Requires the governor's tax expenditure reporting to include an enumeration of all fossil fuel related tax expenditures; imposes a 5 year expiration upon any fossil fuel related tax expenditures enacted.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7230
SPONSOR: Simon
 
TITLE OF BILL:
An act to amend the executive law, in relation to requiring an annual
report of all fossil fuel related tax expenditures; and to provide for
the expiration of fossil fuel related tax expenditures
 
PURPOSE:
To require the Governor to submit an annual enumeration of fossil fuel
related tax expenditures, including recommendations regarding continua-
tion, modification or repeal of such expenditures; and to provide for
the expiration of all such expenditures within 5 years unless renewed
through legislative action.
 
SUMMARY OF PROVISIONS:
Section 1: Legislative findings. Section 2: Definitions.
Section 3: Adds two new paragraphs to subdivision 2 of section 181 of
the executive law, requiring the Governor to submit information identi-
fying whether a tax expenditure is a fossil fuel related tax expenditure
and the impact of such expenditures in regard to economic growth, jobs,
individual cost of living and fossil fuel emissions. The Governor shall
also make recommendations regarding continuing, modifying or repealing
such expenditures, in consultation with the state Energy Planning Board.
Section 4: Creates a 5-year expiration for all existing and newly-enact-
ed fossil fuel related tax expenditures.
 
JUSTIFICATION:
New York State spends over $1.5 billion every year on fossil fuel
related tax expenditures, distorting the market and subsidizing the use
of greenhouse gas-emitting fossil fuels. Some of these tax expenditures
may serve a compelling public interest such as offering heating assist-
ance to low-income New Yorkers. However, a significant proportion of the
spending serves to prop-up outdated industries or reward energy ineffi-
ciencies leading to a double cost to taxpayers once for the direct tax
expenditure and again for the environmental damage resulting from the
continued burning of fossil fuels.
To address the real and serious threat to the health, welfare and pros-
perity of all New Yorkers posed by human-caused climate change, New York
State has a goal of reducing greenhouse gas emissions by 80% below 1990
levels by 2050. Continuing to subsidize the use of fossil fuels delays
the adoption of cleaner alternatives, creates barriers to achieving our
climate goals and wastes precious taxpayer money. This bill would
require the Governor's annual Tax Expenditure Report to include evalu-
ations of all fossil fuel related tax expenditures, as well as recommen-
dations by the Governor regarding the continuation, modification or
repeal of such expenditures. The Governor's recommendation would be made
in consultation with the state Energy Planning Board, whose members
include representatives of NYSERDA, PSC, DEC, ESD, DOT, DOH, DOL, am,
Legislative appointees and others.
The bill also implements a 5-year sunset provision for all current and
future fossil fuel related tax expenditures, providing such expenditures
would not otherwise expire at an earlier date. The Legislature may, of
course, choose to renew any tax expenditure that it deems to be in the
public interest. This will create an evaluation process through which
outdated, counterproductive fossil fuel subsidies can be allowed to
expire, while those that provide a real benefit to New Yorkers can be
retained.
 
LEGISLATIVE HISTORY:
2021-22: A225 -Cahill -referred to governmental operations
2019-20: A257C - Amended and referred to Governmental Operations
2017-18: A8675 - Referred to Governmental Operations
 
FISCAL IMPLICATIONS:
Subject to evaluation by the Governor. Potential of millions of dollars
in savings to the State.
 
EFFECTIVE DATE:
this act shall take effect immediately .
STATE OF NEW YORK
________________________________________________________________________
7230
2023-2024 Regular Sessions
IN ASSEMBLY
May 15, 2023
___________
Introduced by M. of A. SIMON, ROZIC, EPSTEIN, L. ROSENTHAL, WEPRIN,
COLTON, STECK, STIRPE, GONZALEZ-ROJAS -- read once and referred to the
Committee on Governmental Operations
AN ACT to amend the executive law, in relation to requiring an annual
report of all fossil fuel related tax expenditures; and to provide for
the expiration of fossil fuel related tax expenditures
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative findings. The legislature hereby finds and
2 declares that the use of fossil fuels result in greenhouse gas emis-
3 sions. The state has a goal of reducing greenhouse gas emissions by
4 eighty percent below 1990 levels by 2050 to combat climate change.
5 Therefore, the state has an interest in reducing tax expenditures that
6 support fossil fuels. By creating a process through which the legisla-
7 ture would review existing fossil fuel tax expenditures on a regular
8 basis, the state can better ensure that they are in the public interest.
9 § 2. Subdivision 1 of section 181 of the executive law is amended by
10 adding two new paragraphs (c) and (d) to read as follows:
11 (c) "Fossil fuel" shall have the same definition as in section 1-103
12 of the energy law and include biodiesel.
13 (d) "Fossil fuel related tax expenditures" shall mean tax expenditures
14 that directly support the production, transmission, distribution, trans-
15 portation, storage, sale, purchase or delivery of fossil fuels.
16 § 3. The opening paragraph and paragraphs (f) and (g) of subdivision 2
17 of section 181 of the executive law, the opening paragraph as amended by
18 chapter 309 of the laws of 1996 and paragraphs (f) and (g) as added by
19 chapter 23 of the laws of 1990, are amended and two new paragraphs (h)
20 and (i) are added to read as follows:
21 In addition to the information required by article seven of the
22 constitution and section twenty-two of the state finance law, the gover-
23 nor shall submit to the legislature and make available to the public on
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09686-01-3
A. 7230 2
1 the websites of the state division of budget and the executive office,
2 and any other location deemed necessary to ensure ease of access, [as
3 early as practicable, but no later than thirty days after] concurrent
4 with submitting the budget, a tax expenditure report containing the
5 following information and statements relating to tax expenditures in
6 articles nine (other than section one hundred eighty), nine-A, thir-
7 teen-A, twenty-two, twenty-eight, thirty-one[, thirty-two] and thirty-
8 three of the tax law:
9 (f) comment, if any, on the effectiveness and efficiency of other tax
10 expenditures; [and]
11 (g) general cautionary and advisory notes concerning limitations of
12 data, estimation procedures, sampling errors and imputed values, promi-
13 nently displayed[.];
14 (h) information identifying whether a tax expenditure is a fossil fuel
15 related tax expenditure and if so, provide additional information on the
16 impact of such expenditures in regard to economic growth, jobs, individ-
17 ual cost of living and fossil fuel emissions; and
18 (i) any recommendations of the governor regarding continuing, modify-
19 ing or repealing any identified fossil fuel related tax expenditures,
20 and such other information regarding such fossil fuel related tax
21 expenditures as he or she may feel useful and appropriate, in consulta-
22 tion with the state energy planning board.
23 § 4. Notwithstanding any other provisions of law, there shall be a 5
24 year expiration for all fossil fuel related tax expenditures, as defined
25 in paragraph (d) of subdivision 1 of section 181 of the executive law,
26 with such 5 year period commencing on the effective date of this act;
27 provided, however, that if such an expenditure would otherwise expire or
28 be deemed repealed pursuant to law upon an earlier date, then such
29 expenditure shall expire or be deemed repealed upon such earlier date.
30 Any new fossil fuel related tax expenditure enacted by the legislature
31 after the effective date of this act shall be subject to a 5 year expi-
32 ration commencing on the effective date of the act which enacted such
33 expenditure unless otherwise specified by the legislature at that time.
34 § 5. This act shall take effect immediately.