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A00972 Summary:

Amd 174, Nav L
Relates to license fees per barrel of petroleum shipped through the state for use outside state by facilities within 1 mile of a similar facility in another state.
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A00972 Actions:

01/10/2017referred to environmental conservation
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A00972 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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 licens- ing 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 changed the way 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 is to 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: 2016: S.6233 - Passed Senate / A.8628 - Referred to Environmental Conservation   FISCAL IMPLICATIONS: Minimal.   EFFECTIVE DATE: This act shall take effect immediately.
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A00972 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 10, 2017
        Introduced  by  M. of A. CUSICK, TITONE -- read once and referred to the
          Committee on Environmental Conservation
        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 Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph (a) of subdivision 4 of section 174 of the  navi-
     2  gation  law, as amended by section 1 of part X of chapter 58 of the laws
     3  of 2015, is amended to read as follows:
     4    (a) The license fee shall be nine and one-half cents per barrel trans-
     5  ferred, unless the major facility is located within one mile of a facil-
     6  ity in an adjoining state, which if such facility in another  state  was
     7  located  in this state would be a major facility, then such fee shall be
     8  one cent per barrel transferred, provided, however, that the fee on  any
     9  barrel,  including  any  products derived therefrom, subject to multiple
    10  transfer, shall be imposed only once at the  point  of  first  transfer.
    11  Provided further, the license fee for major facilities that (i) transfer
    12  barrels  for their own use, and (ii) do not sell or transfer the product
    13  subject to such license fee, shall be eight cents. In each  fiscal  year
    14  following  any  year  in which the balance of the account established by
    15  paragraph (a) of subdivision two of section one hundred seventy-nine  of
    16  this  article  equals  or  exceeds forty million dollars, no license fee
    17  shall be imposed unless (a) the current balance in such account is  less
    18  than  thirty-five  million  dollars  or  (b) pending claims against such
    19  account exceed fifty percent of the existing balance of such account. In
    20  the event of either such occurrence and upon  certification  thereof  by
    21  the  state  comptroller,  the administrator shall within ten days of the
    22  date of such certification reimpose the license fee,  which  shall  take
    23  effect on the first day of the month following such relevy. The rate may
    24  be  set  at  less than nine and one-half cents per barrel transferred if
    25  the administrator determines that the revenue  produced  by  such  lower
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 972                              2
     1  rate  shall be sufficient to pay outstanding claims against such account
     2  within one year of such imposition  of  the  license  fee.  Should  such
     3  account  exceed  forty  million  dollars,  as  a result of interest, the
     4  administrator  and  the commissioner of environmental conservation shall
     5  report to the legislature and the governor concerning  the  options  for
     6  the  use  of  such interest. The fee established by this paragraph shall
     7  not be imposed upon any barrel which is  transferred  to  a  land  based
     8  facility  but  thereafter  exported  from this state for use outside the
     9  state and is shipped to  facilities  outside  the  state  regardless  of
    10  whether the delivery or sale of such petroleum occurs in this state.
    11    §  2. Subdivision 4 of section 174 of the navigation law is amended by
    12  adding a new paragraph (e) to read as follows:
    13    (e) Notwithstanding paragraph (d) of this subdivision,  the  surcharge
    14  established  by  paragraph (b) of this subdivision shall be one and one-
    15  half cents per barrel for any barrel that is transferred  into  a  major
    16  facility  located  within  one mile of a facility in an adjoining state,
    17  which if such facility in another state was located in this state  would
    18  be  a  major  facility,  and thereafter exported from this state for use
    19  outside the state as described by paragraph (a) of this subdivision.
    20    § 3. This act shall take effect immediately.
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