Relates to bioheating fuel

Title of bill

An act to amend the environmental conservation law and the tax law, in relation to bioheating fuel

Purpose

This bill will require all heating oil sold in New York State to contain at least two percent biodiesel no later than July 1, 2016, and will restructure the existing tax structure to incentivize the use of at least five percent biodiesel.

Summary of provisions

This bill would:

Require, on and after October 1, 2016, all heating oil sold for use in any building within the counties of Nassau. Rockland, Suffolk, Westchester, and the city of New York to contain at least two percent biodiesel;

Require, on and after July 1, 2017, all heating oil sold for use in any building in the State to contain at least two percent biodiesel;

Authorize the Governor, by executive order, to suspend biodiesel requirements temporarily, after consultation with NYSERDA and DEC, and issuing a finding that meeting the requirements is not feasible due to lack of adequate supply of biodiesel or undue financial hardship to consumers; and,

Modify the Personal Income and Franchise Tax provisions related to bioheating fuel to provide credits only when the biodiesel component is at least five percent.

Justification

Bioheating standards will result in less air pollution, a more efficient fuel, reduce dependence on foreign energy sources, and open up new markets for New York businesses and farmers. Biodiesel is made by "refining" fats and oils such as vegetable oil, waste grease, and used cooking oils. It is anticipated that New York will derive major economic impact from the production, processing, and the construction of biodiesel facilities. In addition, a new biodiesel content requirement will provide an incentive for New York farmers to increase the production. As a result, increasing the use of biodiesel will create new markets for agricultural products, create more local jobs, reduce emissions and help protect water quality. This fuel also has the benefit of higher efficiency and of literally being "home grown" to help reduce our dependence on foreign oil.

Prior legislative history

A.8435 of 2014 (Sweeney): Passed Assembly

Fiscal implications for state and local governments

This bill is intended to be revenue neutral.

Effective date

This act shall take effect immediately.