Provides that diesel fuel that contains a concentration of sulfur that is less than or equal to fifteen parts per million shall not be sold or offered for sale unless such diesel fuel includes biodiesel as its lubrication additive.

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S2651A-2011 Actions

• Jan 4, 2012: REFERRED TO ENVIRONMENTAL CONSERVATION
• Dec 7, 2011: PRINT NUMBER 2651A
• Dec 7, 2011: AMEND AND RECOMMIT TO ENVIRONMENTAL CONSERVATION
• Jan 27, 2011: REFERRED TO ENVIRONMENTAL CONSERVATION

S2651A-2011 Memo

BILL NUMBER:S2651A

TITLE OF BILL:
An act to amend the environmental conservation law and the agriculture
and markets law, in relation to the sale of diesel fuel

PURPOSE:
This  bill  amends  the  agriculture  and markets law to encourage the
growth of the biodiesel industry in New York State  by  requiring  the
use of biodiesel in low sulfur diesel fuel. The provisions of the bill
do not take effect until New York State has annual production capacity
of  12  million gallons of biodiesel and either the Federal government
has reduced the tax on biodiesel fuel, or it is after June 30, 2013.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds  the  definition  of  biodiesel  to  the  Environmental
Conservation Law.

Section  2  requires the Commissioner of Environmental Conservation to
cooperate with the  Department  of  Agriculture  and  Markets  on  the
efficient transition to the use of biodiesel in the State.

Section  3  adds  the  definition  of biodiesel to the Agriculture and
Markets law.

Section 4 requires the use of biodiesel as a lubrication  additive  in
diesel  fuel  with  a  sulfur content lower than 15 parts per million;
only if the Commissioner of Agriculture and Markets has certified that
the annual production capacity of biodiesel in the  State  exceeds  12
million  gallons, and either the Federal government reduces the tax on
diesel fuel containing biodiesel or the date  of  June  30,  2013  has
passed.

JUSTIFICATION:
In  June  2006,  the  Federal  Environmental  Protection  Agency began
phasing in for the transportation sector the use of Ultra  Low  Sulfur
Diesel Fuel (ULSD), fuel containing not more than 15 parts per million
of  sulfur.  The  ULSD  must  replace  sulfur with an additive to help
lubricate  the  diesel  engines  or  the  engines  will  be   damaged,
substantially reducing their useful life.

Current   technology   provides   two   equally   good  additives  for
lubrication. One is a synthetic made from a petroleum  based  product.
The  other  is 100% biodiesel made from agricultural products or waste
food greases. Both additives can be  produced  for  approximately  the
same price.

This  legislation  will  provide the incentive for the construction of
biodiesel refineries  in  New  York  State  to  meet  the  demand  for
lubrication additives.  Investors are prepared to build such plants as
long  as  there  are assurances in the demand of biodiesel. Passage of
this legislation will create a demand in excess of 25 million  gallons
of 100% biodiesel in New York State alone.

The  use  of  biodiesel  as  an  additive  will make ULSD an even more
environmentally  friendly  product  and  will  ensure  that  Federally


designated  non-attainment  areas, such as metropolitan New York City,
have the cleanest possible fuel for vehicles.

PRIOR LEGISLATIVE HISTORY:
S.7528 of 2004; Passed Assembly
S.4470 of 2005/2006; Referred to Environmental Conservation
S.3838 of 2007/2008; Referred to Environmental Conservation
S.998  of 2009/2010; Referred to Environmental Conservation

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately, with provisions.

S2651A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   2651--A

                         2011-2012 Regular Sessions

                              I N  SENATE

                              January 27, 2011
                                 ___________

  Introduced  by  Sens.  GRISANTI,  MARCELLINO  --  read twice and ordered
    printed, and when printed to be committed to the Committee on Environ-
    mental Conservation -- committee  discharged,  bill  amended,  ordered
    reprinted as amended and recommitted to said committee

  AN  ACT  to amend the environmental conservation law and the agriculture
    and markets law, in relation to the sale of diesel fuel

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Section  19-0107 of the environmental conservation law is
  amended by adding a new subdivision 25 to read as follows:

