S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    972
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 10, 2017
                                ___________
 
 Introduced  by  M. of A. CUSICK, TITONE -- read once and referred to the
   Committee on Environmental Conservation
 
 AN ACT to amend the navigation law, in  relation  to  license  fees  per
   barrel of petroleum
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph (a) of subdivision 4 of section 174 of the  navi-
 gation  law, as amended by section 1 of part X of chapter 58 of the laws
 of 2015, is amended to read as follows:
   (a) The license fee shall be nine and one-half cents per barrel trans-
 ferred, UNLESS THE MAJOR FACILITY IS LOCATED WITHIN ONE MILE OF A FACIL-
 ITY IN AN ADJOINING STATE, WHICH IF SUCH FACILITY IN ANOTHER  STATE  WAS
 LOCATED  IN THIS STATE WOULD BE A MAJOR FACILITY, THEN SUCH FEE SHALL BE
 ONE CENT PER BARREL TRANSFERRED, provided, however, that the fee on  any
 barrel,  including  any  products derived therefrom, subject to multiple
 transfer, shall be imposed only once at the  point  of  first  transfer.
 Provided further, the license fee for major facilities that (i) transfer
 barrels  for their own use, and (ii) do not sell or transfer the product
 subject to such license fee, shall be eight cents. In each  fiscal  year
 following  any  year  in which the balance of the account established by
 paragraph (a) of subdivision two of section one hundred seventy-nine  of
 this  article  equals  or  exceeds forty million dollars, no license fee
 shall be imposed unless (a) the current balance in such account is  less
 than  thirty-five  million  dollars  or  (b) pending claims against such
 account exceed fifty percent of the existing balance of such account. In
 the event of either such occurrence and upon  certification  thereof  by
 the  state  comptroller,  the administrator shall within ten days of the
 date of such certification reimpose the license fee,  which  shall  take
 effect on the first day of the month following such relevy. The rate may
 be  set  at  less than nine and one-half cents per barrel transferred if
 the administrator determines that the revenue  produced  by  such  lower
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02243-01-7

 A. 972                              2
 
 rate  shall be sufficient to pay outstanding claims against such account
 within one year of such imposition  of  the  license  fee.  Should  such
 account  exceed  forty  million  dollars,  as  a result of interest, the
 administrator  and  the commissioner of environmental conservation shall
 report to the legislature and the governor concerning  the  options  for
 the  use  of  such interest. The fee established by this paragraph shall
 not be imposed upon any barrel which is  transferred  to  a  land  based
 facility  but  thereafter  exported  from this state for use outside the
 state and is shipped to  facilities  outside  the  state  regardless  of
 whether the delivery or sale of such petroleum occurs in this state.
   §  2. Subdivision 4 of section 174 of the navigation law is amended by
 adding a new paragraph (e) to read as follows:
   (E) NOTWITHSTANDING PARAGRAPH (D) OF THIS SUBDIVISION,  THE  SURCHARGE
 ESTABLISHED  BY  PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE ONE AND ONE-
 HALF CENTS PER BARREL FOR ANY BARREL THAT IS TRANSFERRED  INTO  A  MAJOR
 FACILITY  LOCATED  WITHIN  ONE MILE OF A FACILITY IN AN ADJOINING STATE,
 WHICH IF SUCH FACILITY IN ANOTHER STATE WAS LOCATED IN THIS STATE  WOULD
 BE  A  MAJOR  FACILITY,  AND THEREAFTER EXPORTED FROM THIS STATE FOR USE
 OUTSIDE THE STATE AS DESCRIBED BY PARAGRAPH (A) OF THIS SUBDIVISION.
   § 3. This act shall take effect immediately.