Relates to production credit for production of biomethane

1 Co-sponsor

• Leroy Comrie

Title of bill

An act to amend the tax law, in relation to biofuel production credit for production of biomethane

Purpose

Relates to production credit for production of biomethane

Summary of provisions

Section 1 renumbers section 38-a to Section 28 of the tax law, as added by section 1 of part X of chapter 62 of the laws of 2006 that establishes a new credit of twenty-five cents per gallon for production of biomethane after the production of the first fifty thousand gallons per year presented to market

Section 2 defines the term "biomethane"

Section 3 amends Section 187-c of the tax law, as amended by section 2 of part K of chapter 59 of the laws of 2012, with regards to the biofuel production credit

Section 4 also amends Section 187-c of the tax law, as amended by section 15 of part S of chapter 59 of the laws of 2014, with regards to the biofuel production credit

Section 5 amends subdivision 38 of section 210 of the tax law, as amended by section 3 of part K of chapter 59 of the laws of 2012, with regards to the biofuel production credit

Section 6 amends subdivision (jj) of section 606 of the tax law, as amended by section 4 of part K of chapter 59 of the laws of 2012, with regards to the biofuel production credit

Section 7 amends subdivision 24 of section 210-B of the tax law, as added by section 17 of part A of chapter 59 of the laws of 2014, with regards to the biofuel production credit

Section 8 provides that this act shall take effect immediately.

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.

RNG slashes carbon emissions to near zero. This biomethane production tax credit will help improve the environment by making better use of waste and conserving natural resources. New York State's municipal waste stream could be reduced by nearly 30% through greater production of RNG.

Legislative history

2013-14: S.7452 (Gipson) - Referred to Investigations and Government Operations

Effective date

This act shall take effect immediately.