NY State Senate Bill 2021-S2721

Senate Bill S2721

2021-2022 Legislative Session

Requires the governor's tax expenditure reporting to include an enumeration of all fossil fuel related tax expenditures

download bill text pdf

Archive: Last Bill Status - Stricken

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 19, 2021	recommit, enacting clause stricken
Jan 22, 2021	referred to budget and revenue

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2021-S2721 (ACTIVE) - Details

See Assembly Version of this Bill:: A225
Law Section:: Executive Law
Laws Affected:: Amd §181, Exec L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6881, A8675
2019-2020: S2649, A257
2023-2024: A7230

2021-S2721 (ACTIVE) - Summary

Requires the governor's tax expenditure reporting to include an enumeration of all fossil fuel related tax expenditures; imposes a 5 year expiration upon any fossil fuel related tax expenditures enacted.

2021-S2721 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2721

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the executive law, in relation to requiring an annual
report of all fossil fuel related tax expenditures; and to provide for
the expiration of fossil fuel related tax expenditures

 
PURPOSE:

To require the Governor to submit an annual enumeration of fossil fuel
related tax expenditures, including recommendations regarding continua-
tion, modification or repeal of such expenditures; and to provide for
the expiration of all such expenditures within 5 years unless renewed
through legislative action.

 
SUMMARY OF PROVISIONS:

Section 1: Legislative findings.

Section 2: Definitions.

Section 3: Adds two new paragraphs to subdivision 2 of section 181 of
the executive law, requiring the Governor to submit information identi-
fying whether a tax expenditure is a fossil fuel related tax expenditure
and the impact of such expenditures in regard to economic growth, jobs,
individual cost of living and fossil fuel emissions.

The Governor shall also make recommendations regarding continuing, modi-
fying or repealing such expenditures, in consultation with the state
Energy Planning Board.

Section 4: Creates a 5-year expiration for all existing and newly-enact-
ed fossil fuel related tax expenditures.

 
JUSTIFICATION:

New York State spends over $1.5 billion every year on fossil fuel
related tax expenditures, distorting the market and subsidizing the use
of greenhouse gas-emitting fossil fuels. Some of these tax expenditures
may serve a compelling public interest such as offering heating assist-
ance to low-income New Yorkers. However, a significant proportion of the
spending serves to prop-up outdated industries or reward energy ineffi-
ciencies leading to a double cost to taxpayers once for the direct tax
expenditure and again for the environmental damage resulting from the
continued burning of fossil fuels.

To address the real and serious threat to the health, welfare and pros-
perity of all New Yorkers posed by human-caused climate change, New York
State has a goal of reducing greenhouse gas emissions by 80% below 1990
levels by 2050. Continuing to subsidize the use of fossil fuels delays
the adoption of cleaner alternatives,' creates barriers to achieving our
climate goals and wastes precious taxpayer money.

This bill would require the Governor's annual Tax Expenditure Report to
include evaluations of all fossil fuel related tax expenditures, as well
as recommendations by the Governor regarding the continuation, modifica-
tion or repeal of such expenditures. The Governor's recommendation would
be made in consultation with the state Energy Planning Board, whose
members include representatives of NYSERDA, PSC, DEC, ESD, DOT, DOH,
DOL, DAM, Legislative appointees and others.

The bill also implements a 5-year sunset provision for all current and
future fossil fuel related tax expenditures, providing such expenditures
would not otherwise expire at an earlier date. The Legislature may, of
course, choose to renew any tax expenditure that it deems to be in the
public interest. This will create an evaluation process through which
outdated, counterproductive fossil fuel subsidies can be allowed to
expire, while those that provide a real benefit to New Yorkers can be
retained.

 
LEGISLATIVE HISTORY:

2019-20 S2649-C/A257-C Cahill - Passed Senate

2017-18 S6881/A8675 Cahill - died in committee

 
FISCAL IMPLICATIONS:

Subject to evaluation by the Governor. Potential of millions of dollars
in savings to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S2721 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2721
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2021
                                ___________
 
 Introduced by Sens. KRUEGER, BIAGGI, BROOKS, GOUNARDES, HOYLMAN, KAPLAN,
   LIU,  MAY,  MYRIE,  RIVERA, SALAZAR, SERRANO -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Budget
   and Revenue
 
