Relates to development of biomethane as a fuel alternative and creates the biomethane fuel incentive fund; appr

Summary of provisions

Section 1 amends the public authorities law by adding a new section 1884 to allow the New York state energy research and development authority to establish a biomethane grant program

Section 2 adds a new subdivision 14 to Section 351 of the public authorities law to define "biomethane"

Section 3 adds a new section 99-w to the state finance law to create the Biomethane fuel incentive fund

Section 4 amends Section 1148 of the tax law, as amended by section 57 of part HH of chapter 57 of the laws of 2013

Section 5 adds a new subsection ccc to Section 606 of the tax law that creates an alternative fuel credit for installation or conversion of fueling stations

Section 6 adds a new clause (xli) to subparagraph (B) of paragraph 1 of subsection (i) of Section 606 of the tax law

Section 7 adds a subdivision 50 to section 210 of the tax law that outlines the requirements for the alternative fuel credit for installation or conversion of fueling stations

Section 8 adds a new section 187-t to the tax law that also outlines the requirements for the alternative fuel credit for installation or conversion of fueling stations

Section 9 appropriates eighty million dollars ($80,000,000), or so much thereof as maybe necessary and outlines the distribution of those funds

Section 10 states that this act shall take effect 180 days after it shall become law, provided, however, that the commissioner of taxation and finance is authorized on and after the date that the act shall become law to adopt and amend rules or regulations to properly implement the provisions of this act

Justification

Renewable Natural Gas, also known as RNG or biomethane, is chemically identical to fossil natural gas but much cleaner, and the first commercially viable, sustainable transportation fuel that can greatly

reduce consumption of diesel fuel. RNG is made from biogases that emit as organic waste that break down in environments with no air. It is produced from many biomass and biogas sources including municipal wastewater, landfill gas, and solid waste. It is a renewable fuel that can be used from light-duty vehicles to heavy-duty freight trucks. Buses and trucks make up just 4% of all vehicles but they use 23% of all highway fuel that is almost all high-carbon diesel produced from foreign sources of oil. With today's technologies, organic wastes thrown away daily in cities and towns in New York State could be turned into fuel. National estimates are that organic wastes could displace 16% of all diesel fuel consumed in the United States.

New York State's more than 2.5 million buses and trucks consume close to 1.1 billion gallons of on-highway diesel fuel annually. This fuel constitutes a transfer of wealth of more than $4 billion to out-of-state and foreign entities. New York State has the opportunity to act now to create new jobs and empower New York State's economy. The cost of this grant program will be paid for many times over by the new money that will stay in New York State. This is a sound investment that is poised to provide great economic and environmental returns for all New Yorkers.

Legislative history

This is a new bill.

Fiscal implications

This bill would appropriate eighty million ($80,000,000.00) from the general fund for grants and tax credits to create the jobs of tomorrow in the renewable energy sector and reduce the amount of money New Yorkers send to foreign entities for their fuel.

Effective date

This act shall take effect 180 days after it shall become law.