senate Bill S2651A

Provides that diesel fuel that contains a concentration of sulfur that is less than or equal to 15 parts per million shall not be sold unless it includes biodiesel

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 27 / Jan / 2011
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 07 / Dec / 2011
    • AMEND AND RECOMMIT TO ENVIRONMENTAL CONSERVATION
  • 07 / Dec / 2011
    • PRINT NUMBER 2651A
  • 04 / Jan / 2012
    • REFERRED TO ENVIRONMENTAL CONSERVATION

Summary

Provides that diesel fuel that contains a concentration of sulfur that is less than or equal to fifteen parts per million shall not be sold or offered for sale unless such diesel fuel includes biodiesel as its lubrication additive.

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Bill Details

See Assembly Version of this Bill:
A7133A
Versions:
S2651
S2651A
Legislative Cycle:
2011-2012
Current Committee:
Senate Environmental Conservation
Law Section:
Environmental Conservation Law
Laws Affected:
Amd §§19-0107 & 19-0301, En Con L; amd §192-c, Ag & Mkts L
Versions Introduced in 2009-2010 Legislative Cycle:
S998, S998

Sponsor Memo

BILL NUMBER:S2651A

TITLE OF BILL:
An act to amend the environmental conservation law and the agriculture
and markets law, in relation to the sale of diesel fuel

PURPOSE:
This bill amends the agriculture and markets law to encourage the
growth of the biodiesel industry in New York State by requiring the
use of biodiesel in low sulfur diesel fuel. The provisions of the bill
do not take effect until New York State has annual production capacity
of 12 million gallons of biodiesel and either the Federal government
has reduced the tax on biodiesel fuel, or it is after June 30, 2013.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds the definition of biodiesel to the Environmental
Conservation Law.

Section 2 requires the Commissioner of Environmental Conservation to
cooperate with the Department of Agriculture and Markets on the
efficient transition to the use of biodiesel in the State.

Section 3 adds the definition of biodiesel to the Agriculture and
Markets law.

Section 4 requires the use of biodiesel as a lubrication additive in
diesel fuel with a sulfur content lower than 15 parts per million;
only if the Commissioner of Agriculture and Markets has certified that
the annual production capacity of biodiesel in the State exceeds 12
million gallons, and either the Federal government reduces the tax on
diesel fuel containing biodiesel or the date of June 30, 2013 has
passed.

JUSTIFICATION:
In June 2006, the Federal Environmental Protection Agency began
phasing in for the transportation sector the use of Ultra Low Sulfur
Diesel Fuel (ULSD), fuel containing not more than 15 parts per million
of sulfur. The ULSD must replace sulfur with an additive to help
lubricate the diesel engines or the engines will be damaged,
substantially reducing their useful life.

Current technology provides two equally good additives for
lubrication. One is a synthetic made from a petroleum based product.
The other is 100% biodiesel made from agricultural products or waste
food greases. Both additives can be produced for approximately the
same price.

This legislation will provide the incentive for the construction of
biodiesel refineries in New York State to meet the demand for
lubrication additives. Investors are prepared to build such plants as
long as there are assurances in the demand of biodiesel. Passage of
this legislation will create a demand in excess of 25 million gallons
of 100% biodiesel in New York State alone.

The use of biodiesel as an additive will make ULSD an even more
environmentally friendly product and will ensure that Federally


designated non-attainment areas, such as metropolitan New York City,
have the cleanest possible fuel for vehicles.

PRIOR LEGISLATIVE HISTORY:
S.7528 of 2004; Passed Assembly
S.4470 of 2005/2006; Referred to Environmental Conservation
S.3838 of 2007/2008; Referred to Environmental Conservation
S.998 of 2009/2010; Referred to Environmental Conservation

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2651--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 27, 2011
                               ___________

Introduced  by  Sens.  GRISANTI,  MARCELLINO  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Environ-
  mental Conservation -- committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the environmental conservation law and the agriculture
  and markets law, in relation to the sale of diesel fuel

