Senate Bill S4523A

                                BILL NUMBER:S4523A

TITLE OF BILL:

An act
to amend the environmental conservation law, in relation to the sulfur
content of number two heating oil

PURPOSE OF THE BILL:

To amend chapter 203 of the laws of 2010 to require the sulfur content
of all number two home heating oil in New York to not have a sulfur
content greater than 500 ppm (parts per million) by July 1, 2014.

SUMMARY OF SPECIFIC PROVISIONS:

Amends the Environmental Conservation Law by adding a new section
19-0325 as follows:

(1) Require that all
2 heating oil sold in New York State after
July 1, 2014 contain a sulfur content not exceeding 500 parts
per million.

(2) This act shall take effect immediately.

              

JUSTIFICATION:

This bill brings about critical sulfur reductions for
2 home
heating
oil while taking appropriate measures to ensure that a potentially
disastrous disruption in supply will not occur by extending the lead
time to July 1, 2014.

Under the current July 1, 2012 timeline,
2 home heating oil is at
risk for supply constriction. Such a disruption would further drive
up the cost of this fuel; impacting its mostly rural consumer base,
of which many are close to, or below, the poverty line.

Engineering evaluations predict that installation of even more
processing capacity at refineries to adopt a low sulfur standard for
heating oil will not take less than four years. The federal
permitting process alone will take almost two years. Failure to
provide sufficient lead time for the adoption of the new standard
carries a significant risk for shortfalls in supply, even under the
best of circumstances.

In addition, a recent study estimated that the anticipated shortfall
would result in an increase in the price of heating oil and diesel
fuel by 20 to 30 cents a gallon -- costing New York consumers as much
as $1 billion-- and that is assuming a mild winter. Consumers could
pay up to 60 cents more for heating' oil and diesel fuel during a
winter cold snap if refineries have not yet been able to meet the new
processing standards.


This measure strikes an appropriate balance of setting New York on a
timetable to achieve cleaner air and reduce the sulfur content of
home heating oil while assuring that supplies of both the heating oil
and transportation diesel will be available during the transition,
thereby protecting New York consumers from wild and unpredictable
spikes in the cost of these necessary commodities.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

Potential cost savings to State and local governments by allowing for
a more reasonable time period to implement the Sulfur content
requirements for
2 heating oil as outlined in this legislation.

EFFECTIVE DATE:

This act shall take effect immediately.