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.
California's Low Carbon Fuel Standard led to a boom in investments in fuels made from non-petroleum feedstocks.
Canada has also implemented a Clean Fuel Standard which is set to take effect later this year.
Deborah Glick, Laura Sanicola, Nick Zieminski
U.S ., New York Senate, decarbonizing, Thomson
New York, U.S . East Coast, United States, York, West Coast, Washington and Oregon, Canada