S T A T E O F N E W Y O R K
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8435
I N A S S E M B L Y
January 15, 2014
___________
Introduced by M. of A. SWEENEY -- read once and referred to the Commit-
tee on Environmental Conservation
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:
Section 1. The environmental conservation law is amended by adding a
new section 19-0327 to read as follows:
S 19-0327. BIOHEATING FUEL REQUIREMENTS.
(1) DEFINITIONS. FOR THE PURPOSE OF THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "BIODIESEL" SHALL MEAN A FUEL, DESIGNATED B100, THAT MEETS THE
SPECIFICATIONS OF THE AMERICAN SOCIETY FOR TESTING AND MATERIALS DESIG-
NATION D6751 COMPOSED EXCLUSIVELY OF MONO-ALKYL ESTERS OF LONG CHAIN
FATTY ACIDS DERIVED FROM FEEDSTOCK.
(B) "BIOHEATING FUEL" SHALL MEAN A FUEL COMPRISED OF BIODIESEL BLENDED
WITH PETROLEUM HEATING OIL THAT MEETS THE SPECIFICATIONS OF THE AMERICAN
SOCIETY FOR TESTING AND MATERIALS DESIGNATION D396 OR OTHER SPECIFICA-
TIONS AS DETERMINED BY THE COMMISSIONER.
(C) "HEATING OIL" SHALL MEAN PETROLEUM OIL REFINED FOR THE PURPOSE OF
USE AS FUEL FOR COMBUSTION IN A SPACE AND/OR WATER HEATING SYSTEM THAT
MEETS THE SPECIFICATIONS OF THE AMERICAN SOCIETY FOR TESTING AND MATERI-
ALS DESIGNATION D396 OR OTHER SPECIFICATIONS AS DETERMINED BY THE
COMMISSIONER.
(D) "FEEDSTOCK" SHALL MEAN SOYBEAN OIL, OIL FROM ANNUAL COVER CROPS,
ALGAL OIL, BIOGENIC WASTE OILS, FATS OR GREASES, OR NON-FOOD GRADE CORN
OIL, PROVIDED THAT THE COMMISSIONER MAY, BY RULES AND REGULATIONS, MODI-
FY THE DEFINITION OF FEEDSTOCK BASED ON THE VEGETABLE OILS, ANIMAL FATS
OR CELLULOSIC BIOMASS LISTED IN TABLE 1 OF 40 C.F.R. S 80.1426.
(2) ON AND AFTER OCTOBER FIRST, TWO THOUSAND FOURTEEN, ALL HEATING OIL
SOLD FOR USE IN ANY BUILDING WITHIN THE COUNTIES OF NASSAU, ROCKLAND,
SUFFOLK, WESTCHESTER AND THE COUNTIES OF THE CITY OF NEW YORK SHALL BE
BIOHEATING FUEL THAT CONTAINS AT LEAST TWO PERCENT BIODIESEL.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13517-01-4
A. 8435 2
(3) ON AND AFTER JULY FIRST, TWO THOUSAND FIFTEEN, ALL HEATING OIL
SOLD FOR USE IN ANY BUILDING IN THE STATE SHALL BE BIOHEATING FUEL THAT
CONTAINS AT LEAST TWO PERCENT BIODIESEL.
(4) THE GOVERNOR MAY, BY ISSUING AN EXECUTIVE ORDER, TEMPORARILY
SUSPEND THE APPLICABILITY OF THIS SECTION AT ANY TIME BASED ON THE
GOVERNOR'S DETERMINATION, AFTER CONSULTING WITH THE NEW YORK STATE ENER-
GY RESEARCH AND DEVELOPMENT AUTHORITY AND THE DEPARTMENT, THAT MEETING
THE REQUIREMENT OF SUBDIVISION TWO OF THIS SECTION IS NOT FEASIBLE DUE
TO LACK OF ADEQUATE SUPPLY OF BIODIESEL OR THAT MEETING THE REQUIREMENT
WOULD RESULT IN UNDUE FINANCIAL HARDSHIP TO CONSUMERS.
(5) THE REQUIREMENTS OF THIS SECTION SHALL NOT: (A) PROHIBIT THE SALE
AND USE OF BIOHEATING FUEL WITH THE SAME OR ANY GREATER PERCENTAGE OF
BIODIESEL BLENDED WITH HEATING OIL, OR THE SALE AND USE OF ONE HUNDRED
PERCENT BIODIESEL, FOR SPACE AND/OR WATER HEATING PURPOSES IN THE STATE;
AND (B) PREEMPT ANY LAWS OF THE CITY OF NEW YORK WITH RESPECT TO
MANDATED PERCENTAGE LEVELS OF BIODIESEL BLENDS WITH HEATING OIL PROVIDED
THAT SUCH LAWS REQUIRE THE SAME OR GREATER PERCENTAGE OF BIODIESEL
BLENDED WITH HEATING OIL AS REQUIRED BY THIS SECTION.
