Relates to the use of ultra low sulfur diesel fuel and the best available technology by the state

Title of bill

An act to amend the environmental conservation law, in relation to the use of ultra low sulfur diesel fuel and best available technology by the state

Purpose

To exempt private entities that perform public work from requirements to equip heavy-duty diesel vehicles with the best available retrofit technology for reducing the emission of pollutants, and to extend the date of state compliance to the Diesel Emissions Reduction Act of 2006 (DERA), as well as the useful life waiver and the reporting requirement.

Summary of provisions

Section 1 amends section 19-0323 of the environmental conservation law to exempt private sector heavy-duty diesel vehicles from emissions-reducing retrofitting technology; extends the date of compliance for vehicles owned by, operated by or leased by the state to December 31, 2018; extends the expiration date of waivers issued by the department of environmental conservation to December 31, 2021; and extends the date of first reporting by the commissioner on the use of best available retrofitting technology to January 1, 2019. Section 2 provides the effective date.

Existing law

DERA applies to all applicable heavy-duty diesel vehicles owned by state agencies or public authorities, as well as to private contractors who do work on public job sites pursuant to contracts with the state. Along with requiring the use of ultra low sulfur diesel fuel, DERA requires all applicable heavy-duty diesel vehicles to be retrofitted with diesel particulate devices to reduce the emission of sulfur dioxide, nitrogen oxide and other pollutants by December 31, 2016.

Justification

While reducing the emissions of various pollutants is certainly a worthy goal, the best available technology for retrofitting heavy-duty diesel vehicles has proven to be prohibitive for many businesses in New York State. With costs ranging from $15,000-$60,000 per vehicle, according to estimates, this presents an additional challenge for businesses that are already struggling with the ever-increasing costs associated with taxes, insurance and workers' compensation premiums, energy and fuel, and other production costs. Exempting all private sector vehicles will relieve many businesses from this sizeable investment that they are simply unable to pay and would force them to close their doors.

The department of transportation (DOT) still has 847 noncompliant vehicles and the metropolitan transportation authority (MTA) has 218, according to the DOT and MTA, respectively, so more time is needed to fully comply with DERA retrofitting requirements. This is very important considering the astronomical penalties: non-compliant vehicles can be charged $18,000 for the first violation and an additional $15,000 for each day of non-compliance and $26,000 for a second violation, with an additional $22,500 per day.

Legislative history

Extensions have been provided in previously-enacted budgets, including S.2008B, Part II (2015); S.6357D, Part DD (2014); S.2608D, Part U (2013); S.6258D, Part EE (2012); and S.2810C, Part BB (2011). FISCAL IMPLICATIONS :

The bill would likely result in significant savings to the state.

Effective date

Immediate.