Provides that diesel fuel that contains a concentration of sulfur that is less than or equal to 15 parts per million shall not be sold unless it includes biodiesel

BILL NUMBER:S2272A

Title of bill

An act to amend the environmental conservation law and the agriculture and markets law, in relation to the sale of diesel fuel

Purpose or general idea of bill

This bill amends the agriculture and markets law to encourage the growth of the biodiesel industry in New York State by requiring the use of biodiesel in low sulfur diesel fuel. The provisions of the bill do not take effect until New York State has annual production capacity of 12 million gallons of biodiesel and either the Federal government has reduced the tax on biodiesel fuel, or it is after June 30, 2015.

Summary of specific provisions

Section 1 adds the definition of biodiesel to the Environmental Conservation Law.

Section 2 requires the Commissioner of Environmental Conservation to cooperate with the Department of Agriculture and Markets on the efficient transition to the use of biodiesel in the State.

Section 3 adds the definition of biodiesel to the Agriculture and Markets law.

Section 4 requires the use of biodiesel as a lubrication additive in diesel fuel with a sulfur content lower than 15 parts per million; only if the Commissioner of Agriculture and Markets has certified that the annual production capacity of biodiesel in the State exceeds 12 million gallons, and either the Federal government reduces the tax on diesel fuel containing biodiesel or the date of June 30, 2014 has passed.

Justification

In June 2006, the Federal Environmental Protection Agency began phasing in for the transportation sector the use of Ultra Low Sulfur Diesel Fuel (ULSD), fuel containing not more than 15 parts per million of sulfur. The ULSD must replace sulfur with an additive to help lubricate the diesel engines or the engines will be damaged, substantially reducing their useful life.

Current technology provides two equally good additives for lubrication. One is a synthetic made from a petroleum based product. The other is 100t biodiesel, made from agricultural products or waste food greases. Both additives can be produced for approximately the same price.

This legislation will provide the incentive for the construction of biodiesel refineries in New York State to meet the demand foi lubri- cation additives. Investors are prepared to build such plants as long as there are assurances in the demand of biodiesel. Passage of this legislation will create a demand in excess of 25 million gallons of 100% biodiesel in New York State alone.

The use of biodiesel as an additive will make ULSD an even more environmentally friendly product and will ensure that Federally designated non-attainment areas, such as metropolitan New York City, have the cleanest possible fuel for vehicles.

Prior legislative history

S.7528 of 2004; Passed Assembly S.4470 of 2005/2006; Referred to Environmental Conservation S.3838 of 2007/2008; Referred to Environmental Conservation S.996 of 2009/2010: Referred to Environmental Conservation S.2615A of 2011/2012; Referred to Environmental Conservation

Fiscal implications

None

Effective date

This act shall take effect immediately, with provisions.