Senate Bill S1145A

                                 BILL NUMBER:  S1145               REVISED 02/20/09

 TITLE OF BILL :

An act to amend the environmental conservation law, in relation to
requiring a reduction in sulfur for all heating oil used in
non-attainment areas


 PURPOSE :

This bill would require that all heating oil sold for use within the
State's non-attainment area, as defined in the federal clean air act,
to have a sulfur content of fifteen parts per million (ppm) or less.

 SUMMARY OF PROVISIONS :

Section 1: Adds a new Section 19-0318 to the Environmental
Conservation Law (ECL) to require that on or after January 1st, 2011,
all oil sold for use within a non-attainment area shall not have a
sulfur content greater than 15 ppm.

§2. Effective immediately.

 EXISTING LAW :

              

Currently, the ECL does not contain any restriction on the sulfur
content of home heating oil.

In New York, the following counties are in the "non-attainment area"
under the Federal Clean Air Act: Bronx, Kings, Nassau, New York,
Orange, Queens, Richmond, Rockland, Suffolk, and Westchester. The
Clean Air Act and Amendments of 1990 define a "nonattainment area" as
a locality where air pollution levels persistently exceed National
Ambient Air Quality Standards, or that contributes to ambient air
quality in a nearby area that fails to meet standards.

 JUSTIFICATION :

Home heating oil is essentially the same as diesel fuel, except there
are virtually no limits to the level of sulfur that can be in it. The
exhaust particles that form from the use of this fuel are known to
exacerbate allergies, trigger asthma attacks, decrease lung function,
cause heart attacks and shorten life expectancy.

Since it has such a high level of sulfur, combustion of home heating
oil makes it the second largest Source of sulfur dioxide emissions in
the state - only the power sector emits more. In fact, burning this
fuel causes nearly 42,000 tons of Sulfur Dioxide to be emitted each
year.

Compounding the problem is the rate at which New York State consumes
home heating oil. With 2.6 million households, New York leads the
nation in the amount of homes heated by oil. Most disturbingly, over
79~ of this consumption occurs in the New York Metropolitan region,
creating a localized pollution problem.

There is a direct relationship between sulfur in the fuel and levels
of Sulfur Dioxide emissions.  1. A shift from home heating oil with a
2% sulfur content to a fuel with .05% sulfur content translates to
approximately a 80% reduction in particulate matter. Going to the
level that diesel fuel will meet 0.0015% will virtually eliminate the
S02 emitted from the combustion of home heating fuel.

2. Furthermore, Ultra-low sulfur diesel has been shown to reduce
Nitrogen oxides by 20-30%.
3. Recognizing the significant health and economic benefits provided
by low sulfur home heating oil, steps should be taken to require its
use. Doing so will help ensure the safety and quality of the air New
Yorkers breath.

Fortunately, home heating oil can be put through the same refining
process that an increasing portion of diesel fuel undergoes.
According to the Consumer Energy Council of America, ultra-low sulfur
heating oil is approximately $.08 more expensive, per gallon, than
No.2 distillate. In March of this year, No.2 distillate was being sold
for $2.596 per gallon. This proposal will cost New York State
Homeowners roughly $60 more per year for home heating oil.

Using cleaner home heating oil, however, has significant economic
advantages. For example, boilers need to be serviced less frequently
and they have been shown to foul at least 50% less frequently. In
fact, the increased cost of the ultra-if cleaner home heating oil will
be at least partially off-set by the savings in cleaning costs.

 LEGISLATIVE HISTORY :

2008 Referred to Environmental Conservation (S.6104)
2007 Referred to Rules (S.6104)

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

                                 BILL NUMBER:  S1145B

 TITLE OF BILL :
An act to amend the environmental conservation law, in relation to
requiring a reduction in sulfur for all heating oil used in the state


 PURPOSE :
The purpose of this legislation is to limit the sulfur content in home
heating oil.

 SUMMARY OF PROVISIONS :
Section one limits the sulfur content in number two heating oil to no
greater than 15 parts per million beginning July 1, 2012

Section two authorizes the governor, after consultation with NYSERDA,
to make exceptions by executive order for considerations of scarcity.

 JUSTIFICATION :
When number two home heating oil is burned, sulfur dioxide, a known
greenhouse gas, is released into the atmosphere. Estimates have shown
that reducing the sulfur content of home heating oil is an important
and critical step in curbing greenhouse gas emissions.

