senate Bill S7517

2013-2014 Legislative Session

Relates to development of biomethane as a fuel alternative and creates the biomethane fuel incentive fund; appr

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Archive: Last Bill Status - In Committee


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

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May 15, 2014 referred to finance

S7517 - Bill Details

Current Committee:
Senate Finance
Law Section:
Appropriations
Laws Affected:
Add §1884, amd §1851, Pub Auth L; add §99-w, St Fin L; amd §§1148, 606 & 210, add §187-t, Tax L

S7517 - Bill Texts

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Relates to development of biomethane as a fuel alternative; creates the biomethane fuel incentive fund and provides tax credits for installation or conversion of fueling stations; appropriates funds therefor.

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BILL NUMBER:S7517

TITLE OF BILL: An act to amend the public authorities law, the state
finance law and the tax law, in relation to development of biomethane
as a fuel alternative and creating the biomethane fuel incentive fund;
and making an appropriation therefor

PURPOSE:

Relates to development of biomethane as a fuel alternative and creates
the biomethane fuel incentive fund

SUMMARY OF PROVISIONS:

Section 1 amends the public authorities law by adding a new section
1884 to allow the New York state energy research and development
authority to establish a biomethane grant program

Section 2 adds a new subdivision 14 to Section 351 of the public
authorities law to define "biomethane"

Section 3 adds a new section 99-w to the state finance law to create
the Biomethane fuel incentive fund

Section 4 amends Section 1148 of the tax law, as amended by section 57
of part HH of chapter 57 of the laws of 2013

Section 5 adds a new subsection ccc to Section 606 of the tax law that
creates an alternative fuel credit for installation or conversion of
fueling stations

Section 6 adds a new clause (xli) to subparagraph (B) of paragraph 1
of subsection (i) of Section 606 of the tax law

Section 7 adds a subdivision 50 to section 210 of the tax law that
outlines the requirements for the alternative fuel credit for
installation or conversion of fueling stations

Section 8 adds a new section 187-t to the tax law that also outlines
the requirements for the alternative fuel credit for installation or
conversion of fueling stations

Section 9 appropriates eighty million dollars ($80,000,000), or so
much thereof as maybe necessary and outlines the distribution of those
funds

Section 10 states that this act shall take effect 180 days after it
shall become law, provided, however, that the commissioner of taxation
and finance is authorized on and after the date that the act shall
become law to adopt and amend rules or regulations to properly
implement the provisions of this act

JUSTIFICATION:

Renewable Natural Gas, also known as RNG or biomethane, is chemically
identical to fossil natural gas but much cleaner, and the first
commercially viable, sustainable transportation fuel that can greatly


reduce consumption of diesel fuel. RNG is made from biogases that emit
as organic waste that break down in environments with no air. It is
produced from many biomass and biogas sources including municipal
wastewater, landfill gas, and solid waste. It is a renewable fuel that
can be used from light-duty vehicles to heavy-duty freight trucks.
Buses and trucks make up just 4% of all vehicles but they use 23% of
all highway fuel that is almost all high-carbon diesel produced from
foreign sources of oil. With today's technologies, organic wastes
thrown away daily in cities and towns in New York State could be
turned into fuel. National estimates are that organic wastes could
displace 16% of all diesel fuel consumed in the United States.

New York State's more than 2.5 million buses and trucks consume close
to 1.1 billion gallons of on-highway diesel fuel annually. This fuel
constitutes a transfer of wealth of more than $4 billion to
out-of-state and foreign entities. New York State has the opportunity
to act now to create new jobs and empower New York State's economy.
The cost of this grant program will be paid for many times over by the
new money that will stay in New York State. This is a sound investment
that is poised to provide great economic and environmental returns for
all New Yorkers.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This bill would appropriate eighty million ($80,000,000.00) from the
general fund for grants and tax credits to create the jobs of tomorrow
in the renewable energy sector and reduce the amount of money New
Yorkers send to foreign entities for their fuel.

EFFECTIVE DATE:

This act shall take effect 180 days after it shall become law.

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

                                  7517

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  GIPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the public authorities law, the state  finance  law  and
  the tax law, in relation to development of biomethane as a fuel alter-
  native  and creating the biomethane fuel incentive fund; and making an
  appropriation therefor

