What's happening
This bill requires annual public reports on fossil fuel-related tax expenditures and sets a five-year expiration for such tax breaks.
Why it matters
Mandates greater transparency and accountability. by requiring the state to publicly identify and evaluate all fossil fuel-related tax breaks, including their impacts on jobs, economic growth, cost of living, and emissions. This makes it easier for the public and policymakers to scrutinize these subsidies.
Broadens the definition of fossil fuels. (including biodiesel), ensuring that a wide range of tax expenditures related to various fuel types are subject to review and reporting.
Creates a systematic review process. by requiring the governor to provide recommendations each year on whether fossil fuel-related tax expenditures should be continued, modified, or repealed, ensuring these tax breaks are regularly scrutinized and justified.
Automatically sunsets fossil fuel tax breaks after five years. , unless explicitly renewed, which puts pressure on legislators to actively justify continued support and could accelerate the state’s shift away from fossil fuel dependency.
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Who cares
Fossil fuel businesses and biodiesel producers
Tax breaks directly supporting covered fuel activities would expire after five years, or sooner if existing law provides an earlier expiration.
Governor’s office and Division of Budget
The bill would require the tax expenditure report to accompany the budget and be posted on their websites, identifying fossil fuel tax breaks and their economic, jobs, cost-of-living and emissions impacts.
State legislators
Existing fossil fuel tax breaks would face a five-year sunset, and new ones would generally carry the same expiration unless lawmakers specify otherwise.
Climate advocates
The report would provide information on fossil fuel tax breaks and their emissions impacts, along with any gubernatorial recommendations on continuing, modifying or repealing them in consultation with the State Energy Planning Board.
Headline styles
Track Fossil Fuel Tax Breaks
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to governmental operations
- Delivered to assembly
- Passed senateVote 41–19
- Ordered to third reading cal.766
- Reported and committed to rules
- Print number 2649c
- Amend and recommit to finance
- Reported and committed to finance
- Referred to budget and revenue
- Print number 2649b
- Amend and recommit to budget and revenue
- Print number 2649a
Show 2 earlier actions
- Amend and recommit to budget and revenue
- Referred to budget and revenue
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.
List Fossil Fuel Tax Breaks
In Assembly Committee · Governmental Operations · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2649--C
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sens. KRUEGER, BIAGGI, BROOKS, GOUNARDES, HOYLMAN, KAPLAN, LIU, MAY, METZGER, MONTGOMERY, MYRIE, RIVERA, SALAZAR, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee… Show allHide
Introduced by Sens. KRUEGER, BIAGGI, BROOKS, GOUNARDES, HOYLMAN, KAPLAN, LIU, MAY, METZGER, MONTGOMERY, MYRIE, RIVERA, SALAZAR, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, in relation to requiring an annual report of all fossil fuel related tax expenditures; and to provide for the expiration of fossil fuel related tax expenditures
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature hereby finds and declares that the use of fossil fuels result in greenhouse gas emissions. The state has a goal of reducing greenhouse gas emissions by eighty percent below 1990 levels by 2050 to combat climate change. Therefore, the state has an interest in reducing tax expenditures that support fossil fuels. By creating a process through which the legislature would review existing fossil fuel tax expenditures on a regular basis, the state can better ensure that they are in the public interest.
§ 2. Subdivision 1 of section 181 of the executive law is amended by adding two new paragraphs (c) and (d) to read as follows:
(c) "Fossil fuel" shall have the same definition as in section 1-103 of the energy law and include biodiesel.
