A00964 Summary:

COSPNSRThiele, Sayegh, Williams, Magnarelli, Colton, Stirpe, Wallace, Carroll, Stern, Reyes, Fahy, Rosenthal D, 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, Joyner, Bronson, Jean-Pierre, Rajkumar, Simpson, Ra, Cruz, Fall, Taylor, Brown K, 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, Rosenthal L, Forrest, Eachus, Levenberg, Sillitti, Novakhov, Zinerman, Pretlow, Septimo, Zaccaro, Meeks, Pheffer Amato, O'Donnell
Add §19-0333, En Con L
Establishes the clean fuel standard of 2023; provides such standard is intended to reduce carbon intensity from the on-road transportation sector by 20% by 2031, with further reductions to be implemented based upon advances in technology.
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A00964 Actions:

01/11/2023referred to environmental conservation
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A00964 Committee Votes:

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A00964 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the environmental conservation law, in relation to establishing the "clean fuel standard of 2023"   PURPOSE: This legislation amends 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 to achieve the goals set forth in the climate leadership and community protection act.   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 anew section 19-0333 to 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. Other than aviation fuels which are pre-empted by feder- al law, the standard will apply to all providers of transportation fuels, including electricity, and is intended to reduce carbon intensity from the on-road transportation sector by at least twenty percent by 2031. The legislation further requires the regulations to consider the low carbon fuel standard adopted in California and other states, include coordination with other northeastern states to promote regional solutions to reduce GHG emissions, and include fees for registering providers to offset implementation costs. The legislation requires elec- tric utilities, state agencies, and authorities, in consultation with the climate justice working group and climate action council, to invest or direct, to the extent practicable, forty percent of the entity's earned credit value to electrified transportation programs, projects or investments to directly benefit disadvantaged communities. This program is intended to 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. The commissioner shall report to the legislature within twenty-four months following adoption of the regulations. 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's transportation economy currently relies almost entirely on petroleum-based fuels to meet a substantial percent of its transporta- tion needs, particularly the transportation needs for medium and large trucks. Increased concentrations of ground-level ozone - directly related to GHG emissions - can promote respiratory illness in children and the elderly and exacerbate pre-existing respiratory illnesses. This can result in significant hospitalization 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; 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 ozone, 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, these efforts are not enough to address the transportation sector threats. Greater fuel diversity and innovation towards low emissions solutions in the transportation sector also provides significant economic benefit. New York's existing dependence on a single type of transportation fuel - whose price is highly volatile - imperils our economic security, endan- gers our jobs, and jeopardizes our industries. Diversifying the sources of transportation fuel helps to 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, nor do they promote new, innovative technologies that account for the full lifecycle of transportation fuels.   LEGISLATIVE HISTORY: A.862B of 2022: Referred to Environmental Conservation. S.2962B of 2022: Committed to Rules. A.5262A of 2020: Referred to Environmental Conservation. S.4003A 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: Immediately.
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A00964 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                   IN ASSEMBLY
                                    January 11, 2023
        Introduced  by  M.  of A. WOERNER, THIELE, SAYEGH, WILLIAMS, MAGNARELLI,
          LIN, STECK -- read once and referred to the Committee on Environmental
        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:
     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.
    14    3.  The  Climate Leadership and Communities Protection Act directs the
    15  Department of Environmental Protection to  promulgate  regulations  that
    16  will reduce greenhouse gas emissions, including from on-road vehicles.

