Wednesday, March 23, 2011

Low Probability of Low-Sulfur Delay

(The following is based on an internal memorandum secured by the New York Times)
Low sulfur-oil for heating appears likely to be implemented on time in July 2012, as the Senate may drop their support of a delay until 2014. A decision to end their opposition would most likely stem from the revelation that the switch has no fiscal impact.
Originally, the Senate’s position revolved around their argument that the transition would be costly, with Republicans opposing the initial bill when they were in the minority. Supposedly, the Republican Majority may drop their proposed delay as industry officials have indicated that they already have invested in distribution infrastructure to accommodate a smooth transition within the current deadline.
This logic seems questionable, as oil industry and environmental groups repeatedly highlighted the low costs in switching, but the argument appeared to fall on deaf ears during its inception.
The Assembly’s position has not been formally announced, but it is now clear that the Gov. Andrew Cuomo’s administration is opposed to the delay. The delayed implementation was originally proposed by the governor’s Mandate Relief Team, although it wasn’t included in the executive budget.

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