A00964 Summary:

COSPNSRThiele, Sayegh, Williams, Magnarelli, Colton, Stirpe, Wallace, Carroll, Stern, Reyes, Fahy, Rosenthal D, Paulin, Jones, Lupardo, Rivera, Dickens, 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, Davila, Slater, Bendett, Alvarez, Darling, Chandler-Waterman, O'Donnell
Add §19-0333, En Con L
Establishes the clean fuel standard of 2024; provides such standard is intended to reduce carbon intensity from the on-road transportation sector by 30% by 2032, with further reductions to be implemented based upon advances in technology.
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A00964 Actions:

01/11/2023referred to environmental conservation
01/03/2024referred to environmental conservation
01/12/2024amend (t) and recommit to environmental conservation
01/12/2024print number 964a
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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 2024"   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 a new 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 communit ies. 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.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): Section 1 is amended to clarify the legislative findings and declara- tions. Section 3 is amended to clarify portions of § 19-0333 and to make technical changes.   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,
          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:
     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-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 964--A                           2
     1  tion emissions of air pollutants and greenhouse gases and is recommended
     2  by the Intergovernmental Panel on Climate Change as an important pathway
     3  for holding global warming to 1.5 degrees Celsius.
     4    3.  The  Climate Leadership and Communities Protection Act directs the
     5  Department of Environmental Protection to  promulgate  regulations  that
     6  will reduce greenhouse gas emissions, including from on-road vehicles.
     7    4.  New York signed a 15-state MOU to develop an action plan to reduce
     8  toxic diesel emissions from medium and heavy-duty vehicles by 2050.
     9    5.  A  clean  fuels  standard  regulation  would  promote   innovation
    10  production  and use of non-petroleum fuels that reduce vehicle and fuel-
    11  related air pollution that  endangers  public  health  and  welfare  and
    12  disproportionately  impacts  disadvantaged communities. These reductions
    13  in air pollution would be paid for by the fossil  fuel  industry  rather
    14  than ratepayers.
    15    § 2. Short title. This act may be known and may be cited as the "clean
    16  fuel standard of 2024".
    17    §  3.  The  environmental  conservation law is amended by adding a new
    18  section 19-0333 to read as follows:
    19  § 19-0333. Clean fuel standard.
    20    (1) A clean fuel standard is hereby established. The clean fuel stand-
    21  ard is intended to reduce carbon intensity from the on-road  transporta-
    22  tion  sector  by  no less than thirty percent by two thousand thirty-two
    23  and one hundred percent by two thousand fifty.  In advance of two  thou-
    24  sand  thirty-two  and  every five years thereafter, the department shall
    25  promulgate  regulations  determining  the   minimum   carbon   intensity
    26  reduction to be achieved over the following five years to be implemented
    27  based  upon advances in technology and to support achieving the goals of
    28  the climate action plan established pursuant to section 75-0103 of  this
    29  chapter  as  determined  by  the commissioner.   Fuels which provide net
    30  human health benefits through overall air quality improvements  relative
    31  to diesel and gasoline usage shall be eligible.  Aviation fuels shall be
    32  exempted  from  the  clean  fuel standard due to federal preemption, but
    33  sustainable aviation fuel shall be eligible to generate  credits  on  an
    34  opt-in  basis  to  help  encourage  development  of a viable sustainable
    35  aviation fuel market.
    36    (2) The clean fuel standard shall apply to all providers of  transpor-
    37  tation fuels, including electricity, in New York, shall be measured on a
    38  full  fuels  lifecycle basis and may be met through market-based methods
    39  by which providers exceeding the performance required by the clean  fuel
    40  standard shall receive credits that may be applied to future obligations
    41  or  traded to providers not meeting the clean fuel standard.  The gener-
    42  ation of  credits  must  use  a  lifecycle  emissions  performance-based
    43  approach that is technology and feedstock neutral to achieve fuel decar-
    44  bonization.  In  addition  to  fuel  decarbonization,  credits generated
    45  through the use of clean fuel types will  help  promote  innovation  and
    46  investment  in  such clean fuels.  For purposes of this section the term
    47  "providers" shall include, but shall not be limited  to,  all  refiners,
    48  blenders, producers or importers of transportation fuels, or enablers of
    49  electricity  used  as  transportation fuel, "carbon intensity" means the
    50  quantity of lifecycle greenhouse gas emissions per unit of fuel  energy,
    51  and  "full  fuels lifecycle" means the aggregate of greenhouse gas emis-
    52  sions, including direct emissions and significant indirect emissions  as
    53  determined  by the commissioner, such as significant emissions from land
    54  use changes. The full fuels lifecycle shall be assessed annually at  all
    55  stages of fuel and feedstock production and distribution, from feedstock
    56  generation  or  extraction through the distribution and delivery and use