(d) "Fossil fuel related tax expenditures" shall mean tax expenditures that directly support the production, transmission, distribution, transportation, storage, sale, purchase or delivery of fossil fuels.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03121-06-0
S. 2649--C 2
§ 3. The opening paragraph and paragraphs (f) and (g) of subdivision 2 of section 181 of the executive law, the opening paragraph as amended by chapter 309 of the laws of 1996 and paragraphs (f) and (g) as added by chapter 23 of the laws of 1990, are amended and two new paragraphs (h) and (i) are added to read as follows:
In addition to the information required by article seven of the constitution and section twenty-two of the state finance law, the governor shall submit to the legislature and make available to the public on the websites of the state division of budget and the executive office, and any other location deemed necessary to ensure ease of access, [as early as practicable, but no later than thirty days after] concurrent with submitting the budget, a tax expenditure report containing the following information and statements relating to tax expenditures in articles nine (other than section one hundred eighty), nine-A, thirteen-A, twenty-two, twenty-eight, thirty-one[, thirty-two] and thirtythree of the tax law:
(f) comment, if any, on the effectiveness and efficiency of other tax expenditures; [and]
(g) general cautionary and advisory notes concerning limitations of data, estimation procedures, sampling errors and imputed values, prominently displayed[.];
(h) information identifying whether a tax expenditure is a fossil fuel related tax expenditure and if so, provide additional information on the impact of such expenditures in regard to economic growth, jobs, individual cost of living and fossil fuel emissions; and
(i) any recommendations of the governor regarding continuing, modifying or repealing any identified fossil fuel related tax expenditures, and such other information regarding such fossil fuel related tax expenditures as he or she may feel useful and appropriate, in consultation with the state energy planning board.
§ 4. Notwithstanding any other provisions of law, there shall be a 5 year expiration for all fossil fuel related tax expenditures, as defined in paragraph (d) of subdivision 1 of section 181 of the executive law, with such 5 year period commencing on the effective date of this act; provided, however, that if such an expenditure would otherwise expire or be deemed repealed pursuant to law upon an earlier date, then such expenditure shall expire or be deemed repealed upon such earlier date. Any new fossil fuel related tax expenditure enacted by the legislature after the effective date of this act shall be subject to a 5 year expiration commencing on the effective date of the act which enacted such expenditure unless otherwise specified by the legislature at that time.
§ 5. 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 executive law, in relation to requiring an annual report of all fossil fuel related tax expenditures; and to provide for the expiration of fossil fuel related tax expenditures
Purpose
To require the Governor to submit an annual enumeration of fossil fuel related tax expenditures, including recommendations regarding continua- tion, modification or repeal of such expenditures; and to provide for the expiration of all such expenditures within 5 years unless renewed through legislative action.
Summary of provisions
Section 1: Legislative findings. Section 2: Definitions.
Section 3: Adds two new paragraphs to subdivision 2 of section 181 of the executive law, requiring the Governor to submit information identi- fying whether a tax expenditure is a fossil fuel related tax expenditure and the impact of such expenditures in regard to economic growth, jobs, individual cost of living and fossil fuel emissions.
The Governor shall also make recommendations regarding continuing, modi- fying or repealing such expenditures, in consultation with the state Energy Planning Board.
Section 4: Creates a 5-year expiration for all existing and newly-enact- ed fossil fuel related tax expenditures.
Justification
New York State spends over $1.5 billion every year on fossil fuel related tax expenditures, distorting the market and subsidizing the use of greenhouse gas-emitting fossil fuels. Some of these tax expenditures may serve a compelling public interest such as offering heating assist- ance to low-income New Yorkers. However, a significant proportion of the spending serves to prop-up outdated industries or reward energy ineffi- ciencies leading to a double cost to taxpayers once for the direct tax expenditure and again for the environmental damage resulting from the continued burning of fossil fuels.
To address the real and serious threat to the health, welfare and pros- perity of all New Yorkers posed by human-caused climate change, New York State has a goal of reducing greenhouse gas emissions by 80% below 1990 levels by 2050. Continuing to subsidize the use of fossil fuels delays the adoption of cleaner alternatives,' creates barriers to achieving our climate goals and wastes precious taxpayer money.
This bill would require the Governor's annual Tax Expenditure Report to include evaluations of all fossil fuel related tax expenditures, as well as recommendations by the Governor regarding the continuation, modifica- tion or repeal of such expenditures. The Governor's recommendation would be made in consultation with the state Energy Planning Board, whose
members include representatives of NYSERDA, PSC, DEC, ESD, DOT, DOH, DOL, DAM, Legislative appointees and others.
The bill also implements a 5-year sunset provision for all current and future fossil fuel related tax expenditures, providing such expenditures would not otherwise expire at an earlier date. The Legislature may, of course, choose to renew any tax expenditure that it deems to be in the public interest. This will create an evaluation process through which outdated, counterproductive fossil fuel subsidies can be allowed to expire, while those that provide a real benefit to New Yorkers can be retained.
Legislative history
2017-18 S6881/A8675 Cahill - died in committee
Fiscal implications
Subject to evaluation by the Governor. Potential of millions of dollars in savings to the State.
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.