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

  Section  1.  The  public  authorities  law  is amended by adding a new
section 1884 to read as follows:
  S 1884. BIOMETHANE GRANTS. THE NEW  YORK  STATE  ENERGY  RESEARCH  AND
DEVELOPMENT AUTHORITY SHALL:
  1.  OVERSEE AND PROMOTE RESEARCH AND DEVELOPMENT REGARDING FUEL DIVER-
SIFICATION AND ENERGY EFFICIENCY IN THE TRANSPORTATION SECTOR; AND
  2. PROVIDE GRANTS FOR:
  (A) THE COMPONENTS OF  THE  BIOMETHANE  FUEL  PATHWAY,  INCLUDING  THE
COMPONENTS  REQUIRED  TO  PRODUCE  BIOMETHANE,  INCLUDING  LAND,  BIOGAS
COLLECTION SYSTEMS, ANEROBIC DIGESTERS, AND BIOGAS REFINERY;
  (B) MUNICIPAL PURCHASES OF LIGHT-DUTY VEHICLES TO  HEAVY-DUTY  FREIGHT
TRUCKS THAT USE BIOMETHANE; AND
  (C) INSTALLATION OF BIOMETHANE FUELING EQUIPMENT.
  S 2. Section 1851 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19.  "BIOMETHANE"  SHALL  MEAN  BIOGASES  THAT  ARE EMITTED AS ORGANIC
WASTES BREAK DOWN IN AIRLESS ENVIRONMENTS. BIOMETHANE IS PRODUCED FROM A
VARIETY OF BIOMASS AND/OR BIOGAS SOURCES INCLUDING LANDFILL  GAS,  SOLID
WASTE,  MUNICIPAL  WASTEWATER  AND AGRICULTURAL MANURE VIA AIRLESS TANKS
CALLED ANAEROBIC DIGESTERS. IT CAN ALSO BE PRODUCED FROM  OTHER  SOURCES
SUCH  AS  FORESTRY AND AGRICULTURAL WASTE THROUGH THE PROCESS OF THERMAL
GASIFICATION AND METHANATION, ALTHOUGH THESE TECHNOLOGIES  ARE  NOT  YET
WIDELY  USED. BIOMETHANE IS A RENEWABLE FUEL, EASILY DISTRIBUTED THROUGH
EXISTING INFRASTRUCTURE AND IS SUITABLE FOR APPLICATIONS FROM LIGHT-DUTY
VEHICLES TO HEAVY-DUTY FREIGHT TRUCKS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15219-01-4

S. 7517                             2

  S 3. The state finance law is amended by adding a new section 99-w  to
read as follows:
  S 99-W. BIOMETHANE FUEL INCENTIVE FUND. 1. THERE IS HEREBY ESTABLISHED
IN  THE  JOINT  CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE A SPECIAL REVENUE FUND TO BE KNOWN AS THE "BIOMETH-
ANE FUEL INCENTIVE FUND".
  2. THE FUND SHALL CONSIST OF THE AMOUNT OF REVENUES FROM  SALES  TAXES
IMPOSED  ON THE RECEIPTS OF THE PRICE OF MOTOR AND DIESEL FUEL MORE THAN
ONE DOLLAR OR EQUAL TO OR LESS THAN TWO DOLLARS.
  3. MONIES OF THE FUND, WHEN ALLOCATED,  SHALL  BE  DISBURSED  FOR  THE
FOLLOWING PURPOSES:
  (A)  CREDITS  AGAINST  PERSONAL INCOME TAX AND CORPORATE FRANCHISE TAX
FOR THE INSTALLATION OR CONVERSION OF FUELING  STATIONS  FOR  BIOMETHANE
FUELS;
  (B)  GRANTS FOR RESEARCH AND DEVELOPMENT IN REGARDS TO BIOMETHANE FUEL
PRODUCTION AND USE IN THE TRANSPORTATION SECTOR;
  (C) GRANTS FOR THE COMPONENTS OF THE BIOMETHANE FUEL PATHWAY,  INCLUD-
ING  THE  COMPONENTS  REQUIRED  TO  PRODUCE  BIOMETHANE, INCLUDING LAND,
BIOGAS COLLECTION SYSTEMS, ANEROBIC DIGESTERS, AND BIOGAS REFINERY;
  (D) GRANTS FOR MUNICIPAL PURCHASES OF  LIGHT-DUTY  VEHICLES  TO  HEAVY
DUTY FREIGHT TRUCKS THAT USE BIOMETHANE FUEL;
  (E) GRANTS FOR THE INSTALLATION OF BIOMETHANE FUELING EQUIPMENT; AND
  (F)  ADMINISTRATIVE  COSTS  BORNE  BY  THE  DEPARTMENT OF TAXATION AND
FINANCE AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORI-
TY.
  S  4. Section 1148 of the tax law, as amended by section 57 of part HH
of chapter 57 of the laws of 2013, is amended to read as follows:
  S 1148. Deposit and disposition of revenue. All  taxes,  interest  and
penalties  collected  or received by the commissioner under this article
shall be deposited and disposed of pursuant to the provisions of section
one hundred seventy-one-a of this chapter; provided however,  the  comp-
troller  shall  on or before the twelfth day of each month, pay all such
taxes, interest and penalties collected under this article and remaining
to the comptroller's credit in  such  banks,  banking  houses  or  trust
companies  at  the  close  of  business on the last day of the preceding
month, into the general fund of the state treasury, except as  otherwise
provided in sections ninety-two-d, ninety-two-h, [and], ninety-two-r AND
NINETY-TWO-W  of  the state finance law and sections eleven hundred two,
eleven hundred four and eleven hundred nine of this article.
  S 5. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF FUEL-
ING STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER  SHALL  BE  ALLOWED  A
CREDIT,  TO BE COMPUTED HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY
THIS ARTICLE FOR THE COST OF INSTALLATION  CONSTRUCTION,  RECONSTRUCTION
OR ACQUISITION OF AN BIOMETHANE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE  TO THE STORAGE, OR DISPENSING OF BIOMETHANE FUELS TO MOTOR
VEHICLES. THE INCOME TAX CREDIT WOULD BE THIRTY  PERCENT  OF  THE  COSTS
ASSOCIATED WITH SUCH EXPENSES.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR,  FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. THE BALANCE OF SUCH CREDIT NOT CREDITED  OR  REFUNDED  IN  SUCH
TAXABLE  YEAR  MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE

S. 7517                             3

YEAR AND MAY BE DEDUCTED FROM THE TAXPAYER'S  TAX  FOR  SUCH  YEAR.  THE
EXCESS,  IF  ANY,  OF  THE  AMOUNT  OF  THE CREDIT OVER THE TAX FOR SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
follows:
(XLI) ALTERNATIVE FUEL CREDIT        AMOUNT OF CREDIT
FOR INSTALLATION OR                  UNDER SUBDIVISION
CONSERVATION OF FUELING              FIFTY OF SECTION
STATIONS UNDER SUBSECTION            TWO HUNDRED TEN
(CCC)
  S 7. Section 210 of the tax law is amended by adding a new subdivision
50 to read as follows:
  50. ALTERNATIVE FUEL CREDIT FOR INSTALLATION OR CONVERSION OF  FUELING
STATIONS. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT,
TO  BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS
ARTICLE FOR THE COST OF  INSTALLATION  CONSTRUCTION,  RECONSTRUCTION  OR
ACQUISITION  OF  AN ALTERNATIVE FUEL REFUELING FACILITY THAT IS DIRECTLY
ATTRIBUTABLE TO THE STORAGE,  COMPRESSION,  CHARGING  OR  DISPENSING  OF
ALTERNATIVE  FUELS  TO  MOTOR VEHICLES.   THE INCOME TAX CREDIT SHALL BE
THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT DESCRIBED IN PARAGRAPH (D) OF SUBDIVISION  ONE  OF  THIS
SECTION.  IF  THE  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX  FOR  SUCH  YEAR,  FIFTY
PERCENT  OF  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF
THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR
MAY  BE  CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS,  IF  ANY,
OF  THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL
BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE  CREDITED  OR  REFUNDED  AS
PROVIDED  IN  SECTION  SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 8. The tax law is amended by adding a new section 187-t to  read  as
follows:
  S  187-T.  ALTERNATIVE  FUEL  CREDIT FOR INSTALLATION OR CONVERSION OF
FUELING STATIONS. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX  IMPOSED
BY  THIS  ARTICLE  FOR  THE  COST  OF  INSTALLATION CONSTRUCTION, RECON-
STRUCTION OR ACQUISITION OF AN ALTERNATIVE FUEL REFUELING FACILITY  THAT
IS  DIRECTLY  ATTRIBUTABLE  TO  THE  STORAGE,  COMPRESSION,  CHARGING OR
DISPENSING OF ALTERNATIVE FUELS TO MOTOR VEHICLES. THE INCOME TAX CREDIT
SHALL BE THIRTY PERCENT OF THE COSTS ASSOCIATED WITH SUCH EXPENSES.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S  TAX  FOR  SUCH
YEAR,  FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
THEREON. THE BALANCE OF SUCH CREDIT NOT CREDITED  OR  REFUNDED  IN  SUCH
TAXABLE  YEAR  MAY BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE
YEAR AND MAY BE DEDUCTED FROM THE TAXPAYER'S  TAX  FOR  SUCH  YEAR.  THE

S. 7517                             4

EXCESS,  IF  ANY,  OF  THE  AMOUNT  OF  THE CREDIT OVER THE TAX FOR SUCH
SUCCEEDING YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS  CHAP-
TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 9. The sum of eighty million dollars ($80,000,000), or so much ther-
eof  as  may  be  necessary,  is  hereby appropriated as follows: twenty
million dollars for research and development in  regards  to  biomethane
fuel  production and biomethane use in the transportation sector; thirty
million dollars for grants for the components  of  the  biomethane  fuel
pathway,  including  the  components  required  to  produce  biomethane,
including land,  biogas  collection  systems,  anerobic  digesters,  and
biogas  refinery;  twenty  million  in grants for municipal purchases of
light-duty vehicles to heavy-duty freight  trucks  that  use  biomethane
fuel; five million for grants for the installation of biomethane fueling
equipment;  and  five  million  for  administrative  costs  borne by the
department of taxation  and  finance  and  the  New  York  state  energy
research  and  development  authority  to the department of taxation and
finance; out of moneys in the state treasury in the general fund to  the
credit  of  the  biomethane fuel incentive fund, not otherwise appropri-
ated, and made immediately available, for the purpose  of  carrying  out
the  provisions  of  this act. Such moneys shall be payable on the audit
and warrant of the comptroller on vouchers certified or approved in  the
manner prescribed by law.
  S  10.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a  law;  provided,  however,  that  effective
immediately,  the  commissioner of taxation and finance shall be author-
ized to adopt and amend any rules or regulations and to take  any  steps
necessary to implement the provisions of this act.

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