Exhaust particles formed by using home heating oil can exacerbate
allergies, trigger asthma attacks, decrease lung function, cause heart
              

                                 BILL NUMBER:  S1145C

 TITLE OF BILL :
An act to amend the environmental conservation law, in relation to
requiring a reduction in sulfur for all heating oil used in the state

 PURPOSE :
The purpose of this legislation is to limit the sulfur content in home
heating oil.

 SUMMARY OF PROVISIONS :
Section one limits sulfur content in number two heating oil to no
greater than 15 parts per million beginning July 1, 2012.

Section two authorizes the governor, after consultation with NYSERDA,
to make exceptions by executive order for considerations of scarcity.

 JUSTIFICATION :
When number two home heating oil is burned, sulfur dioxide, a known
greenhouse gas, is released into the atmosphere. Estimates have shown
that reducing the sulfur content of home heating oil is an important
and critical step in curbing greenhouse gas emissions. Additionally,
exhaust particles formed by using home heating oil can exacerbate
allergies, trigger asthma attacks, decrease lung function, cause heart
attacks and shorten life expectancy.

              

Furthermore, reducing the sulfur content in home heating oil is
inexpensive and can be done immediately. Home heating oil can be put
through the same refining process that an increasing portion of diesel
fuel undergoes.

Reduced equipment servicing - Higher sulfur content in fuels produces
sulfur scaling on heating system component parts which adversely
impacts heating system performance and reduces system efficiency. The
lower the sulfur content of the fuel, the better the heating system
performance which decreases the need for servicing by the consumer.
Better heating system performance allows for fuller combustion of fuel
which reduces emissions. All of this leads to increased consumer
savings both on system maintenance and reduced fuel costs as less fuel
is used.

Increased Fungibility - By having one standard for
2 heating oil, heating oil supplier's can service all of their
customers from the same truck. Currently, home heating oil customer's
have to be supplied differently than other
2 fuel oil users using
2 fuel oil in an off road application such as excavators, farm
equipment, generators, marine use, etc. The average cost of a new
truck is $135,000. Therefore, increased fungibility of the product
improves distribution efficiencies and lowers costs. This fungibility
will also make additional fuel storage available at terminals since
they will not need to carry the different fuels. This additional
capacity can be used to accommodate renewable biofuels.

Supply of 15ppm sulfur
2 heating oil - According to the United States Department of Energy's
Energy Information Administration (EIA), in 2008 the distillate
market, excluding jet fuel, was a 59 billion gallon market. Of this,
on-road diesel, off-road diesel, and farm use account for 44 billion
gallons or 76% and all of these uses must be 15ppm later this year.
According to the united States Environmental Protection Agency, as
reported by the Clean Diesel Fuel Alliance, through the end of the
third quarter of 2009, 99% of all diesel pumps were distributing ultra
low sulfur diesel (ULSD). Railroads and marine use are capped at 15ppm
in 2012 and are currently 4 billion gallons. when added to the diesel
and farm uses, this totals 48 billion gallons or 83% of total
distillate use. Residential and commercial heating oil only account
for 7 billion gallons or 12% of the total.

New York State is the largest consumer of home heating oil. By taking
action to reduce sulfur content, we will lead the country in
eliminating one of the causes of global warming and improving the
health of those suffering from respiratory and other conditions as a
result of unclean fuel.

 SUPPORT :

American Lung Association
American Cancer Society
Empire State Petroleum Association, Inc.
Environmental Advocates of New York
Environmental Defense Action Fund
Hudson Valley Oil Heat Council
Natural Resources Defense Council
New York City Mayor's Office
New York Oil Heating Association, Inc.
New York League of Conservation Voters
Oil Heat Manufacturers of Central New York
Oil Heat Manufacturers of Eastern New York
Oil Heat Institute of Long Island
Oil Heat Manufacturers Association
Teamsters Joint Council No. 16: International Brotherhood of Teamsters
Teamsters Local Union No. 553
United Puerto Rican Organization of Sunset Park
WE ACT for Environmental Justice

 OPPOSITION :
ConocoPhilips
HESS Corporation
New York State Association of Town Superintendents of Highways, Inc.
New York State Motor Truck Association
New York State Petroleum Council

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.