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 4. 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. Diversifi- cation 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 clean 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 clean standard in New York State.   LEGISLATIVE HISTORY: A.5262a of 2020: Referred to Environmental Conservation.   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.
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A00862 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     January 6, 2021
        Introduced  by  M.  of  A.  WOERNER,  THIELE, SAYEGH, WILLIAMS, GRIFFIN,
          and referred to the Committee on Environmental Conservation -- commit-
          tee discharged, bill amended, ordered reprinted as amended and  recom-
          mitted to said committee
        AN  ACT  to  amend  the  environmental  conservation law, in relation to
          establishing the "clean fuel standard of 2021"
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1.  Legislative findings and declarations:
     2    1. The transportation sector in New York is a leading source of crite-
     3  ria  pollutants  and the leading source of greenhouse gas emissions that
     4  endanger public health  and  welfare  by  causing  and  contributing  to
     5  increased  air  pollution  and  dangerous  climate  change.  Meeting the
     6  pollution reduction requirements of the Climate Leadership and  Communi-
     7  ties  Protection  Act will require sharp decreases in transportation-re-
     8  lated emissions.
     9    2. Shifting  from  today's  petroleum-based  transportation  fuels  to
    10  alternative  fuels has the potential to significantly reduce transporta-
    11  tion emissions of air pollutants and greenhouse gases and is recommended
    12  by the Intergovernmental Panel on Climate Change as an important pathway
    13  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.

        A. 862--A                           2
     1    3. The Climate Leadership and Communities Protection Act  directs  the
     2  Department  of  Environmental  Protection to promulgate regulations that
     3  will reduce greenhouse gas emissions, including from on-road vehicles.
     4    4.  New York signed a 15-state MOU to develop an action plan to reduce
     5  toxic diesel emissions from medium and heavy-duty vehicles by 2050.
     6    5.  A  clean  fuels  standard  regulation  would  promote   innovation
     7  production  and use of non-petroleum fuels that reduce vehicle and fuel-
     8  related air pollution that  endangers  public  health  and  welfare  and
     9  disproportionately impacts disadvantaged communities.
    10    § 2. Short title. This act may be known and may be cited as the "clean
    11  fuel standard of 2021".
    12    §  3.  The  environmental  conservation law is amended by adding a new
    13  section 19-0329 to read as follows:
    14  § 19-0329. Clean fuel standard.
    15    (1) A clean fuel standard is hereby established. The clean fuel stand-
    16  ard is intended to reduce carbon intensity from the on-road  transporta-
    17  tion  sector  by  twenty  percent  by  two thousand thirty, with further
    18  reductions to be implemented based upon advances in technology as deter-
    19  mined by the commissioner.  Aviation fuels shall be  exempted  from  the
    20  clean  fuel standard due to federal preemption, but sustainable aviation
    21  fuel shall be eligible to generate credits on an opt-in basis.
    22    (2) The clean fuel standard shall apply to all providers of  transpor-
    23  tation fuels, including electricity, in New York, shall be measured on a
    24  full  fuels  lifecycle basis and may be met through market-based methods
    25  by which providers exceeding the performance required by the clean  fuel
    26  standard shall receive credits that may be applied to future obligations
    27  or  traded to providers not meeting the clean fuel standard.  The gener-
    28  ation of  credits  must  use  a  lifecycle  emissions  performance-based
    29  approach that is technology and feedstock neutral to achieve fuel decar-
    30  bonization.  In  addition  to  fuel  decarbonization,  credits generated
    31  through the use of clean fuel types will  help  promote  innovation  and
    32  investment  in  such clean fuels.  For purposes of this section the term
    33  "providers" shall include, but shall not be limited  to,  all  refiners,
    34  blenders, producers or importers of transportation fuels, or enablers of
    35  electricity  used  as  transportation fuel, "carbon intensity" means the
    36  quantity of lifecycle greenhouse gas emissions per unit of fuel  energy,
    37  and  "full  fuels lifecycle" means the aggregate of greenhouse gas emis-
    38  sions, including direct emissions and  significant  indirect  emissions,
    39  such as significant emissions from land use changes as determined by the
    40  commissioner.  The  full fuels lifecycle includes all stages of fuel and
    41  feedstock production and  distribution,  from  feedstock  generation  or
    42  extraction through the distribution and delivery and use of the finished
    43  fuel  by  the  ultimate  consumer.  In  calculating full fuels lifecycle
    44  greenhouse gas emissions, the mass  values  for  all  non-carbon-dioxide
    45  greenhouse  gases  must be adjusted to account for their relative global
    46  warming potentials. This  conversion  shall  use  the  most  appropriate
    47  conversion  relative  to  global warming potentials as determined by the
    48  commissioner based on the best available science.
    49    (3) Within twenty-four months following adoption  of  the  clean  fuel
    50  standard,  the  commissioner,  in  consultation  with the New York state
    51  energy research and development authority, shall promulgate  regulations
    52  establishing a clean fuel standard with performance objectives to imple-
    53  ment  subdivision  one  of  this section. Such regulations may be phased
    54  into effect giving priority  to  the  heavy-duty  transportation  sector
    55  consisting of vehicles with the classification of six or higher as clas-
    56  sified  by  the  Federal Highway Administration. The clean fuel standard

        A. 862--A                           3
     1  shall take into consideration the low carbon fuel  standard  adopted  in
     2  California  and  other  states,  may  rely  upon the carbon intensity of
     3  values established for transportation fuels in  such  states  and  shall
     4  include  coordination with other Northeastern states to promote regional
     5  reductions in greenhouse gas emissions.
     6    (4) The regulations adopted pursuant to  this  section  shall  include
     7  fees  for  the  registration of providers to offset the costs associated
     8  with implementation of the clean fuel standard.
     9    (5) Within twenty-four months following the  adoption  of  regulations
    10  implementing a clean fuel standard, the commissioner shall report to the
    11  legislature  regarding the implementation of the program, the reductions
    12  in greenhouse gas emissions that have been achieved  through  the  clean
    13  fuel  standard and targets for future reductions in greenhouse gas emis-
    14  sions from the transportation sector.
    15    (6) Nothing in this section shall preclude the department from  enact-
    16  ing  or  maintaining  other  programs to reduce greenhouse gas emissions
    17  from the transportation sector.
    18    § 4. This act shall take effect immediately.
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