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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A964
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.
STATE OF NEW YORK
________________________________________________________________________
964
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. WOERNER, THIELE, SAYEGH, WILLIAMS, MAGNARELLI,
COLTON, STIRPE, WALLACE, CARROLL, STERN, REYES, FAHY, D. ROSENTHAL,
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, BRAUN-
STEIN, BURGOS, CLARK, PEOPLES-STOKES, JOYNER, BRONSON, JEAN-PIERRE,
RAJKUMAR, SIMPSON, RA, CRUZ, FALL, TAYLOR, K. BROWN, DURSO, DILAN,
KIM, BICHOTTE HERMELYN, BUTTENSCHON, CONRAD, DeSTEFANO, GIBBS, MIKU-
LIN, STECK -- read once and referred to the Committee on Environmental
Conservation
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.
LBD01696-02-3
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.
