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.
STATE OF NEW YORK
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6954--A
R. R. 678
2017-2018 Regular Sessions
IN ASSEMBLY
March 27, 2017
___________
Introduced by M. of A. ENGLEBRIGHT, GALEF, RAMOS, LAVINE, ABINANTI,
D'URSO, HARRIS, COLTON, RAIA, JEAN-PIERRE, SEPULVEDA, QUART, CARROLL,
KAVANAGH -- Multi-Sponsored by -- M. of A. HOOPER, THIELE -- read once
and referred to the Committee on Environmental Conservation --
reported and referred to the Committee on Ways and Means -- reported
and referred to the Committee on Rules -- amended on the special order
of third reading, ordered reprinted as amended, retaining its place on
the special order of third reading
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-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10699-07-7
A. 6954--A 2
1 ing oil that meets the specifications of ASTM D975, or other specifica-
2 tions as determined by the commissioner.
3 (d) "Heating oil" shall mean petroleum oil refined for the purpose of
4 use as fuel for combustion in a space and/or water heating system that
5 meets the specifications of the American Society for Testing and Materi-
6 als designation D396 or other specifications as determined by the
7 commissioner.
8 (e) "Feedstock" shall mean soybean oil, oil from annual cover crops,
9 algal oil, biogenic waste oils, fats or greases, or non-food grade corn
10 oil, provided that the commissioner may, by rules and regulations, modi-
11 fy the definition of feedstock based on the vegetable oils, animal fats
12 or cellulosic biomass listed in table 1 of 40 C.F.R. § 80.1426.
13 (2) On and after July first, two thousand eighteen, all heating oil
14 sold for use in any building within the counties of Nassau, Suffolk and
15 Westchester shall be bioheating fuel that contains at least five percent
16 biodiesel.
17 (3) The governor may, by issuing an executive order, temporarily
18 suspend the applicability of this section at any time based on the
19 governor's determination, after consulting with the New York state ener-
20 gy research and development authority and the department, that meeting
21 the requirement of subdivision two of this section is not feasible due
22 to lack of adequate supply of biodiesel or that meeting the requirement
23 would result in undue financial hardship to consumers.
24 (4) The requirements of this section shall not: (a) prohibit the sale
25 and use of bioheating fuel with the same or any greater percentage of
26 biodiesel blended with heating oil, or the sale and use of one hundred
27 percent biodiesel, for space and/or water heating purposes in the state;
28 and (b) preempt any laws of the city of New York with respect to
29 mandated percentage levels of biodiesel blends with heating oil provided
30 that such laws require the same or greater percentage of biodiesel
31 blended with heating oil as required by this section.
32 § 2. Paragraph (a) and subparagraph (ii) of paragraph (b) of subdivi-
33 sion 25 of section 210-B of the tax law, paragraph (a) as amended by
34 section 1 of part N of chapter 60 of the laws of 2016 and subparagraph
35 (ii) of paragraph (b) as added by section 17 of part A of chapter 59 of
36 the laws of 2014, are amended to read as follows:
37 (a) General. A taxpayer shall be allowed a credit against the tax
38 imposed by this article. Such credit, to be computed as hereinafter
39 provided, shall be allowed for [bioheat] bioheating fuel, used for space
40 heating or hot water production for residential purposes within this
41 state purchased before January first, two thousand twenty. Such credit
42 shall be $0.01 per percent of biodiesel per gallon of [bioheat] bioheat-
43 ing fuel, not to exceed twenty cents per gallon, purchased by such
44 taxpayer. Provided, however, that on or after January first, two thou-
45 sand seventeen, this credit shall not apply to [bioheat] bioheating fuel
46 that is less than six percent biodiesel per gallon of [bioheat] bioheat-
47 ing fuel.
48 (ii) ["Bioheat"] "Bioheating fuel" shall mean a fuel comprised of
49 biodiesel or renewable hydrocarbon diesel blended with conventional home
50 heating oil, which meets the specifications of the American Society of
51 Testing and Materials designation D 396 or D 975.
52 § 3. Paragraph 1 and subparagraph (b) of paragraph 2 of subsection
53 (mm) of section 606 of the tax law, paragraph 1 as amended by section 2
54 of part N of chapter 60 of the laws of 2016 and subparagraph (b) of
55 paragraph 2 as added by section 2 of part D of chapter 35 of the laws of
56 2006, are amended to read as follows:
A. 6954--A 3
1 (1) A taxpayer shall be allowed a credit against the tax imposed by
2 this article. Such credit, to be computed as hereinafter provided, shall
3 be allowed for [bioheat] bioheating fuel, used for space heating or hot
4 water production for residential purposes within this state and
5 purchased on or after July first, two thousand six and before July
6 first, two thousand seven and on or after January first, two thousand
7 eight and before January first, two thousand twenty. Such credit shall
8 be $0.01 per percent of biodiesel per gallon of [bioheat] bioheating
9 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer.
10 Provided, however, that on or after January first, two thousand seven-
11 teen, this credit shall not apply to [bioheat] bioheating fuel that is
12 less than six percent biodiesel per gallon of [bioheat] bioheating fuel.
13 (b) ["Bioheat"] "Bioheating fuel" shall mean a fuel comprised of biod-
14 iesel or renewable hydrocarbon diesel blended with conventional home
15 heating oil, which meets the specifications of the American Society of
16 Testing and Materials designation D 396 or D 975.
17 § 4. This act shall take effect immediately.