        A. 964--A                           3
     1  of the finished fuel by the ultimate consumer,  using  the  most  recent
     2  version of the Argonne National Labs GREET model, or a derivation there-
     3  of that reflects the use of clean fuels in New York. In calculating full
     4  fuels  lifecycle  greenhouse gas emissions, the mass values for all non-
     5  carbon-dioxide greenhouse gases must be adjusted to  account  for  their
     6  relative  global  warming  potentials  compared to an equivalent mass of
     7  carbon dioxide over an integrated twenty-year time frame after emission.
     8  This conversion shall use the most appropriate  conversion  relative  to
     9  global warming potentials as determined by the commissioner based on the
    10  best available science.
    11    (3)  Within  twelve months following adoption of the clean fuel stand-
    12  ard, the commissioner, in consultation with the New  York  state  energy
    13  research  and development authority, shall promulgate regulations estab-
    14  lishing a clean fuel standard with performance objectives  to  implement
    15  subdivision one of this section. The clean fuel standard shall take into
    16  consideration  the  low  carbon  fuel standard adopted in California and
    17  other states, may rely upon the carbon intensity of  values  established
    18  for  transportation  fuels in such states and shall include coordination
    19  with other Northeastern states to promote regional reductions in  green-
    20  house gas emissions.
    21    (4)  The  regulations  adopted  pursuant to this section shall include
    22  fees for the registration of providers to offset  the  costs  associated
    23  with implementation of the clean fuel standard.
    24    (5)  Electric utilities, state agencies, and authorities, in consulta-
    25  tion with the climate justice working group and the climate action coun-
    26  cil established pursuant to section 75-0103 of this chapter,  shall,  to
    27  the extent practicable, invest or direct available and relevant program-
    28  matic  resources  to  provide  forty percent of such electric utility's,
    29  state agency's, or  authority's  overall  credit  value  on  electrified
    30  transportation  programs,  projects,  or investments to directly benefit
    31  disadvantaged communities, including, but not limited  to,  electrifica-
    32  tion and battery swap programs for school or transit buses; electrifica-
    33  tion  of  drayage trucks; investment in public electric vehicle charging
    34  infrastructure and electric vehicle charging infrastructure in multi-fa-
    35  mily residences; investment in electric mobility solutions such as elec-
    36  tric vehicle sharing and ride hailing programs; multilingual  marketing,
    37  education,  and  outreach designed to increase awareness and adoption of
    38  electric vehicles; and additional rebates and incentives for  low-income
    39  individuals beyond existing local, federal, and state rebates and incen-
    40  tives.
    41    (6)  Within  twenty-four  months following the adoption of regulations
    42  implementing a clean fuel standard, the commissioner shall report to the
    43  legislature regarding the implementation of the program, the  reductions
    44  in  greenhouse  gas  emissions that have been achieved through the clean
    45  fuel standard and targets for future reductions in greenhouse gas  emis-
    46  sions from the transportation sector.
    47    (7)  Nothing in this section shall preclude the department from enact-
    48  ing or maintaining other programs to  reduce  greenhouse  gas  emissions
    49  from the transportation sector.
    50    § 4. This act shall take effect immediately.
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