    25. "BIODIESEL FUEL" MEANS  A  RENEWABLE,  BIODEGRADABLE,  MONO  ALKYL
  ESTER  COMBUSTIBLE  LIQUID  FUEL DERIVED FROM AGRICULTURAL PLANT OILS OR
  ANIMAL FATS AND THAT MEETS AMERICAN SOCIETY FOR  TESTING  AND  MATERIALS
  SPECIFICATION D6751 FOR BIODIESEL FUEL (B100) BLEND STOCK FOR DISTILLATE
  FUELS AS UPDATED.
    S  2.  Subdivision 2 of section 19-0301 of the environmental conserva-
  tion law is amended by adding a new paragraph f to read as follows:

    F. COOPERATE WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS TO  ENSURE
  AN  EFFICIENT TRANSITION TO THE USE OF BIODIESEL FUEL AS THE LUBRICATION
  ADDITIVE FOR LOW-SULFUR DIESEL FUEL.
    S 3. Subdivision 1 of section 192-c of the agriculture and markets law
  is amended by adding a new paragraph k to read as follows:

    K. "BIODIESEL FUEL" MEANS A RENEWABLE, BIODEGRADABLE, MONO ALKYL ESTER
  COMBUSTIBLE LIQUID FUEL DERIVED FROM AGRICULTURAL PLANT OILS  OR  ANIMAL
  FATS  AND THAT MEETS AMERICAN SOCIETY FOR TESTING AND MATERIALS SPECIFI-
  CATION D6751 FOR BIODIESEL FUEL (B100) BLEND STOCK FOR DISTILLATE  FUELS
  AS UPDATED.
    S  4.  Subdivisions  11, 12 and 13 of section 192-c of the agriculture
  and markets law are renumbered subdivisions 12, 13  and  14  and  a  new
  subdivision 11 is added to read as follows:


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD06958-02-1

 S. 2651--A                          2

    11.  A. UPON THE SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPH
  B OF THIS SUBDIVISION AND UPON PUBLICATION IN THE STATE REGISTER OF  THE
  CERTIFICATION  SET  FORTH  IN  SUBPARAGRAPH  (I)  OF PARAGRAPH B OF THIS
  SUBDIVISION AND, IF OCCURRING BEFORE JUNE THIRTIETH, TWO THOUSAND  FOUR-
  TEEN  THE  CERTIFICATION SET FORTH IN CLAUSE (A) OF SUBPARAGRAPH (II) OF
  PARAGRAPH B OF THIS SUBDIVISION, A PERSON SHALL NOT SELL  OR  OFFER  FOR
  SALE  DIESEL  FUEL  THAT CONTAINS A CONCENTRATION OF SULFUR THAT IS LESS
  THAN OR EQUAL TO FIFTEEN PARTS  PER  MILLION  UNLESS  SUCH  DIESEL  FUEL
  INCLUDES BIODIESEL FUEL AS ITS LUBRICATION ADDITIVE.
    B. NO PERSON SHALL BE SUBJECT TO THE PROVISIONS OF PARAGRAPH A OF THIS
  SUBDIVISION UNTIL THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II)
  OF THIS PARAGRAPH HAVE BEEN SATISFIED:

    (I)  THIRTY  DAYS AFTER THE COMMISSIONER HAS CERTIFIED THAT THE ANNUAL
  CAPACITY FOR THE PRODUCTION OF BIODIESEL  FUEL  IN  THIS  STATE  EXCEEDS
  TWELVE MILLION GALLONS; AND
    (II) THE EARLIER OF:

    (A)  EIGHTEEN  MONTHS  AFTER THE COMMISSIONER CERTIFIES THAT A FEDERAL
  ACTION ON TAXES IMPOSED, TAX CREDITS ALLOWED OR OTHER ACTION  CREATES  A
  TWO  CENT  OR GREATER REDUCTION IN THE PRICE ON TAXABLE DIESEL FUEL THAT
  CONTAINS AT LEAST TWO PERCENT BIODIESEL FUEL THAT IS SOLD IN THIS STATE;
  OR
    (B) JUNE THIRTIETH, TWO THOUSAND FOURTEEN.
    S 5. This act shall take effect immediately, provided that the commis-
  sioner of agriculture and markets  shall  notify  the  legislative  bill
  drafting  commission upon the occurrence of the certifications set forth
  in section four of this act in order that the commission may maintain an
  accurate and timely effective data base of the official text of the laws
  of the state of New York in furtherance of effecting the  provisions  of
  section  44  of the legislative law and section 70-b of the public offi-
  cers law.