Provides that number 2 heating oil sold in the state shall have not more than 500 parts per million of sulfur

1 Co-sponsor

• George D. Maziarz

BILL NUMBER:S4523A

Title of bill

An act to amend the environmental conservation law, in relation to the sulfur content of number two heating oil

Purpose of the bill

To amend chapter 203 of the laws of 2010 to require the sulfur content of all number two home heating oil in New York to not have a sulfur content greater than 500 ppm (parts per million) by July 1, 2014.

Summary of specific provisions

Amends the Environmental Conservation Law by adding a new section 19-0325 as follows:

(1) Require that all 2 heating oil sold in New York State after July 1, 2014 contain a sulfur content not exceeding 500 parts per million.

(2) This act shall take effect immediately.

Justification

This bill brings about critical sulfur reductions for 2 home heating oil while taking appropriate measures to ensure that a potentially disastrous disruption in supply will not occur by extending the lead time to July 1, 2014.

Under the current July 1, 2012 timeline, 2 home heating oil is at risk for supply constriction. Such a disruption would further drive up the cost of this fuel; impacting its mostly rural consumer base, of which many are close to, or below, the poverty line.

Engineering evaluations predict that installation of even more processing capacity at refineries to adopt a low sulfur standard for heating oil will not take less than four years. The federal permitting process alone will take almost two years. Failure to provide sufficient lead time for the adoption of the new standard carries a significant risk for shortfalls in supply, even under the best of circumstances.

In addition, a recent study estimated that the anticipated shortfall would result in an increase in the price of heating oil and diesel fuel by 20 to 30 cents a gallon -- costing New York consumers as much as $1 billion-- and that is assuming a mild winter. Consumers could pay up to 60 cents more for heating' oil and diesel fuel during a winter cold snap if refineries have not yet been able to meet the new processing standards.

This measure strikes an appropriate balance of setting New York on a timetable to achieve cleaner air and reduce the sulfur content of home heating oil while assuring that supplies of both the heating oil and transportation diesel will be available during the transition, thereby protecting New York consumers from wild and unpredictable spikes in the cost of these necessary commodities.

Prior legislative history

New Bill.

Fiscal implications

Potential cost savings to State and local governments by allowing for a more reasonable time period to implement the Sulfur content requirements for 2 heating oil as outlined in this legislation.

Effective date

This act shall take effect immediately.