New York Incentives and Laws for Biodiesel
The list below contains summaries of all New York incentives and laws related to Biodiesel.
State Incentives
Biofuel Production Tax Credit
Biofuel producers in New York State are eligible for a state tax credit of $0.15 per gallon of biodiesel (B100) or ethanol produced after the production facility has produced, and made available for sale, 40,000 gallons of biofuel per year. The maximum credit available is $2.5 million per taxpayer per taxable year for no more than four consecutive taxable years per production facility. If the taxpayer is in a partnership or is a shareholder of a New York S corporation, the maximum credit amount is applied at the entity level, so the aggregate credit allowed to all partners or shareholders may not exceed $2.5 million. Additional requirements may apply. This credit expires December 31, 2011. (Reference New York Tax Law 28*2 and 187-c)
Biofuel Fueling Infrastructure Funding
The New York State Energy Research and Development Authority (NYSERDA) administers the Biofuel Station Initiative Program, which provides funding to retail fueling stations offering E85 and biodiesel blends in the state, and to petroleum terminal operators to store, blend, and dispense biofuels. NYSERDA provides a reimbursement of up to 50% of new biofuel dispensing installation costs, including equipment, storage tanks, and associated piping equipment, up to $50,000 per site. NYSERDA also provides a cost reimbursement of up to 50% for new biofuel storage, handling, blending, and rack dispensing equipment, including installation costs, up to $150,000 per site. NYSERDA accepts applications from public access retail fueling station owners and operators in the state. Funding is limited and does not cover facility permitting or engineering costs. A 50% cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and facility staff training. For more information, see the NYSERDA Transportation Programs website.
Alternative Fuel Bus and Infrastructure Funding
The New York State Energy Research and Development Authority (NYSERDA) administers the Clean Fueled Bus Program, which provides funds to state and local transit agencies, municipalities, and schools for up to 100% of the incremental cost of purchasing new alternative fuel buses and associated infrastructure. For the purposes of this program, an alternative fuel bus is any motor vehicle with a seating capacity of at least 15 passengers used to transport passengers on public highways that is powered by compressed natural gas (CNG) (including dual-fuel technology that is factory built and certified or a new diesel engine with a minimum of 75% use of CNG during typical operation), propane, methanol, hydrogen, biodiesel, or ethanol, or uses electricity as a primary fuel source (e.g., hybrid electric). Eligible infrastructure projects include fueling equipment installations including, but not limited to, electric vehicle battery charging stations and natural gas fueling stations and depots. A qualified infrastructure project must be necessary to introduce or expand an alternative fuel bus fleet and the funding only covers the cost for items directly associated with making the facility capable of dispensing the fuel. For more information, see the NYSERDA Transportation Programs website.
Alternative Fuel Vehicle (AFV) Technical Assistance
The New York State Energy Research and Development Authority (NYSERDA) manages the New York State Clean Cities Sharing Network (Network), which provides technical, policy, and program information about AFVs. Membership is open to all organizations, businesses, and individuals interested in AFVs and members are notified about upcoming funding opportunities and events. The Network publishes information about tax incentives, fueling stations, case studies, and contact information for the Clean Cities program and other industry leaders. The Network also organizes and sponsors technical workshops. For more information, see the NYSERDA Transportation Programs website.
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Technical Assistance
The New York State Energy Research and Development Authority's (NYSERDA) Flexible Technical (FlexTech) Assistance Program provides assistance to public, private, and not-for-profit organization fleet managers who want to evaluate the feasibility and cost of adding AFVs and fueling facilities to their operations. Low-cost training for vehicle mechanics is also available through certified institutions. For more information, see the NYSERDA Transportation Programs website.
Alternative Fuel Product Development Funding
The New York State Energy Research and Development Authority's (NYSERDA) Transportation Research Program sponsors a wide variety of product development efforts aimed at improving efficiency and increasing the use of alternative fuels. Program Opportunity Notices are issued periodically to solicit proposals for cost-share development efforts leading to the manufacture and sale of innovative products that provide energy, environmental and economic development benefits. For more information, see the NYSERDA Transportation and Power Systems website.
Laws and Regulations
Fuel Exclusivity Contract Regulation
Motor fuel franchise dealers may obtain alternative fuels from a supplier other than a franchise distributor. Any franchise provision that prohibits or discourages a dealer from purchasing or selling E85, biodiesel blends of at least 2% (B2), hydrogen, or compressed natural gas from a firm or individual other than the distributor is null and void as it pertains to that particular alternative fuel if the distributor does not supply or offer to supply the dealer with the alternative fuel. Distributors who violate the law by entering into exclusivity contracts will be subject to a $1000 fine. If the distributor does offer renewable fuels, they may require the station to use their brands. (Reference New York General Business Law 199-j)
Alternative Fuel Vehicle (AFV) Acquisition Requirements
All new light-duty vehicles that state agencies and other affected entities procure must be AFVs, with the exception of designated specialty, police, or emergency vehicles. Hybrid electric vehicles qualify under these requirements. State agencies and other affected entities that operate medium- and heavy-duty vehicles must implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. State agencies and other affected entities may substitute the use of 450 gallons of 100% biodiesl (B100) for the acquisition of one AFV. Alternatively, using 2,250 gallons of biodiesel blends of 20% (B20) or 9,000 gallons of biodiesel blends of 5% (B5) may also be substituted in place of purchasing one AFV. No more than 50% of a given state agency fleet's AFV purchase requirement may be met by substituting B100, B20, or B5. (Reference Executive Orders 111, 2001, and 42, 2005, and Executive Order 9,2008)