S 2. Paragraph 1 and subparagraph (b) of paragraph 2 of subdivision
39 of section 210 of the tax law, paragraph 1 as amended by chapter 591
of the laws of 2011 and subparagraph (b) of paragraph 2 as added by
section 1 of part D of chapter 35 of the laws of 2006, are amended to
read as follows:
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for [bioheat] BIOHEATING FUEL, used for space heating or hot
water production for residential purposes within this state purchased on
or after July first, two thousand six and before July first, two thou-
sand seven and on or after January first, two thousand eight and before
January first, two thousand seventeen. Such credit shall be $0.01 per
percent of biodiesel per gallon of [bioheat] BIOHEATING FUEL, not to
exceed twenty cents per gallon, purchased by such taxpayer, PROVIDED,
HOWEVER:
(A) ON OR AFTER OCTOBER FIRST, TWO THOUSAND FOURTEEN, BIOHEATING FUEL
USED WITHIN THE COUNTIES OF NASSAU, ROCKLAND, SUFFOLK, WESTCHESTER AND
THE COUNTIES OF THE CITY OF NEW YORK, SHALL BE ELIGIBLE FOR THIS CREDIT
ONLY FOR GALLONS OF BIOHEATING FUEL WHICH CONTAIN A MINIMUM OF FIVE
PERCENT BIODIESEL AND THE AMOUNT OF SUCH CREDIT SHALL BE $.01 PER
PERCENT, IN EXCESS OF TWO PERCENT, OF BIODIESEL PER GALLON OF BIOHEATING
FUEL, NOT TO EXCEED EIGHTEEN CENTS PER GALLON, AND
(B) ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN, BIOHEATING FUEL USED
WITHIN THE STATE SHALL BE ELIGIBLE FOR THIS CREDIT ONLY FOR GALLONS OF
BIOHEATING FUEL WHICH CONTAIN A MINIMUM OF FIVE PERCENT BIODIESEL AND
THE AMOUNT OF SUCH CREDIT SHALL BE $.01 PER PERCENT, IN EXCESS OF TWO
PERCENT, OF BIODIESEL PER GALLON OF BIOHEATING FUEL, NOT TO EXCEED EIGH-
TEEN CENTS PER GALLON.
(b) ["Bioheat"] "BIOHEATING FUEL" shall mean a fuel comprised of biod-
iesel blended with conventional home heating oil, which meets the spec-
ifications of the American Society of Testing and Materials designation
D 396 or D 975.
S 3. Paragraph 1 and subparagraph (b) of paragraph 2 of subsection
(mm) of section 606 of the tax law, paragraph 1 as amended by chapter
193 of the laws of 2012 and subparagraph (b) of paragraph 2 as added by
section 2 of part D of chapter 35 of the laws of 2006, are amended to
read as follows:
A. 8435 3
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for [bioheat] BIOHEATING FUEL, used for space heating or hot
water production for residential purposes within this state and
purchased on or after July first, two thousand six and before July
first, two thousand seven and on or after January first, two thousand
eight and before January first, two thousand seventeen. Such credit
shall be $0.01 per percent of biodiesel per gallon of [bioheat] BIOHEAT-
ING FUEL, not to exceed twenty cents per gallon, purchased by such
taxpayer, PROVIDED, HOWEVER:
(A) ON OR AFTER OCTOBER FIRST, TWO THOUSAND FOURTEEN, BIOHEATING FUEL
USED WITHIN THE COUNTIES OF NASSAU, ROCKLAND, SUFFOLK, WESTCHESTER AND
THE COUNTIES OF THE CITY OF NEW YORK, SHALL BE ELIGIBLE FOR THIS CREDIT
ONLY FOR GALLONS OF BIOHEATING FUEL WHICH CONTAIN A MINIMUM OF FIVE
PERCENT BIODIESEL AND THE AMOUNT OF SUCH CREDIT SHALL BE $.01 PER
PERCENT, IN EXCESS OF TWO PERCENT, OF BIODIESEL PER GALLON OF BIOHEATING
FUEL, NOT TO EXCEED EIGHTEEN CENTS PER GALLON, AND
(B) ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN, BIOHEATING FUEL USED
WITHIN THE STATE SHALL BE ELIGIBLE FOR THIS CREDIT ONLY FOR GALLONS OF
BIOHEATING FUEL WHICH CONTAIN A MINIMUM OF FIVE PERCENT BIODIESEL AND
THE AMOUNT OF SUCH CREDIT SHALL BE $.01 PER PERCENT, IN EXCESS OF TWO
PERCENT, OF BIODIESEL PER GALLON OF BIOHEATING FUEL, NOT TO EXCEED EIGH-
TEEN CENTS PER GALLON.
(b) ["Bioheat"] "BIOHEATING FUEL" shall mean a fuel comprised of biod-
iesel blended with conventional home heating oil, which meets the spec-
ifications of the American Society of Testing and Materials designation
D 396 or D 975.
S 4. This act shall take effect immediately.