 AN  ACT  to  amend the executive law, in relation to requiring an annual
   report of all fossil fuel related tax expenditures; and to provide for
   the expiration of fossil fuel related tax expenditures
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings.  The  legislature hereby finds and
 declares that the use of fossil fuels result  in  greenhouse  gas  emis-
 sions.  The  state  has  a  goal of reducing greenhouse gas emissions by
 eighty percent below 1990 levels  by  2050  to  combat  climate  change.
 Therefore,  the  state has an interest in reducing tax expenditures that
 support fossil fuels. By creating a process through which  the  legisla-
 ture  would  review  existing  fossil fuel tax expenditures on a regular
 basis, the state can better ensure that they are in the public interest.
   § 2. Subdivision 1 of section 181 of the executive law is  amended  by
 adding two new paragraphs (c) and (d) to read as follows:
   (C)  "FOSSIL  FUEL" SHALL HAVE THE SAME DEFINITION AS IN SECTION 1-103
 OF THE ENERGY LAW AND INCLUDE BIODIESEL.
   (D) "FOSSIL FUEL RELATED TAX EXPENDITURES" SHALL MEAN TAX EXPENDITURES
 THAT DIRECTLY SUPPORT THE PRODUCTION, TRANSMISSION, DISTRIBUTION, TRANS-
 PORTATION, STORAGE, SALE, PURCHASE OR DELIVERY OF FOSSIL FUELS.
   § 3. The opening paragraph and paragraphs (f) and (g) of subdivision 2
 of section 181 of the executive law, the opening paragraph as amended by
 chapter 309 of the laws of 1996 and paragraphs (f) and (g) as  added  by
 chapter  23  of the laws of 1990, are amended and two new paragraphs (h)
 and (i) are added to read as follows:
   In addition to the  information  required  by  article  seven  of  the
 constitution and section twenty-two of the state finance law, the gover-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01469-01-1

 S. 2721                             2
 
 nor  shall submit to the legislature AND MAKE AVAILABLE TO THE PUBLIC ON
 THE WEBSITES OF THE STATE DIVISION OF BUDGET AND THE  EXECUTIVE  OFFICE,
 AND  ANY  OTHER  LOCATION DEEMED NECESSARY TO ENSURE EASE OF ACCESS, [as
 early  as  practicable,  but no later than thirty days after] CONCURRENT
 WITH submitting the budget, a  tax  expenditure  report  containing  the
 following  information  and  statements  relating to tax expenditures in
 articles nine (other than section one  hundred  eighty),  nine-A,  thir-
 teen-A,  twenty-two,  twenty-eight, thirty-one[, thirty-two] and thirty-
 three of the tax law:
   (f) comment, if any, on the effectiveness and efficiency of other  tax
 expenditures; [and]
   (g)  general  cautionary  and advisory notes concerning limitations of
 data, estimation procedures, sampling errors and imputed values,  promi-
 nently displayed[.];
   (H) INFORMATION IDENTIFYING WHETHER A TAX EXPENDITURE IS A FOSSIL FUEL
 RELATED TAX EXPENDITURE AND IF SO, PROVIDE ADDITIONAL INFORMATION ON THE
 IMPACT OF SUCH EXPENDITURES IN REGARD TO ECONOMIC GROWTH, JOBS, INDIVID-
 UAL COST OF LIVING AND FOSSIL FUEL EMISSIONS; AND
   (I)  ANY RECOMMENDATIONS OF THE GOVERNOR REGARDING CONTINUING, MODIFY-
 ING OR REPEALING ANY IDENTIFIED FOSSIL FUEL  RELATED  TAX  EXPENDITURES,
 AND  SUCH  OTHER  INFORMATION  REGARDING  SUCH  FOSSIL  FUEL RELATED TAX
 EXPENDITURES AS HE OR SHE MAY FEEL USEFUL AND APPROPRIATE, IN  CONSULTA-
 TION WITH THE STATE ENERGY PLANNING BOARD.
   §  4.  Notwithstanding any other provisions of law, there shall be a 5
 year expiration for all fossil fuel related tax expenditures, as defined
 in paragraph (d) of subdivision 1 of section 181 of the  executive  law,
 with  such  5  year period commencing on the effective date of this act;
 provided, however, that if such an expenditure would otherwise expire or
 be deemed repealed pursuant to law  upon  an  earlier  date,  then  such
 expenditure  shall  expire or be deemed repealed upon such earlier date.
 Any new fossil fuel related tax expenditure enacted by  the  legislature
 after  the effective date of this act shall be subject to a 5 year expi-
 ration commencing on the effective date of the act  which  enacted  such
 expenditure unless otherwise specified by the legislature at that time.
   § 5. This act shall take effect immediately.

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