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.
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.
STATE OF NEW YORK ________________________________________________________________________ 2651--A 2011-2012 Regular Sessions IN 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.