logo
Published on NYLCV - New York League of Conservation Voters (http://www.nylcv.org)

A Closer Look At The State's Proposed Bioheat Tax Credit

By Michelle Subbiondo
Created 01/31/2008 - 10:05am

Rising prices have fueled greater interest in cleaner sources of heating oil.Rising prices have fueled greater interest in cleaner sources of heating oil.In an effort to reduce energy consumption and curb harmful greenhouse gas emissions, Gov. Eliot Spitzer [1] last month included a biofuel tax credit in his proposed 2008 executive budget. [2] The move heartened legislators and many environmentalists alike, who see biofuel as part of a multi-pronged strategy to ease New York's reliance on nonrenewable fuels.

"The bioheat tax credit is critically important because it will lead to cleaner air while spurring the development of clean, domestically produced renewable fuels," says Assemblyman Bob Sweeney [3] (D-Lindenhurst), chairman of the Assembly's Environmental Conservation Committee. "I am delighted that Governor Spitzer has included this credit in his budget proposal."

A bioheat tax credit was introduced last year by Sen. Carl Marcellino [4] (R-Oyster Bay), chairman of the Senate's Environmental Conservation Committee, and Sweeney. The measure passed both houses, but was vetoed by the governor last August. In his veto message, the governor expressed that he is "a strong advocate for reducing energy consumption and emissions in the state" but that "this agenda requires innovative and targeted initiatives which I will be proposing in next year's budget."

Home heating oil is essentially the same as diesel fuel, except there are virtually no limits to the level of sulfur that can be in it. Finding cleaner heating sources is particularly important in New York, where 2.6 million households rely on oil -- the greatest number of any state. By offering a tax credit of up to 20 cents per gallon, the state government would help create a market for home heating fuels made from soybean oil and other renewable sources.

"We should be doing everything possible to give this clean heating fuel a chance to succeed," says Joshua Nachowitz, NYLCV's statewide policy director. "The bioheat tax credit was clearly successful in encouraging homeowners to switch to bioheat. Restoring this vital incentive is the first, critical step towards adopting this clean, renewable and home-grown heating oil alternative."

The bioheat tax credit is one of many initiatives NYLCV will advocate for this year in Albany as part of our 2008 New York State Policy Agenda [4].

It's not just environmentalists who see the benefits of alternative sources of energy like bioheat. The medical community has known for years that the toxins emitted from burning oil are responsible for a myriad of bronchial and lung problems. Sulfur dioxide is listed by the U.S. Environmental Protection Agency as a human carcinogen shown to trigger asthma attacks. Even more troubling is that in New York, pollution from home heating oil is highly concentrated; over 79% of heating oil consumption occurs in the New York City metro area.

For that reason and others, NYLCV is partnering with other organizations like the American Lung Association of New York to pass the bioheat bill this year.

"We commend Governor Spitzer for being true to his word by pushing for progressive, environmentally-friendly initiatives that will have immediate positive effects on the cost of heating, and long-term positive effects on air quality," said Michael Seilback, senior director of Public Policy & Advocacy for the American Lung Association of New York State [5]. "Thanks to the leadership Governor Spitzer has shown, New York consumers will not have to endure another winter of paying a premium for the use of bioheat."



Source URL:
http://www.nylcv.org/ecopoliticsdaily/20080131_a_closer_look_at_the_states_proposed_bioheat_tax_credit