What's happening
This bill reduces license and surcharge fees for petroleum transferred at facilities near state borders if exported out of state.
Why it matters
Reduces petroleum licensing and surcharge fees for facilities near state borders. By lowering these costs for facilities within one mile of an out-of-state equivalent, the bill aims to make New York facilities more competitive with neighboring states, potentially keeping business and jobs from moving out of state.
Encourages petroleum exports through New York rather than neighboring states. The fee reductions only apply if the petroleum is exported out of New York, which could incentivize companies to route exports through New York facilities rather than diverting them to out-of-state locations, possibly increasing local economic activity.
Limits fee reductions to specific circumstances. The lower fees do not apply universally but are targeted to situations where competition from a nearby out-of-state facility exists and the product is ultimately shipped out of New York, focusing the financial impact on areas most at risk of losing business.
May have implications for state revenues and environmental funds. As license and surcharge fees support environmental remediation funds, reducing them for certain transfers could decrease the resources available for spill response or environmental protection unless offset by increased volume or other revenue sources.
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Who cares
Headline styles
Lower Oil Export Fees
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to environmental conservation
- Returned to senate
- Died in assembly
- Referred to environmental conservation
- Delivered to assembly
- Passed senateVote 36–26
- Ordered to third reading cal.1864
- Reported and committed to rules
- Committee discharged and committed to environmental conservation
- Referred to cultural affairs, tourism, parks and recreation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Lower Oil Export Fees
In Assembly Committee · Environmental Conservation · Sponsor Michael Cusick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2640
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sens. LANZA, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Cultural Affairs, Tourism, Parks and Recreation
AN ACT to amend the navigation law, in relation to license fees per barrel of petroleum
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 4 of section 174 of the navigation law, as amended by section 1 of part X of chapter 58 of the laws of 2015, is amended to read as follows:
(a) The license fee shall be nine and one-half cents per barrel transferred, unless the major facility is located within one mile of a facility in an adjoining state, which if such facility in another state was located in this state would be a major facility, then such fee shall be one cent per barrel transferred, provided, however, that the fee on any barrel, including any products derived therefrom, subject to multiple transfer, shall be imposed only once at the point of first transfer. Provided further, the license fee for major facilities that (i) transfer barrels for their own use, and (ii) do not sell or transfer the product subject to such license fee, shall be eight cents. In each fiscal year following any year in which the balance of the account established by paragraph (a) of subdivision two of section one hundred seventy-nine of this article equals or exceeds forty million dollars, no license fee shall be imposed unless (a) the current balance in such account is less than thirty-five million dollars or (b) pending claims against such account exceed fifty percent of the existing balance of such account. In the event of either such occurrence and upon certification thereof by the state comptroller, the administrator shall within ten days of the date of such certification reimpose the license fee, which shall take effect on the first day of the month following such relevy. The rate may be set at less than nine and one-half cents per barrel transferred if
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02243-01-7
S. 2640 2
the administrator determines that the revenue produced by such lower rate shall be sufficient to pay outstanding claims against such account within one year of such imposition of the license fee. Should such account exceed forty million dollars, as a result of interest, the administrator and the commissioner of environmental conservation shall report to the legislature and the governor concerning the options for the use of such interest. The fee established by this paragraph shall not be imposed upon any barrel which is transferred to a land based facility but thereafter exported from this state for use outside the state and is shipped to facilities outside the state regardless of whether the delivery or sale of such petroleum occurs in this state.
§ 2. Subdivision 4 of section 174 of the navigation law is amended by adding a new paragraph (e) to read as follows:
(e) Notwithstanding paragraph (d) of this subdivision, the surcharge established by paragraph (b) of this subdivision shall be one and onehalf cents per barrel for any barrel that is transferred into a major facility located within one mile of a facility in an adjoining state, which if such facility in another state was located in this state would be a major facility, and thereafter exported from this state for use outside the state as described by paragraph (a) of this subdivision.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the navigation law, in relation to license fees per barrel of petroleum
Purpose or general idea of bill
To establish a more competitive level playing field for certain oil storage facilities located near out of state locations.
Summary of specific provisions
Section 1 - Amends the navigation law by restoring oil spill fund licensing fees to pre-2015 levels for certain storage facilities.
Section 2 - Amends the navigation law by restoring the credit. for barrels of product transferred through a facility in New York and then exported out of state for certain storage facilities.
Justification
For far too long, New York's working families and businesses have suffered from a disproportionate and unfair taxation system wherein competitive interests in New Jersey have an overwhelming advantage. Nowhere is there a more egregious example of this disproportionality than the ever-increasing bridge tolls in and out of New York City, particularly on Staten Island.
As a result of a dramatic increase of oil-by-rail shipments, in 2015 a new state law chanced the was in which the state's so-called "Oil Spill Fund" is funded by increasing license fees across the state for facili- ties that transfer and store petroleum products. The stated intent of the new law mitigate risk associated with the volume of crude oil being transported through New York by rail and create a funding stream for first responder training and equipment associated with the shipment of oil by rail.
The vast amount of crude oil storage facilities are located upstate, and none are located within the New York City Metropolitan area. The new fee increase aims to address problems created by upstate crude oil trans- port, but places downstate non-crude oil storage facilities at a distinct competitive disadvantage, particularly those located near New Jersey ports who pay no oil spill fees.
Having much the same adverse impact of bridge tolls, the increase in the oil spill license fee on non-crude facilities will cause many shippers to leave New York for New Jersey, where there are more than a dozen terminals willing to capitalize on their lower tax rate. Another fee increase will ultimately lead to the closure of New York terminals and the loss of quality jobs as these businesses move to New Jersey, a common occurrence we must not allow to continue. This bill would simply reset the license fee for certain downstate terminals to pre-2015 levels making them more competitive with similar operators in New Jersey.
Prior legislative history
2017: S.2640 - Passed Senate/A.972 - Referred to Environmental Conserva- tion 2016: S.6233 - Passed Senate/A.8628 - Referred to Environmental Conser- vation
Fiscal implications
Minimal.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.