BILL NUMBER:S7313

TITLE OF BILL:

An act
to amend the environmental conservation law, in relation to amending the
liquified natural and petroleum gas act to exempt the storage and
transportation of small quantities of liquified natural gas used as a
transportation fuel or a replacement for diesel

PURPOSE:

To amend the liquefied natural and petroleum gas act to exempt the
storage and transportation of small quantities of liquefied natural
gas (LNG) to facilitate LNG fueling and the use of LNG as a
replacement for diesel.

SUMMARY OF PROVISIONS:

Section 1 amends section 23-1706 of the environmental conservation law
to provide an exemption for the storage of up to 50,000 gallons of
LNG and associated transportation activities provided that all
transportation and storage activities conform to federal regulations
and codes administered by the National Fire Protection Association.

Section 2 is the effective date.
              

JUSTIFICATION:

Liquefied natural gas (LNG) is a domestic alternative fuel for heavy
duty trucking. LNG is becoming popular because it is cheaper and
cleaner than diesel - and it is a domestic energy source. The need
for LNG as a transportation fuel is well documented in several
studies commissioned or prepared by NYSERDA. A recent 2011 study
documents, among other things, the safety of LNG and the economic
benefit that would result from an amendment to the law to allow LNG
for transportation purposes.

Further, LNG provides an effective range that is consistent with the
range for diesel. As a result, engine manufacturers are developing
engines that are fueled by LNG. Major fleet operators are making the
shift to natural gas as a fuel, with LNG being a fuel of choice
because of the cost savings and environmental benefits (e.g. lower
exhaust emissions).

By providing an exemption for the storage and transportation of LNG,
this legislation will reduce emissions, encourage the use of a
domestic energy source, and promote economic activity and benefits
within New York.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:


None.

EFFECTIVE DATE:

Immediately.