NY State Senate Bill 2019-S4542

Senate Bill S4542

2019-2020 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to finance
Mar 14, 2019	referred to finance

co-Sponsors

2019-S4542 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Appropriations
Laws Affected:: Add §1884, amd §1851, Pub Auth L; add §99-g, St Fin L; amd §§1148, 606 & 210-B, add §187-q, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7517
2015-2016: S2506
2017-2018: S2195

2019-S4542 (ACTIVE) - Summary

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.

2019-S4542 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4542

SPONSOR: PARKER
 
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 19 to Section 1851 of the public
authorities law to define "biomethane"

Section 3 adds a new section 99-y 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 convers ion 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 49 to section 210-B of the tax law that
outlines the requirements for the alternative fuel credit for installa-
tion 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 conver-
sion 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 tax ation
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 commer-
cially 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 waste-
water, 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:

2017-18: S.2195 - REFERRED TO FINANCE
2014: S.7517(Gipson) - Referred to Finance
2015: S.2506 - Referred to Finance
2016: S.2506A - Referred to Finance

 
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 York-
ers send to foreign entities for their fuel.

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

2019-S4542 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4542
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 14, 2019
                                ___________
 
 Introduced  by  Sens.  PARKER, COMRIE -- 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:
   § 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, ANAEROBIC 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10260-01-9

 S. 4542                             2
 
 EXISTING INFRASTRUCTURE AND IS SUITABLE FOR APPLICATIONS FROM LIGHT-DUTY
 VEHICLES TO HEAVY-DUTY FREIGHT TRUCKS.
   §  3. The state finance law is amended by adding a new section 99-g to
 read as follows:
   § 99-G. 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, ANAEROBIC 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.
   § 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:
   §  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-NINE-G  of the state finance law and sections eleven hundred two,
 eleven hundred four and eleven hundred nine of this article.
   § 5. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  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 A 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

 S. 4542                             3
 
 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  ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 (XLIV) ALTERNATIVE FUEL CREDIT       AMOUNT OF CREDIT
 FOR INSTALLATION OR                  UNDER SUBDIVISION
 CONSERVATION OF FUELING              FIFTY-THREE OF SECTION
 STATIONS UNDER SUBSECTION            TWO HUNDRED TEN-B
 (JJJ)
   §  7. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. 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.
   § 8. The tax law is amended by adding a new section 187-q to  read  as
 follows:
   §  187-Q.  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

 S. 4542                             4
 
 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 CHAP-
 TER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 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,  anaerobic 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.
   § 10. This act shall take effect on  the  one  hundred  eightieth  day
 after it shall have become a law. Effective immediately, the commission-
 er  of  taxation  and finance shall be authorized 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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Senate Bill S4542

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Sponsored By

Kevin S. Parker