Bill Text: NY S08711 | 2017-2018 | General Assembly | Introduced

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Bill Title: Implements the New York oilheat education and research act; authorizes the creation of certain oilheat education programs; requires the creation of a New York oilheat education and research council; enumerates the duties and purposes of the New York oilheat education and research council.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-05-16 - PRINT NUMBER 8711A [S08711 Detail]

Download: New_York-2017-S08711-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          8711
                    IN SENATE
                                      May 10, 2018
                                       ___________
        Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations
        AN ACT to amend the energy law, in relation to implementing the New York
          oilheat education and safety act
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The energy law is amended by adding a  new  article  14  to
     2  read as follows:
     3                                 ARTICLE 14
     4                  NEW YORK OILHEAT EDUCATION AND SAFETY ACT
     5  Section 14-101. Short title.
     6          14-102. Definitions.
     7          14-103. Referendum; creation and termination of a program.
     8          14-104. New York oilheat education and safety council.
     9          14-105. Assessments.
    10          14-106. Compliance.
    11          14-107. Lobbying restrictions.
    12          14-108. Pricing.
    13          14-109. Relation to other programs.
    14    § 14-101. Short title. This article shall be known and may be cited as
    15  the New York oilheat education and safety act.
    16    §  14-102.  Definitions.  For  purposes  of  this  article, unless the
    17  context otherwise requires:
    18    1. "Council" means a New York oilheat  education  and  safety  council
    19  created pursuant to section 14-104 of this article;
    20    2. "President" means the chairman of NYSERDA or his or her designee;
    21    3.  "Education"  means  any  action  to  provide information regarding
    22  oilheat fuel equipment, mechanical and technical practices, and  oilheat
    23  fuel uses to consumers, and members of the oilheat fuel industry;
    24    4.  "Industry"  means those persons involved in the production, trans-
    25  portation, and sale of oilheat fuel, and the  manufacture  and  distrib-
    26  ution of oilheat fuel utilization equipment;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15900-01-8

        S. 8711                             2
     1    5. "Industry trade association" means an organization exempt from tax,
     2  under  Section  501(c)(3)  or  501(c)(6) of the Internal Revenue Code of
     3  1986, representing the oilheat fuel industry;
     4    6.  "NYSERDA" means the New York state energy and research development
     5  authority;
     6    7. "Public member" means a designee of the president of the  New  York
     7  state energy research and development authority;
     8    8.  "Qualified  industry organization" means the New York state energy
     9  coalition, the Empire State energy association or  a  successor  associ-
    10  ation  of  these associations, or any other oilheat fuel industry organ-
    11  ization;
    12    9. "Research" means any type of study, investigation or  other  activ-
    13  ities designed to advance the image, desirability, usage, marketability,
    14  efficiency, and safety of oilheat fuel and to further the development of
    15  such information;
    16    10.  "Retail marketer" means a person engaged primarily in the sale of
    17  oilheat fuel to the ultimate consumer or to retail oilheat fuel  dispen-
    18  sers;
    19    11. "Wholesale distributor" means a person that:
    20    (a) (i) produces No. 1 distillate or No. 2 dyed distillate;
    21    (ii) imports No. 1 distillate or No. 2 dyed distillate; or
    22    (iii)  transports  No.  1  distillate  or No. 2 dyed distillate across
    23  state boundaries or among local marketing areas; and
    24    (b) sells the distillate to another  person  that  does  not  produce,
    25  import,  or  transport  No. 1 distillate or No. 2 dyed distillate across
    26  state boundaries or among local marketing areas;
    27    12. "No. 1 distillate" means fuel oil classified as No.  1  distillate
    28  by the American Society for Testing and Materials;
    29    13. "No. 2 dyed distillate" means fuel oil classified as No. 2 distil-
    30  late by the American Society for Testing and Materials that is indelibly
    31  dyed  in  accordance with regulations prescribed by the secretary of the
    32  treasury under section 4082(a)(2) of the Internal Revenue Code of  1986;
    33  and
    34    14. "Oilheat fuel" means fuel that is:
    35    (a) (i) No. 1 distillate;
    36    (ii) No. 2 dyed distillate;
    37    (iii) a liquid blended with No. 1 distillate or No. 2 dyed distillate;
    38  or
    39    (iv) a biobased liquid; and
    40    (b)  used  as a fuel for nonindustrial commercial or residential space
    41  or hot water heating.
    42    § 14-103. Referendum; creation and termination of a program. 1.  Qual-
    43  ified industry organizations shall  conduct  at  their  own  expense,  a
    44  referendum  among  producers  and retail marketers for the creation of a
    45  New York oilheat education and safety council. The  council,  if  estab-
    46  lished,  shall  reimburse  the  qualified industry organizations for the
    47  cost of the referendum  accounting  and  documentation.  The  referendum
    48  shall  be  conducted  by  an  independent auditing firm agreed to by the
    49  qualified industry organizations. The results, as certified by an  inde-
    50  pendent auditing firm, shall be submitted to the president within thirty
    51  days of certification. Voting rights in the referendum shall be based on
    52  the  volume  of  oilheat  fuel  sold in the previous calendar year. Upon
    53  approval of those persons representing two-thirds of the total value  of
    54  oilheat  fuel  voted  in the retail marketer class and two-thirds of all
    55  oilheat fuel voted in the wholesale distributor class, the council shall
    56  be established, and shall be authorized to levy an assessment on oilheat

