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.