S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6954--A
                                                            R. R. 678
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 27, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ENGLEBRIGHT, GALEF, RAMOS, LAVINE, ABINANTI,
   D'URSO, HARRIS, COLTON, RAIA, JEAN-PIERRE, SEPULVEDA, QUART,  CARROLL,
   KAVANAGH -- Multi-Sponsored by -- M. of A. HOOPER, THIELE -- read once
   and  referred  to  the  Committee  on  Environmental  Conservation  --
   reported and referred to the Committee on Ways and Means  --  reported
   and referred to the Committee on Rules -- amended on the special order
   of third reading, ordered reprinted as amended, retaining its place on
   the special order of third reading
 
 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:
 § 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) "RENEWABLE HYDROCARBON DIESEL" SHALL MEAN A  DOMESTICALLY-PRODUCED
 FUEL  DERIVED  FROM  VEGETABLE  OILS,  ANIMAL  FATS, AND OTHER RENEWABLE
 FEEDSTOCKS THAT MEET THE MOST RECENT SPECIFICATIONS OF ASTM D975. RENEW-
 ABLE HYDROCARBON SHALL NOT INCLUDE ANY FUEL  FROM  CO-PROCESSED  BIOMASS
 WITH A FEEDSTOCK THAT IS NOT BIOMASS.
   (C) "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, A FUEL COMPRISED OF
 DOMESTICALLY-PRODUCED RENEWABLE HYDROCARBON DIESEL WITH PETROLEUM  HEAT-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10699-07-7

 A. 6954--A                          2
 
 ING  OIL THAT MEETS THE SPECIFICATIONS OF ASTM D975, OR OTHER SPECIFICA-
 TIONS AS DETERMINED BY THE COMMISSIONER.
   (D)  "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.
   (E) "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. § 80.1426.
   (2)  ON  AND  AFTER JULY FIRST, TWO THOUSAND EIGHTEEN, ALL HEATING OIL
 SOLD FOR USE IN ANY BUILDING WITHIN THE COUNTIES OF NASSAU, SUFFOLK  AND
 WESTCHESTER SHALL BE BIOHEATING FUEL THAT CONTAINS AT LEAST FIVE PERCENT
 BIODIESEL.
   (3)  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.
   (4) 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.
   § 2.  Paragraph (a) and subparagraph (ii) of paragraph (b) of subdivi-
 sion  25  of  section  210-B of the tax law, paragraph (a) as amended by
 section 1 of part N of chapter 60 of the laws of 2016  and  subparagraph
 (ii)  of paragraph (b) as added by section 17 of part A of chapter 59 of
 the laws of 2014, are amended to read as follows:
   (a) General. 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  before January first, two thousand twenty. 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, that on or after January first, two thou-
 sand seventeen, this credit shall not apply to [bioheat] BIOHEATING FUEL
 that is less than six percent biodiesel per gallon of [bioheat] BIOHEAT-
 ING FUEL.
   (ii) ["Bioheat"] "BIOHEATING FUEL" shall  mean  a  fuel  comprised  of
 biodiesel OR RENEWABLE HYDROCARBON DIESEL blended with conventional home
 heating  oil,  which meets the specifications of the American Society of
 Testing and Materials designation D 396 or D 975.
   § 3. Paragraph 1 and subparagraph (b) of  paragraph  2  of  subsection
 (mm)  of section 606 of the tax law, paragraph 1 as amended by section 2
 of part N of chapter 60 of the laws of  2016  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. 6954--A                          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 twenty. 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,  that on or after January first, two thousand seven-
 teen, this credit shall not apply to [bioheat] BIOHEATING FUEL  that  is
 less than six percent biodiesel per gallon of [bioheat] BIOHEATING FUEL.
   (b) ["Bioheat"] "BIOHEATING FUEL" shall mean a fuel comprised of biod-
 iesel  OR  RENEWABLE  HYDROCARBON  DIESEL blended with conventional home
 heating oil, which meets the specifications of the American  Society  of
 Testing and Materials designation D 396 or D 975.
   § 4. This act shall take effect immediately.