New York lawmakers weigh clean fuel standard as legislative session ends

By Laura Sanicola

(Reuters) – New York lawmakers are considering legislation on Friday that would create the first market for low-carbon fuels on the U.S. East Coast in order to help the state reach its decarbonization goals.

The legislation, modeled off of California’s Low Carbon Fuel Standard, aims to reduce carbon intensity from the on-road transportation sector in New York by 20% by 2031.

If passed, it would be the second-largest clean fuel standard in the United States, surpassed only by California’s.

The New York Senate passed the Clean Fuel Standard on Thursday, the first time it had done so despite similar legislation being produced in prior sessions.

Members of the state assembly are likely to vote on the legislation Friday, one day after the legislature was meant to adjourn.

However, key Assemblymember Deborah Glick (D-Manhattan) has been voicing opposition to the standard for continuing to allow the combustion of fuels, sources aware of the discussions told Reuters.

In similar programs, cleaner fuel producers generate credits that can be sold to state polluters in order for them to meet state requirements.

California’s Low Carbon Fuel Standard led to a boom in investments in fuels made from non-petroleum feedstocks.

The New York standard would apply to all providers of transportation fuels, including electricity, and reward producers for decarbonizing.

Similar legislation enacting clean fuel standards failed in New York and various other states in previous years, but has passed in the West Coast states of Washington and Oregon.

Canada has also implemented a Clean Fuel Standard which is set to take effect later this year.