New York lawmakers and clean fuel advocates joined forces on Tuesday, May 27th to rally for a new legislation that aims to reduce greenhouse gas emissions from transportation by 20% within the next eight years. The Clean Fuel Standard Act of 2025, also known as S1343A/A472A, proposes a credit trading system that would provide incentives for using cleaner fuels and generate funds for electric vehicle infrastructure.
Under this proposal, all fuel companies, including providers, refiners, blenders, and electricity suppliers, would be required to lower the amount of greenhouse gas pollution produced per unit of fuel energy. This measure, known as carbon intensity, would be achieved through a credit trading system similar to those already in place in California, Oregon, and Washington. Providers who meet the emissions targets would be able to earn credits, which can then be sold to companies that do not meet the standards.
Transportation is currently responsible for over 34% of New York’s greenhouse gas emissions, making it the state’s largest source of pollution. State Senator Pete Harckham, chair of the Senate Environmental Conservation Committee, highlights the initial target of a 20% reduction by 2033. The legislation also requires a full lifecycle emissions assessment, which includes all stages of fuel production and consumption, such as growing crops for biofuels, refining, transporting, and burning the fuel.
The Department of Environmental Conservation will set specific reduction targets every five years beyond 2033, taking into account new technology and stricter climate requirements under the 2019 Climate Leadership and Community Protection Act. Credits will be generated by companies providing electricity for electric vehicles, renewable diesel, advanced biofuels, and renewable natural gas from farm waste. Traditional gasoline and diesel suppliers will have to buy credits to offset their environmental impact or face penalties.
The credit system is expected to generate over $1 billion annually, with 40% of that amount being allocated for clean transportation projects in disadvantaged communities. These projects include electric school buses, truck charging stations, and charging infrastructure for multi-family housing. According to Julie Tighe, president of the New York League of Conservation Voters, the funds generated through credit sales will directly support transportation electrification without any additional state spending. For example, the Metropolitan Transportation Authority would receive approximately $20,000 per electric bus annually.
Dairy farmer David Fisher from the New York Farm Bureau also supports the legislation, highlighting his operation’s production of renewable natural gas through anaerobic digestion of manure. He also notes that about 12% of New York’s cows produce renewable natural gas that could potentially replace diesel fuel. The bill also includes sustainable aviation fuel as a credit generator, as European regulations require planes to use renewable jet fuel instead of traditional petroleum.
Delta Airlines spokesperson Patricia Ornst endorses the legislation, stating that it would attract suppliers to New York and create market incentives.