Legislation currently under consideration by the New York legislature aims to establish a clean fuel standard (CFS) that would reduce the greenhouse gas (GHG) intensity from on-road transportation by 20% by 2033.

The bill, S01343A, was introduced in the New York Senate in January and is currently under consideration by the Finance Committee. Companion legislation, A00472, was introduced in the New York Assembly in January and is currently under consideration by the Environmental Conservation Committee. 

In advance of 2033, and every five years thereafter, the bill directs the New York Department of Environmental Protection to promulgate regulations determining the minimum additional GHG intensity reduction to be achieved over the following five years. Further reductions are to be implemented based upon advances in technology and to support achieving the requirements of New York’s GHG reduction goals. 

Under the bill, the CFS would apply to all providers of transportation fuels in New York, including electricity. Fuel providers include, but are not limited to, all refineries, blenders, producers or importers of transportation fuels, or enablers of electricity used as transportation fuel. The CFS would operate via a credit-based market system. 

Aviation fuel would be exempt from the CFS, but sustainable aviation fuel (SAF) would be eligible to generate credits on an opt-in basis to help encourage development of a viable SAF market. 

The bill would require CFS regulations to be published within 24 months. The structure of the CFS would take into consideration low carbon fuel standards adopted in other states and the recommendations New York’s scoping plan, which was established by the Climate Leadership and Community Protection Act and outlines the state’s strategy for meeting GHG reduction goals. In addition, the program would be designed in coordination with other Northeastern states to promote regional reductions in GHGs. 

A full copy of the legislation is available on the New York Assembly website.