NY State Senate Bill 2023-S4753

Senate Bill S4753

2023-2024 Legislative Session

Relates to license fees per barrel of petroleum ship through the state for use outside the state

download bill text pdf

Current Bill Status - In Senate Committee Environmental Conservation 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to environmental conservation
Feb 14, 2023	referred to environmental conservation

2023-S4753 (ACTIVE) - Details

Current Committee:: Senate Environmental Conservation
Law Section:: Navigation Law
Laws Affected:: Amd §174, Nav L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6233
2017-2018: S2640
2019-2020: S3264
2021-2022: S6162

2023-S4753 (ACTIVE) - Summary

Relates to license fees per barrel of petroleum shipped through the state for use outside the state by facilities within 1 mile of a similar facility in another state.

2023-S4753 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4753

SPONSOR: LANZA
 
TITLE OF BILL:

An act to amend the navigation law, in relation to license fees per
barrel of petroleum

 
PURPOSE OR GENERAL IDEA OF BILL:

To establish a more competitive level playing field for certain oil
storage facilities located near out of state locations.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - Amends the navigation law by restoring oil spill fund
licensing fees to pre-2015 levels for certain storage facilities

Section 2 - Amends the navigation law by restoring the credit for
barrels of product transferred through a facility in New York and then
exported out of state for certain storage facilities

 
JUSTIFICATION:

For far too long, New York's working families and businesses have
suffered from a disproportionate and unfair taxation system wherein
competitive interests in New Jersey have an overwhelming advantage.
Nowhere is there a more egregious example of this disproportionality
than the ever-increasing bridge tolls in and out of New York City,
particularly on Staten Island.

As a result of a dramatic increase of oil-by-rail shipments, in 2015 a
new state law chanced the was in which the state's so-called "Oil Spill
Fund" is funded by increasing license fees across the state for facili-
ties that transfer and store petroleum products. The stated intent of
the new law mitigate risk associated with the volume of crude oil being
transported through New York by rail and create a funding stream for
first responder training and equipment associated with the shipment of
oil by rail.

The vast amount of crude oil storage facilities are located upstate, and
none are located within the New York City Metropolitan area. The new fee
increase aims to address problems created by upstate crude oil trans-
port, but places downstate non-crude oil storage facilities at a
distinct competitive disadvantage, particularly those located near New
Jersey ports who pay no oil spill fees.

Having much the same adverse impact of bridge tolls, the increase in the
oil spill license fee on non-crude facilities will cause many shippers
to leave New York for New Jersey, where there are more than a dozen
terminals willing to capitalize on their lower tax rate.  Another fee
increase will ultimately lead to the closure of New York terminals and
the loss of quality jobs as these businesses move to New Jersey, a
common occurrence we must not allow to continue. This bill would simply
reset the license fee for certain downstate terminals to pre-2015 levels
making them more competitive with similar operators in New Jersey.

 
PRIOR LEGISLATIVE HISTORY:

2022: S.6162-Referred to Environmental Conservation

2021: S.6162- Referred to Environmental Conservation

2020: S.3264- Referred to Environmental Conservation

2019: S.3264- Referred to Environmental Conservation

2018: S.2640- Referred to Environmental Conservation/A.972- Referred to
Environmental Conservation

2017: S.2640 - Passed Senate/A.972-Referred to Environmental Conserva-
tion;

2016: S.6233 - Passed Senate/A.8628 - Referred to Environmental Conser-
vation

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S4753 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4753
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed 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.
                                                            LBD08739-01-3

 S. 4753                             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.

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