Bill Text: NY S05422 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to bioheating fuel requirements and bioheating fuel tax credits; requires all heating oil sold for use in any building in Nassau, Suffolk and Westchester counties on and after July 1, 2018 be bioheating fuel that contains at least five percent biodiesel.
Spectrum: Slight Partisan Bill (Democrat 7-4)
Status: (Passed) 2017-09-13 - SIGNED CHAP.315 [S05422 Detail]
Download: New_York-2017-S05422-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5422--A 2017-2018 Regular Sessions IN SENATE March 27, 2017 ___________ Introduced by Sens. BOYLE, AVELLA, CROCI, HANNON, LATIMER, PHILLIPS, SANDERS, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Environmental Conservation -- 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 environmental conservation law and the tax law, in relation to bioheating fuel The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The environmental conservation law is amended by adding a 2 new section 19-0327 to read as follows: 3 § 19-0327. Bioheating fuel requirements. 4 (1) Definitions. For the purpose of this section, the following terms 5 shall have the following meanings: 6 (a) "Biodiesel" shall mean a fuel, designated B100, that meets the 7 specifications of the American Society for Testing and Materials desig- 8 nation D6751 composed exclusively of mono-alkyl esters of long chain 9 fatty acids derived from feedstock. 10 (b) "Renewable Hydrocarbon Diesel" shall mean a domestically-produced 11 fuel derived from vegetable oils, animal fats, and other renewable 12 feedstocks that meet the most recent specifications of ASTM D975. Renew- 13 able hydrocarbon shall not include any fuel from co-processed biomass 14 with a feedstock that is not biomass. 15 (c) "Bioheating fuel" shall mean a fuel comprised of biodiesel blended 16 with petroleum heating oil that meets the specifications of the American 17 Society for Testing and Materials designation D396, a fuel comprised of 18 domestically-produced renewable hydrocarbon diesel with petroleum heat- 19 ing oil that meets the specifications of ASTM D975, or other specifica- 20 tions as determined by the commissioner. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10699-06-7S. 5422--A 2 1 (d) "Heating oil" shall mean petroleum oil refined for the purpose of 2 use as fuel for combustion in a space and/or water heating system that 3 meets the specifications of the American Society for Testing and Materi- 4 als designation D396 or other specifications as determined by the 5 commissioner. 6 (e) "Feedstock" shall mean soybean oil, oil from annual cover crops, 7 algal oil, biogenic waste oils, fats or greases, or non-food grade corn 8 oil, provided that the commissioner may, by rules and regulations, modi- 9 fy the definition of feedstock based on the vegetable oils, animal fats 10 or cellulosic biomass listed in table 1 of 40 C.F.R. § 80.1426. 11 (2) On and after July first, two thousand eighteen, all heating oil 12 sold for use in any building within the counties of Nassau, Suffolk and 13 Westchester shall be bioheating fuel that contains at least five percent 14 biodiesel. 15 (3) The governor may, by issuing an executive order, temporarily 16 suspend the applicability of this section at any time based on the 17 governor's determination, after consulting with the New York state ener- 18 gy research and development authority and the department, that meeting 19 the requirement of subdivision two of this section is not feasible due 20 to lack of adequate supply of biodiesel or that meeting the requirement 21 would result in undue financial hardship to consumers. 22 (4) The requirements of this section shall not: (a) prohibit the sale 23 and use of bioheating fuel with the same or any greater percentage of 24 biodiesel blended with heating oil, or the sale and use of one hundred 25 percent biodiesel, for space and/or water heating purposes in the state; 26 and (b) preempt any laws of the city of New York with respect to 27 mandated percentage levels of biodiesel blends with heating oil provided 28 that such laws require the same or greater percentage of biodiesel 29 blended with heating oil as required by this section. 30 § 2. Paragraph (a) and subparagraph (ii) of paragraph (b) of subdivi- 31 sion 25 of section 210-B of the tax law, paragraph (a) as amended by 32 section 1 of part N of chapter 60 of the laws of 2016 and subparagraph 33 (ii) of paragraph (b) as added by section 17 of part A of chapter 59 of 34 the laws of 2014, are amended to read as follows: 35 (a) General. A taxpayer shall be allowed a credit against the tax 36 imposed by this article. Such credit, to be computed as hereinafter 37 provided, shall be allowed for [bioheat] bioheating fuel, used for space 38 heating or hot water production for residential purposes within this 39 state purchased before January first, two thousand twenty. Such credit 40 shall be $0.01 per percent of biodiesel per gallon of [bioheat] bioheat- 41 ing fuel, not to exceed twenty cents per gallon, purchased by such 42 taxpayer. Provided, however, that on or after January first, two thou- 43 sand seventeen, this credit shall not apply to [bioheat] bioheating fuel 44 that is less than six percent biodiesel per gallon of [bioheat] bioheat- 45 ing fuel. 46 (ii) ["Bioheat"] "Bioheating fuel" shall mean a fuel comprised of 47 biodiesel or renewable hydrocarbon diesel blended with conventional home 48 heating oil, which meets the specifications of the American Society of 49 Testing and Materials designation D 396 or D 975. 50 § 3. Paragraph 1 and subparagraph (b) of paragraph 2 of subsection 51 (mm) of section 606 of the tax law, paragraph 1 as amended by section 2 52 of part N of chapter 60 of the laws of 2016 and subparagraph (b) of 53 paragraph 2 as added by section 2 of part D of chapter 35 of the laws of 54 2006, are amended to read as follows: 55 (1) A taxpayer shall be allowed a credit against the tax imposed by 56 this article. Such credit, to be computed as hereinafter provided, shallS. 5422--A 3 1 be allowed for [bioheat] bioheating fuel, used for space heating or hot 2 water production for residential purposes within this state and 3 purchased on or after July first, two thousand six and before July 4 first, two thousand seven and on or after January first, two thousand 5 eight and before January first, two thousand twenty. Such credit shall 6 be $0.01 per percent of biodiesel per gallon of [bioheat] bioheating 7 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. 8 Provided, however, that on or after January first, two thousand seven- 9 teen, this credit shall not apply to [bioheat] bioheating fuel that is 10 less than six percent biodiesel per gallon of [bioheat] bioheating fuel. 11 (b) ["Bioheat"] "Bioheating fuel" shall mean a fuel comprised of biod- 12 iesel or renewable hydrocarbon diesel blended with conventional home 13 heating oil, which meets the specifications of the American Society of 14 Testing and Materials designation D 396 or D 975. 15 § 4. This act shall take effect immediately.