Cut Transportation Fuel Emissions

Section 2. Amends the environmental conservation law to create a new Section 19-03292 require the Department of Environmental Conservation, in consultation with the New York State Energy, Research and Development Authority, to promulgate regulations to create a low carbon fuel stand- ard in New York State, with priority given to implementing regulations relative to the heavy-duty transportation sector consisting of vehicles with the classification of six or higher as classified by the Federal Highway Administration. The legislation further requires that the regu- lations include coordination with other northeastern states to promote regional solutions to reduce GHG emissions. It is intended that this program 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.

Section 3. 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 is almost entirely dependent on one energy source for its transportation economy, relying on petroleum-based fuels to meet a substantial percent of its transportation needs, particularly the trans- portation needs for medium and large trucks. Increased concentrations of ground-level ozone that is directly related to GHG emissions can promote respiratory illness in children and the elderly and exacerbate pre-ex- isting respiratory illnesses. This can result in significant hospitali- zation 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 and 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 own zone, 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, this is not enough to address these threats from the transportation sector.

In addition to environmental benefits from the reduction in GHG emis- sions, there are significant economic benefits associated with greater fuel diversity and innovation towards low emissions solutions in the transportation sector. New York's dependence on a single type of trans- portation fuel whose price is highly volatile imperils our economic security, endangers our jobs, and jeopardizes our industries. Diver- sification of the sources of transportation fuel will help 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 and do not promote new, innovative technologies that take into account the full lifecycle of transportation fuels. One of the shining examples from the California low carbon fuel standard is the promotion of bio methane, also known as renewable natural gas (RNG), as a transportation fuel. This enables the agriculture industry to produce bio methane through anaerobic digestion and match that production with an off take partner to fuel vehicles, particularly the large tractor-trailers that continue to drive our economy. Those vehicles, in turn, are using the Cummins Westport Near Zero engine, produced in Jamestown, New York. Together, these technologies reduce GHG emissions by approximately 125%. This is one of the rare examples of how an innovative technology can be carbon net negative.

Farmers in New York State have struggled with anaerobic digestion because the return on the production of electricity does not pay for the digestion process. A low carbon fuel standard in New York State would allow us to manage carbon emissions from the agricultural sector and reduce carbon emissions in the transportation sector at the same time. This is just one example of innovation that can be promoted through a low carbon fuel standard in New York State.

Legislative history

None

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

This bill would take effect immediately