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Legislative Memo

Darren Suarez
Director of Government Affairs
T 518.465.7511
www.bcnys.org

BILL:

S.3028-B (Maziarz) / A.10393 (Sweeney MS)

Support

SUBJECT:

Bioheating Fuel Requirement

 

DATE:

June 13, 2012

 

The Business Council opposes this legislation that will require after October 1, 2012 all heating oil sold for use in any building within the counties of Nassau, Rockland, Suffolk, Westchester and the counties of the city of New York shall be bioheating fuel that contains at least two percent biodiesel. The legislation further requires that after July 1, 2013, all heating oil sold for use in any building in the state shall be bioheating fuel that contains at least two percent biodiesel.

The Business Council strongly supports consumer choice. New York consumers currently have opportunities to purchase B2-B20. Providing consumers an opportunity to purchase bioheat is considerably more advantageous than mandating that consumer purchase a specifically formulated product.

There are multiple facts that cause increase in home heating oil. Changes in the price of crude oil will generally affect the price of heating oil. Crude oil prices are determined by worldwide supply and demand. Constrained supply can result in substantive differences between localities.  Regional operating costs include wages and salaries, benefits, equipment, lease/rent, insurance, overhead, and State and local fees can increase costs.

New York State has very limited ability to affect the price of crude oil, but it has a significant ability to affect the supply, through the creation of boutique fuels, and through regional operating cost. This legislation would result in New York State contributing to the high cost of heating individual homes.

While we support the use of cleaner burning fuels for heating residential and commercial buildings, we are concerned that this measure will increase prices on oil providers who will be forced to make major capital investments to meet the requirements of this bill. These costs will ultimately get passed on to consumers.

For these reasons The Business Council recommends against adoption of S.3028-B/A.10393.