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Legislative Memo

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

BILL:

S.7313-A (Maziarz) / A.10779 (Cahill) / A.10793 (Camara)

  Support

SUBJECT:

Authorizes the siting of the Liquefied Natural and Petroleum Gas Storage Act

 

S.7313-A (Maziarz) / A.10779 (Cahill) / A.10793 (Camara)

DATE:

June 20, 2012

 

The Business Council of New York State supports this legislation. This bill amends Section 23-1706 of the Environmental Conservation Law to provide an exemption for the storage of up to 50,000 gallons of LNG provided that all transportation and storage activities conform to federal regulations and codes administered by the National Fire Protection Association.

Current law limits the siting of small LNG facilities. CNG storage on the other hand can be located in New York. CNG can be used to power smaller vehicles, generally passenger cars and small trucks.  But, LNG increasingly is being used in power tractor trailer trucks.

CNG is not a practical substitute for diesel with tractor-trailers. LNG requires only about 70 percent more space than diesel fuel. Compressed gas, in contrast, needs about six times as much space as diesel, even when squeezed down to 3,000 pounds per square inch.

From an energy and environmental standpoint, tractor–trailers could be excellent early adopters, because collectively they account for three-quarters of the fuel used by commercial vehicles. By one estimate, switching to LNG could reduce oil imports by more than a million barrels a day.

In today’s era of high energy prices, improving the State’s diversity and energy independence are ways to mitigate the impacts of fuel price increases on consumers, and improve supply reliability. This legislation will provide an opportunity for the State to increase diversity of fuel types, for this reason The Business Council of the State of New York supports this legislation.