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

        A. 964                              2
     1    4.  New York signed a 15-state MOU to develop an action plan to reduce
     2  toxic diesel emissions from medium and heavy-duty vehicles by 2050.
     3    5.   A  clean  fuels  standard  regulation  would  promote  innovation
     4  production and use of non-petroleum fuels that reduce vehicle and  fuel-
     5  related  air  pollution  that  endangers  public  health and welfare and
     6  disproportionately impacts disadvantaged communities.
     7    § 2. Short title. This act may be known and may be cited as the "clean
     8  fuel standard of 2023".
     9    § 3. The environmental conservation law is amended  by  adding  a  new
    10  section 19-0333 to read as follows:
    11  § 19-0333. Clean fuel standard.
    12    (1) A clean fuel standard is hereby established. The clean fuel stand-
    13  ard  is intended to reduce carbon intensity from the on-road transporta-
    14  tion sector by twenty percent by two thousand thirty-one,  with  further
    15  reductions  to  be  implemented based upon advances in technology and to
    16  support achieving the goals  of  the  climate  action  plan  established
    17  pursuant to section 75-0103 of this chapter as determined by the commis-
    18  sioner.    Fuels which provide net human health benefits through overall
    19  air quality improvements relative to diesel and gasoline usage shall  be
    20  eligible.  Aviation fuels shall be exempted from the clean fuel standard
    21  due to federal preemption, but sustainable aviation fuel shall be eligi-
    22  ble to generate credits on an opt-in basis.
    23    (2)  The clean fuel standard shall apply to all providers of transpor-
    24  tation fuels, including electricity, in New York, shall be measured on a
    25  full fuels lifecycle basis and may be met through  market-based  methods
    26  by  which providers exceeding the performance required by the clean fuel
    27  standard shall receive credits that may be applied to future obligations
    28  or traded to providers not meeting the clean fuel standard.  The  gener-
    29  ation  of  credits  must  use  a  lifecycle  emissions performance-based
    30  approach that is technology and feedstock neutral to achieve fuel decar-
    31  bonization. In  addition  to  fuel  decarbonization,  credits  generated
    32  through  the  use  of  clean fuel types will help promote innovation and
    33  investment in such clean fuels.  For purposes of this section  the  term
    34  "providers"  shall  include,  but shall not be limited to, all refiners,
    35  blenders, producers or importers of transportation fuels, or enablers of
    36  electricity used as transportation fuel, "carbon  intensity"  means  the
    37  quantity  of lifecycle greenhouse gas emissions per unit of fuel energy,
    38  and "full fuels lifecycle" means the aggregate of greenhouse  gas  emis-
    39  sions,  including  direct  emissions and significant indirect emissions,
    40  such as significant emissions from land use changes as determined by the
    41  commissioner. The full fuels lifecycle shall be  assessed  annually  and
    42  all  stages  of  fuel  and  feedstock  production and distribution, from
    43  feedstock generation or extraction through the distribution and delivery
    44  and use of the finished fuel by the ultimate  consumer.  In  calculating
    45  full  fuels  lifecycle greenhouse gas emissions, the mass values for all
    46  non-carbon-dioxide greenhouse gases must  be  adjusted  to  account  for
    47  their  relative global warming potentials. This conversion shall use the
    48  most appropriate conversion relative to  global  warming  potentials  as
    49  determined by the commissioner based on the best available science.
    50    (3)  Within  twenty-four  months  following adoption of the clean fuel
    51  standard, the commissioner, in consultation  with  the  New  York  state
    52  energy  research and development authority, shall promulgate regulations
    53  establishing a clean fuel standard with performance objectives to imple-
    54  ment subdivision one of this section. The clean fuel standard shall take
    55  into consideration the low carbon fuel standard  adopted  in  California
    56  and  other  states,  may rely upon the carbon intensity of values estab-

        A. 964                              3
     1  lished for transportation fuels in such states and shall include coordi-
     2  nation with other Northeastern states to promote regional reductions  in
     3  greenhouse gas emissions.
     4    (4)  The  regulations  adopted  pursuant to this section shall include
     5  fees for the registration of providers to offset  the  costs  associated
     6  with implementation of the clean fuel standard.
     7    (5)  Investment  of  funds.  Electric  utilities,  state agencies, and
     8  authorities, in consultation with the climate justice working group  and
     9  the  climate  action  council established pursuant to section 75-0103 of
    10  this chapter, shall, to  the extent practicable, invest or direct avail-
    11  able and relevant programmatic resources to  provide  forty  percent  of
    12  such  electric  utility's, state agency's, or authority's overall credit
    13  value on electrified transportation programs, projects,  or  investments
    14  to directly benefit disadvantaged communities, including, but not limit-
    15  ed  to,  electrification and battery swap programs for school or transit
    16  buses; electrification of drayage trucks; investment in public  electric
    17  vehicle  charging  infrastructure  and electric vehicle charging infras-
    18  tructure in multi-family residences;  investment  in  electric  mobility
    19  solutions  such  as  electric vehicle sharing and ride hailing programs;
    20  multilingual marketing, education, and  outreach  designed  to  increase
    21  awareness  and adoption of electric vehicles; and additional rebates and
    22  incentives for low-income individuals beyond  existing  local,  federal,
    23  and state rebates and incentives.
    24    (6)  Within  twenty-four  months following the adoption of regulations
    25  implementing a clean fuel standard, the commissioner shall report to the
    26  legislature regarding the implementation of the program, the  reductions
    27  in  greenhouse  gas  emissions that have been achieved through the clean
    28  fuel standard and targets for future reductions in greenhouse gas  emis-
    29  sions from the transportation sector.
    30    (7)  Nothing in this section shall preclude the department from enact-
    31  ing or maintaining other programs to  reduce  greenhouse  gas  emissions
    32  from the transportation sector.
    33    § 4. This act shall take effect immediately.
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