New York State Senator | 43rd Senate District | Joseph L. Bruno

SENATOR BRUNO PROMOTES ALTERNATIVE FUEL MEASURES AND URGES ACTION FOR N.Y. CONSUMERS ON GAS PRICES

Answers Sought from State Agencies on Gas Pricing Enforcement Efforts

Thursday, June 14, 2007

Senator Joseph L. Bruno today announced legislation to promote the development, use, and availability of alternative fuels in an effort to encourage energy independence and reduce reliance on foreign oil. In addition, Senator Bruno called upon the Department of Taxation and Finance to publicly disclose information regarding their efforts to monitor and enforce the Fuel Sales Tax Cap that was enacted into law last year.

"Gas prices continue to impact the financial bottom line for families all across this state," Senator Bruno said.
"By promoting alternative fuels and working to strengthen the State's tax cap enforcement efforts, we can provide much needed relief to families, individuals and businesses all across our State."

PROMOTING ENERGY INDEPENDENCE AND ALTERNATIVE FUELS

The Senate Majority will be advancing a number of initiatives designed to promote energy independence and consumer choice by encouraging the production and availability of alternative fuels.

The Senate�s efforts to promote the expanded use of alternative fuels include the following:

� Biofuel Distribution: While the state has invested over $25 million in new ethanol production facilities and created both biofuel production tax credits and a grant program to assist private service stations install alternative fuel pumps, the lack of distribution infrastructure has made biofuels generally unavailable to New York State motorists. The Senate is expected to act on legislation next week, sponsored by Senator Skelos and Senator Griffo (S.6160), providing a refundable, 25 percent tax credit for the installation of tanks, piping and other equipment necessary to store, mix and distribute biofuels

� Cellulosic Ethanol: On May 29, the Senate unanimously voted to approve a new Cellulosic Ethanol Production Tax Credit as part of its "Upstate Now" job creation and economic growth agenda. This credit is designed to assist New York-based businesses that are involved in the production of ethanol, and will help to encourage additional production and investment going forward.

With the Senate�s support, a number of new ethanol production facilities are now being developed across Upstate New York, bringing new jobs and millions of dollars in new investment to the region.

� Hybrid Vehicles: On June 6, the Senate voted to approve legislation that will exempt the sale of hybrid vehicles and high efficiency vehicles from State sales and compensating use taxes, and authorize cities and counties to grant such exemptions (S.3947 - Senator Skelos).

� Ethanol and Biofuels: On June 7, the Senate passed S.5389, sponsored by Senator Wright. Similar to the provision included in the "Upstate Now" package, this bill includes the production of cellulosic ethanol within the biofuel production tax credit to provide an additional tax credit for production of cellulosic ethanol.

� School Bus Pilot Program: With NYSERDA support, a measure will be advanced that will work to establish a pilot program in 2 or more school districts to evaluate the use of 20 percent biodiesel blends. The program would include evaluation of emission benefits, maintenance costs, fuel economy and other performance related factors.

� Alternative Fuel Loan Program: Legislation will be introduced to establish a new Alternative Energy Revolving Loan Program for alternative energy projects in New York. The program would offer a package of loans to reduce the cost of biomass or other alternative fuel production projects.

ENFORCEMENT OF EXISTING TAX CUTS

Last year, the State Legislature approved legislation to provide New Yorkers with relief from high gas prices by capping and reducing the sales taxes on gasoline. The bill capped the State sales taxes on gas at 8-cents per gallon, effectively freezing the tax at the $2 per gallon rate.

The 2006 Sales Tax Cap legislation included provisions designed to ensure that distributors and sellers actually pass savings on to consumers, and it specifically empowered the Department of Taxation and Finance, in conjunction with the State Consumer Protection Board, to monitor and enforce the tax cap. Those in violation can be subject to a civil penalty of up to $5,000 per incident, per day.

Specifically, the Senate Majority issued a public call for the following information:

� What steps have the Department of Taxation and Finance and Consumer Protection Board taken to monitor compliance with the law, and to ensure that tax savings are actually being passed on to consumers?

� How many violations have been uncovered?

� Exactly how many civil penalty fines have been imposed to date?

1 Chapter 35 of the Laws of 2006 capped the State sales tax on motor fuel and diesel motor fuel at a taxable value of $2 per gallon, effective June 1, 2006.

[BIOGRAPHY] [DISTRICT MAP] [PHOTO GALLERY] [LEGISLATION] [CONSTITUENT SERVICES] [GUESTBOOK] [PRIVACY POLICY] [SENATE INSIDER] [CONTACT INFO] [HOME/NEWS]

Site Services by: L&P Media