The proposal would require fuel providers to lower the carbon intensity of transportation fuels across New York.
Albany, NY – New York lawmakers are advancing legislation that would establish a statewide “Clean Fuel Standard of 2026,” requiring transportation fuel providers to reduce greenhouse gas intensity across the sector by at least 20 percent by 2034.
The proposal, Assembly Bill A472B sponsored by Assemblymember Carrie Woerner, would amend the state’s environmental conservation law and direct the Department of Environmental Conservation to develop regulations governing the program in consultation with the New York State Energy Research and Development Authority.
Key Points
- The bill creates the “Clean Fuel Standard of 2026” to reduce transportation fuel emissions.
- Fuel providers would be required to lower greenhouse gas intensity by at least 20% by 2034.
- The program would use a credit trading system similar to low-carbon fuel standards used in other states.
The legislation targets the transportation sector, which lawmakers say accounts for more than 34 percent of New York’s annual greenhouse gas emissions. The program would apply to most transportation fuels used in the state, including gasoline, diesel alternatives, and electricity used to power electric vehicles.
Under the bill, aviation fuels would be exempt due to federal preemption rules, although sustainable aviation fuels could generate credits through an optional participation system.
Credit system and lifecycle emissions requirements
The clean fuel standard would operate through a market-based credit system. Fuel providers whose products fall below the required greenhouse gas intensity levels could earn credits, while providers exceeding the limits would need to purchase credits to meet compliance requirements.
The state would measure emissions based on the full lifecycle of fuels, including extraction, production, transportation, and final use by consumers. Regulators would also consider indirect emissions such as land-use changes associated with feedstock production.
The Department of Environmental Conservation would be required to establish reporting requirements and disclosure standards to verify lifecycle emissions data. Providers that fail to disclose required information could face penalties.
Regulations and implementation timeline
The legislation requires the Department of Environmental Conservation to develop the regulations within 24 months of the law taking effect.
State regulators would also evaluate similar programs in other states, including California’s low carbon fuel standard, and coordinate with other northeastern states to explore regional strategies for reducing transportation emissions.
The law would authorize registration fees for fuel providers to help offset the cost of administering the program.
Investment requirements for disadvantaged communities
The bill also directs electric utilities, state agencies, and public authorities to allocate 40 percent of earned credit value toward electrified transportation initiatives that benefit disadvantaged communities.
Eligible investments could include electric school buses, charging infrastructure for electric vehicles, electrification of drayage trucks, vehicle-sharing programs, and additional rebates or incentives for low-income residents.
The Department of Environmental Conservation would be required to report to the state legislature within two years after regulations are adopted, detailing implementation progress and greenhouse gas reductions achieved through the program.