        S. 8711                             3
     1  fuel in accordance with section 14-105  of  this  article.  All  persons
     2  voting  in the referendum shall certify to the independent auditing firm
     3  the volume of oilheat fuel represented by their vote.
     4    2.  On  the council's own initiative, or on petition to the council by
     5  wholesale distributors and  retail  marketers  representing  thirty-five
     6  percent  of the volume of oilheat fuel in each class, the council shall,
     7  at its own expense, hold a referendum to be conducted by an  independent
     8  auditing firm selected by the council, to determine whether the industry
     9  favors  termination or suspension of the council. Termination or suspen-
    10  sion shall not take effect unless it is approved by persons representing
    11  more than one-half of the total volume of oilheat  fuel  in  the  retail
    12  marketer  class  and more than one-half the total volume of oilheat fuel
    13  in the wholesale distributor class.
    14    § 14-104. New York oilheat education and safety council. 1. The quali-
    15  fied industry organizations shall select all retail marketer members and
    16  wholesale distributor members of the council. The president shall desig-
    17  nate one public member. Vacancies in the  unfinished  terms  of  council
    18  members shall be filled in the same manner as were the original appoint-
    19  ments.
    20    2.  In selecting members of the council, the qualified industry organ-
    21  izations shall give due regard to selecting a council that is  represen-
    22  tative of the industry, including representation of:
    23    (a) heating oil refiners;
    24    (b) interstate and intrastate operators among retail marketers;
    25    (c)  large and small companies among wholesale distributors and retail
    26  marketers; and
    27    (d) diverse geographic regions of the state.
    28    3. The council shall consist of no less than  five  and  up  to  seven
    29  members,  with  no  less  than  four  and up to six members representing
    30  retail marketers and wholesale  distributors,  and  one  public  member.
    31  Other than the public member, council members shall be full-time employ-
    32  ees  or owners of businesses in the industry.  Only one person at a time
    33  from any company or its affiliate may serve on the council.  The  presi-
    34  dent may serve as an ex-officio non-voting member of the council.
    35    4.  Council  members shall receive no compensation for their services,
    36  nor shall council members be reimbursed for expenses relating  to  their
    37  service, except that public members, upon request, may be reimbursed for
    38  reasonable  expenses  directly related to their participation in council
    39  meetings.
    40    5. Council members shall serve terms of three years and may not  serve
    41  more  than  two  full consecutive terms. Members filling unexpired terms
    42  may serve not more than a  total  of  seven  consecutive  years.  Former
    43  members  of  the council may be returned to the council if they have not
    44  been members for a period of two  years.  Initial  appointments  to  the
    45  council  shall  be  for  terms of one, two, and three years staggered to
    46  provide for the selection of four members each year. The  council  shall
    47  notify  the  president  of  the  name, address, and oilheat fuel-related
    48  affiliation, if any, of a council member within thirty  days  after  the
    49  appointment of the member to the council.
    50    6.  The  council  shall  develop  programs and projects and enter into
    51  contracts  or  agreements  for  implementing  this  article,   including
    52  programs to enhance consumer and employee safety and training to provide
    53  for  research and development of clean and efficient oilheat fuel utili-
    54  zation equipment, to inform and educate  the  public  about  safety  and
    55  other issues associated with the use of oilheat fuel, and to provide for
    56  the  payment  of the costs thereof with funds collected pursuant to this

