The Biobased and Renewable Products Advocacy Group (BRAG) helps members develop and bring to market their innovative biobased and renewable chemical products through insightful policy and regulatory advocacy. BRAG is managed by B&C® Consortia Management, L.L.C., an affiliate of Bergeson & Campbell, P.C.

By Kathleen M. Roberts

The National Biodiesel Board (NBB) announced that on September 13, 2017, New York Governor Andrew Cuomo signed legislation that introduces bioheating fuel tax credits and bioheating fuel tax requirements to three New York counties.  The bill (S5422A) requires all home heating oil sold for use in Nassau, Suffolk, and Westchester counties on or after July 1, 2018, to contain at least five percent biodiesel (B5).  Assemblyman Steve Englebright and Senator Phil Boyle sponsored the bill, which received broad support from a range of industry and environmental advocates.  New York City, the largest municipal consumer of heating oil in the country, instituted a citywide two percent biodiesel requirement in 2012, which increases to five percent on October 1, 2017.  With the new legislation, the entire New York City Metropolitan Area, representing approximately 70 percent of the state’s heating oil market, will have a five percent biodiesel blending requirement.  NBB commended Governor Cuomo for signing the bill, stating that it will provide cleaner air for more New Yorkers and support local jobs in the clean energy sector.


 

The New York State Clean Heating Fuel Tax Credit has been extended through 2020.  The personal income tax credit, which was initially authorized in 2006, is provided to eligible taxpayers for biodiesel purchases used for residential space and water heating.  For each percent of biodiesel blended with conventional home heating oil, a tax credit of $0.01/gallon is available up to a maximum of $0.20/gallon.  A partial credit will be calculated for buildings with a shared oil storage tank for residential and non-residential space that is based on the percentage of residential square footage.  A refund will be provided to taxpayers whose allowable credit exceeds their liability for that year.

Tags: New York, Tax, Fuel

 

On September 28, 2016, the City of New York passed a bill, 47 to three, increasing the amount of biodiesel in the city’s heating oil.  Heating oil in New York City currently contains two percent biodiesel, which will increase to five percent on October 1, 2017, ten percent in 2025, 15 percent in 2030, and 20 percent in 2034.  The first increase from a two to five percent biodiesel blend is expected to reduce an equivalent amount of emissions, taking 45,000 cars off the road, with the final target of a 20 percent reduction of emissions equivalent to removing over 250,000 cars.  This legislation, which is expected to be signed by Mayor Bill de Blasio, is part of New York City’s target to reach an 80 percent reduction in carbon emissions between 2005 and 2050.


 

On June 25, 2015, the 2015 New York State Energy Plan was released, outlining a 40 percent reduction in emissions of greenhouse gases (GHG) from 1990 to 2030 and an 80 percent reduction by 2050. The aggressive plan would achieve the reduction in GHG emissions through changes to power, transportation, buildings, and industry with the goal of at least half of the state's electricity coming from renewable sources, including biomass, wind, and solar, by 2030. Energy consumption in buildings will also be reduced by 23 percent from 2012 levels by 2030. This decrease in energy consumption of buildings is the most cost effective way to reduce energy use due to the large number of inefficient buildings that can be upgraded at relatively low expense.