S 10668: Establishes the indigenous clean biofuel innovation and resource partnership pilot program to develop and deploy low-carbon bio-blended fuels in alignment with the state's clean fuel standards.

  
  STATE OF NEW YORK ________________________________________________________________________ 10668  IN SENATE July 24, 2026 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the environmental conservation law, in relation to establishing the indigenous clean biofuel innovation and resource partnership pilot program to develop and deploy low-carbon bio-blended fuels in alignment with the state's clean fuel standards; and making an appropriation therefor The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. 1. The legislature hereby finds and 2 declares that: 3 (a) The transition to a low-carbon energy economy requires the rapid 4 deployment of cleaner fuels that can reduce greenhouse gas emissions 5 while maintaining energy reliability and affordability; 6 (b) New York state has committed to aggressive emissions reductions 7 under the climate leadership and community protection act, including the 8 decarbonization of the transportation and heating sectors; 9 (c) Low-carbon fuel strategies, including biodiesel and renewable 10 bio-blended fuels, provide immediate and scalable pathways to reduce 11 emissions from existing infrastructure without requiring full system 12 replacement; 13 (d) Regional oil and gas resources, when combined with renewable 14 biological feedstocks and advanced refining processes, can be trans- 15 formed into cleaner-burning, lower-emission fuels; 16 (e) Indigenous Nations are essential partners in energy development 17 and environmental stewardship and must have equitable participation in 18 resource development, production, and economic benefit-sharing; and 19 (f) The development of in-state clean fuel production capacity will 20 strengthen energy independence, create jobs, and position New York as a 21 national leader in next-generation fuel innovation. 22 2. It is therefore the intent of the legislature to establish a pilot 23 program that: 24 (a) integrates natural resource utilization with renewable biofuel 25 innovation; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16155-01-6 
 S. 10668 2 1 (b) supports indigenous-led participation and ownership; 2 (c) aligns with clean fuel standards and biodiesel policy goals; and 3 (d) accelerates deployment of low-carbon fuels across New York state. 4 § 2. The environmental conservation law is amended by adding a new 5 section 19-0333 to read as follows: 6 § 19-0333. Indigenous clean biofuel innovation and resource partnership 7 pilot program. 8 1. For the purposes of this section, the following terms shall have 9 the following meanings: 10 (a) "pilot program" means the indigenous clean biofuel innovation and 11 resource partnership pilot program; 12 (b) "bio-blended fuel" means a fuel composed of: 13 (i) conventional petroleum-based fuels; and 14 (ii) renewable biological feedstocks, including biodiesel, renewable 15 diesel, or other low-carbon fuel components; 16 (c) "low-carbon fuel" means a fuel that achieves a measurable 17 reduction in lifecycle greenhouse gas emissions compared to conventional 18 petroleum fuels; 19 (d) "participating Indigenous Nations" means federally recognized or 20 state-recognized Native American tribes with historical, ancestral, or 21 present ties to regions within New York state; and 22 (e) "clean fuel standard" means any state program designed to reduce 23 the carbon intensity of transportation or heating fuels, including 24 programs administered or developed by the department. 25 2. There is hereby established the indigenous clean biofuel innovation 26 and resource partnership pilot program. The pilot program shall support 27 the development and deployment of low-carbon bio-blended fuels through- 28 out New York state. The pilot program shall be administered jointly by: 29 (a) the state of New York; 30 (b) participating Indigenous Nations; and 31 (c) private sector and research partners. 32 3. (a) The state shall engage in formal government-to-government 33 consultation with participating Indigenous Nations. Such consultation 34 shall include: 35 (i) agreements related to resource use and development; 36 (ii) ownership and revenue-sharing structures; and 37 (iii) siting of production and refining facilities. 38 (b) Participating Indigenous Nations shall have meaningful authority 39 in: 40 (i) project design and development; 41 (ii) operational oversight; and 42 (iii) long-term economic participation. 43 4. The pilot program shall include, but not be limited to: 44 (a) fuel innovation and production, including: 45 (i) the development of bio-blended fuels combining: 46 (A) natural gas or petroleum derivatives; and 47 (B) biodiesel and renewable feedstocks including waste oils, agricul- 48 tural byproducts, and algae-based fuels; and 49 (ii) investment in refining and blending infrastructure within New 50 York state; 51 (b) alignment with clean fuel standards, including: 52 (i) integration with emerging clean fuel standard frameworks; 53 (ii) lifecycle carbon intensity measurement and reduction targets; and 54 (iii) certification pathways for qualifying low-carbon fuels; 55 (c) biodiesel and renewable fuel expansion, including: 56 (i) support for existing biodiesel markets and legislation; 
 S. 10668 3 1 (ii) incentives for increased blend levels in heating oil and trans- 2 portation fuels; and 3 (iii) expansion of renewable diesel availability; 4 (d) infrastructure and deployment, including: 5 (i) distribution through existing fuel networks; and 6 (ii) use in municipal fleets, public transit systems and heating 7 applications in residential and commercial buildings; 8 (e) research and development, including: 9 (i) partnerships with universities and national laboratories; and 10 (ii) innovation in fuel efficiency, emissions reduction and advanced 11 blending technologies; and 12 (f) workforce development, including: 13 (i) training programs prioritizing indigenous communities and local 14 workers; and 15 (ii) job creation in fuel production, logistics and distribution, and 16 system maintenance. 17 5. All fuels developed under the pilot program shall demonstrate meas- 18 urable lifecycle greenhouse gas reductions. The department shall estab- 19 lish carbon intensity benchmarks consistent with the climate leadership 20 and community protection act. Preference shall be given to fuels that: 21 (a) reduce particulate emissions; 22 (b) improve air quality in disadvantaged communities; and 23 (c) support near-term emissions reductions. 24 6. (a) The department shall submit an annual report to the governor 25 and the legislature no later than December first of each year. The 26 report shall include the: 27 (i) emissions reductions achieved; 28 (ii) volume of clean fuel produced and deployed; 29 (iii) economic and workforce impacts; and 30 (iv) indigenous participation and ownership outcomes. 31 (b) A comprehensive program evaluation shall be conducted after five 32 years. 33 7. Following a comprehensive program evaluation, the department may 34 expand the program statewide and integrate it fully into clean fuel 35 standard programs. 36 § 3. The sum of forty million dollars ($40,000,000), or so much there- 37 of as may be necessary, is hereby appropriated to the department of 38 environmental conservation out of any moneys in the state treasury in 39 the general fund to the credit of the state purposes account, not other- 40 wise appropriated, and made immediately available, for the purpose of 41 carrying out the provisions of this act. Such moneys shall be payable 42 on the audit and warrant of the comptroller on vouchers certified or 43 approved by the commissioner of the department of environmental conser- 44 vation in the manner prescribed by law. 45 § 4. This act shall take effect immediately.