        S. 8711                             4
     1  article. The council shall coordinate its activities with industry trade
     2  associations, institutions of higher education and others as appropriate
     3  to provide efficient delivery  of  services  and  to  avoid  unnecessary
     4  duplication of activities.
     5    7.  Issues related to research and development, safety, education, and
     6  training shall be given priority by the council in  the  development  of
     7  its programs and projects.
     8    8.  The  council shall select from among its members a chairperson and
     9  other officers as necessary, may establish committees and  subcommittees
    10  of  the  council,  and  shall  adopt rules and bylaws for the conduct of
    11  business and the implementation  of  this  article.  The  council  shall
    12  establish procedures for the solicitation of industry comment and recom-
    13  mendations on any significant plans, programs, and projects to be funded
    14  by the council. The council may establish advisory committees of persons
    15  other than council members.
    16    9. At the beginning of each fiscal period, the council shall prepare a
    17  budget  plan  for the next fiscal period, including the probable cost of
    18  all programs, projects, and contracts and a recommended rate of  assess-
    19  ment  sufficient  to  cover  such  costs.  The  council shall submit the
    20  proposed budget to the president for review and comment.  The  president
    21  may recommend programs and activities considered appropriate.
    22    10.  The  council  shall keep minutes, books, and records that clearly
    23  reflect all of the acts and transactions of the council and make  public
    24  such  information. The books of the council shall be audited by a certi-
    25  fied public accountant at least once each fiscal year and at such  other
    26  times  as  the  council may designate. The expense of the audit shall be
    27  the responsibility of  the  council.  Copies  of  such  audit  shall  be
    28  provided to all members of the council, all qualified industry organiza-
    29  tions, and to other members of the industry upon request.
    30    §  14-105.  Assessments. 1. The council shall set the assessment at no
    31  greater than two-tenths of one cent per gallon of oilheat fuel.
    32    2. The wholesale distributor shall make the assessment  based  on  the
    33  volume  of oilheat fuel sold. The assessment, when made, shall be listed
    34  as a separate line item on the bill labeled "New York Oilheat  Education
    35  and Safety Assessment". Assessments collected from purchasers of oilheat
    36  fuel are payable by the wholesale distributor to the council on a month-
    37  ly  basis  by  the  twenty-fifth  of  the  month  following the month of
    38  collection.
    39    If payment is not made to the council  by  the  due  date  under  this
    40  subdivision,  an  interest  penalty  of one percent of any amount unpaid
    41  shall be added for each month or fraction of a month after the due date,
    42  until final payment is made.
    43    3. The council may establish an alternative means  of  collecting  the
    44  assessment if another means is found to be more efficient and effective.
    45  The  council may establish a late payment charge and rate of interest to
    46  be imposed on any person who fails to remit or pay to  the  council  any
    47  amount due under this article.
    48    4.  Pending  disbursement pursuant to a program, plan, or project, the
    49  council shall invest funds collected through assessments, and any  other
    50  funds  received by the council, only in obligations of the United States
    51  or any agency thereof, in general obligations of any state or  political
    52  subdivision  thereof,  in any interest-bearing account or certificate of
    53  deposit of a bank that is a member of the Federal Reserve System, or  in
    54  obligations  fully guaranteed as to principal and interest by the United
    55  States.

        S. 8711                             5
     1    § 14-106. Compliance. The supreme court is vested with  the  jurisdic-
     2  tion specifically to enforce the provisions of this article, and prevent
     3  or  restrain  any person from violating any such provision. A successful
     4  action for compliance under this section may also require payment by the
     5  defendant of the costs incurred by the council in bringing the action.
     6    §  14-107.  Lobbying  restrictions.  No funds collected by the council
     7  shall be used in any manner for influencing  legislation  or  elections,
     8  except  that  the council may recommend to the president changes in this
     9  article or other statutes that would further the purpose of  this  arti-
    10  cle.
    11    §  14-108.  Pricing.  In all cases, the price of oilheat fuel shall be
    12  determined by market forces. Consistent with  the  antitrust  laws,  the
    13  council  may  take  no  action, nor may any provision of this article be
    14  interpreted as establishing an agreement to pass along to consumers  the
    15  cost of the assessment provided for in section 14-105 of this article.
    16    §  14-109.  Relation to other programs. Nothing in this article may be
    17  construed to preempt or supersede any other program relating to  oilheat
    18  fuel  education  and safety organized and operated under the laws of the
    19  state of New York.
    20    § 2. This act shall take effect immediately.
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