S T A T E O F N E W Y O R K
________________________________________________________________________
5422--A
2017-2018 Regular Sessions
I N S E N A T E
March 27, 2017
___________
Introduced by Sens. BOYLE, AVELLA, CROCI, HANNON, LATIMER, PHILLIPS,
SANDERS, SAVINO -- read twice and ordered printed, and when printed to
be committed to the Committee on Environmental Conservation --
reported favorably from said committee and committed to the Committee
on Finance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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-
ING OIL THAT MEETS THE SPECIFICATIONS OF ASTM D975, OR OTHER SPECIFICA-
TIONS AS DETERMINED BY THE COMMISSIONER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10699-06-7
S. 5422--A 2
(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:
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
S. 5422--A 3
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.