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  19-0107 of the environmental conservation law is
amended by adding a new subdivision 25 to read as follows:
  25. "BIODIESEL FUEL" MEANS  A  RENEWABLE,  BIODEGRADABLE,  MONO  ALKYL
ESTER  COMBUSTIBLE  LIQUID  FUEL DERIVED FROM AGRICULTURAL PLANT OILS OR
ANIMAL FATS AND THAT MEETS AMERICAN SOCIETY FOR  TESTING  AND  MATERIALS
SPECIFICATION D6751 FOR BIODIESEL FUEL (B100) BLEND STOCK FOR DISTILLATE
FUELS AS UPDATED.
  S  2.  Subdivision 2 of section 19-0301 of the environmental conserva-
tion law is amended by adding a new paragraph f to read as follows:
  F. COOPERATE WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS TO  ENSURE
AN  EFFICIENT TRANSITION TO THE USE OF BIODIESEL FUEL AS THE LUBRICATION
ADDITIVE FOR LOW-SULFUR DIESEL FUEL.
  S 3. Subdivision 1 of section 192-c of the agriculture and markets law
is amended by adding a new paragraph k to read as follows:
  K. "BIODIESEL FUEL" MEANS A RENEWABLE, BIODEGRADABLE, MONO ALKYL ESTER
COMBUSTIBLE LIQUID FUEL DERIVED FROM AGRICULTURAL PLANT OILS  OR  ANIMAL
FATS  AND THAT MEETS AMERICAN SOCIETY FOR TESTING AND MATERIALS SPECIFI-
CATION D6751 FOR BIODIESEL FUEL (B100) BLEND STOCK FOR DISTILLATE  FUELS
AS UPDATED.
  S  4.  Subdivisions  11, 12 and 13 of section 192-c of the agriculture
and markets law are renumbered subdivisions 12, 13  and  14  and  a  new
subdivision 11 is added to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06958-02-1

S. 2651--A                          2

  11.  A. UPON THE SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPH
B OF THIS SUBDIVISION AND UPON PUBLICATION IN THE STATE REGISTER OF  THE
CERTIFICATION  SET  FORTH  IN  SUBPARAGRAPH  (I)  OF PARAGRAPH B OF THIS
SUBDIVISION AND, IF OCCURRING BEFORE JUNE THIRTIETH, TWO THOUSAND  FOUR-
TEEN  THE  CERTIFICATION SET FORTH IN CLAUSE (A) OF SUBPARAGRAPH (II) OF
PARAGRAPH B OF THIS SUBDIVISION, A PERSON SHALL NOT SELL  OR  OFFER  FOR
SALE  DIESEL  FUEL  THAT CONTAINS A CONCENTRATION OF SULFUR THAT IS LESS
THAN OR EQUAL TO FIFTEEN PARTS  PER  MILLION  UNLESS  SUCH  DIESEL  FUEL
INCLUDES BIODIESEL FUEL AS ITS LUBRICATION ADDITIVE.
  B. NO PERSON SHALL BE SUBJECT TO THE PROVISIONS OF PARAGRAPH A OF THIS
SUBDIVISION UNTIL THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II)
OF THIS PARAGRAPH HAVE BEEN SATISFIED:
  (I)  THIRTY  DAYS AFTER THE COMMISSIONER HAS CERTIFIED THAT THE ANNUAL
CAPACITY FOR THE PRODUCTION OF BIODIESEL  FUEL  IN  THIS  STATE  EXCEEDS
TWELVE MILLION GALLONS; AND
  (II) THE EARLIER OF:
  (A)  EIGHTEEN  MONTHS  AFTER THE COMMISSIONER CERTIFIES THAT A FEDERAL
ACTION ON TAXES IMPOSED, TAX CREDITS ALLOWED OR OTHER ACTION  CREATES  A
TWO  CENT  OR GREATER REDUCTION IN THE PRICE ON TAXABLE DIESEL FUEL THAT
CONTAINS AT LEAST TWO PERCENT BIODIESEL FUEL THAT IS SOLD IN THIS STATE;
OR
  (B) JUNE THIRTIETH, TWO THOUSAND FOURTEEN.
  S 5. This act shall take effect immediately, provided that the commis-
sioner of agriculture and markets  shall  notify  the  legislative  bill
drafting  commission upon the occurrence of the certifications set forth
in section four of this act in order that the commission may maintain an
accurate and timely effective data base of the official text of the laws
of the state of New York in furtherance of effecting the  provisions  of
section  44  of the legislative law and section 70-b of the public offi-
cers law.

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