Clean Transportation Standard

Page 172: "DEC and NYSERDA should evaluate and consider adopting a variation on a clean fuel standard that would, as described in more detail below, support the transition to electrification, expanded transit, and clean transportation alternatives, particularly in Disadvantaged Communities. A traditional clean fuel standard is a policy mechanism to facilitate decarbonization of transportation fuels by requiring fossil fuel providers to reduce the carbon content of the fuels they provide by either acquiring credits from providers of electricity for transportation use or other zero-carbon or lower-carbon fuels into the stream of commerce or by blending lower-carbon fuels into their fuel mixes. In New York, a variant of this policy, a “clean transportation standard,” would support transportation electrification as petroleum fuel providers finance the use of electricity for transportation use. Other fuels may be eligible to generate credits through the program subject to screening based on co-pollutant emissions, as described below. Electricity in New York is an increasingly low-carbon fuel as the State moves toward zero- emission electricity by 2040, as required by the Climate Act. A clean transportation standard should include consideration of how it might interact with other policy measures, especially economywide measures identified in this Scoping Plan. Based on benefit-cost analyses and interaction with other policies, DEC and NYSERDA should assess the viability, need for, and efficacy of the proposed clean transportation standard prior to commencing a regulatory process. This clean transportation standard design would improve on existing models via program design choices that align a standard with Climate Act goals and requirements. Any proposed standard should include the following elements: ▪ The program should be designed to ensure long-term electrification by instituting a long-term trajectory for carbon intensity reductions out through 2050, which would send clear price signals that indicate when combustion fuels would cease generating credits. ▪ The proposed clean transportation standard would also reward public transportation providers statewide for emission reductions from electrified transit, providing them with resources to accelerate zero-emission rolling stock and infrastructure, as well as improve service, particularly to underserved communities. ▪ The program could also offer public and nonprofit fleets “advance credits” upon purchase of ZEVs, reducing the upfront cost of these vehicles. ▪ To prioritize co-pollutant emission reductions in Disadvantaged Communities and benefit LMI households, the clean transportation standard should ensure that revenue generated from credits associated with home-charging of EVs is largely or wholly directed to electrification, improved transit, and other mobility alternatives to benefit Disadvantaged Communities and LMI households, with input from community representatives. One way to achieve this is by having the State generate these credits directly. ▪ To address the CJWG’s concerns, the clean transportation standard should also screen fuels based on their co-pollutant emissions, limiting credit generation to those fuels that, based on a rigorous analysis, including an analysis of peer-reviewed scientific research, and subject to public comment, have lower overall co-pollutant emissions than petroleum fuels. ▪ Program design could consider ways to support electrification of offroad fuel uses, often a disproportionately impactful source of air pollutants, particularly in Disadvantaged Communities. ▪ The policy could also be structured to allow aviation fuels to voluntarily opt into the program, reducing emissions in this challenging-to-electrify subsector. ▪ Decisions regarding the carbon intensity of alternative fuels would provide market signals that promote the use of those fuels that have a lower fuel cycle carbon intensity on a life cycle basis."