Low-Sulfur Oil Under Attack by Senate GOP

The implementation of low-sulfur oil for home heating in New York could be delayed and weakened, as the Republican Majority in the Senate is again trying to push back the July 2012 schedule to 2014.
While in the minority, Senate Republicans voted against this initial proposal in 2010, but lost out. A month ago, as the majority, they added this proposal to their version of the budget. But after three-way negotiations and some outcry from environmental and health groups, it was not included in the final package.
Now, being sponsored by the party's #2 guy, Tom Libous, the Senate Republicans are again pushing for a delay until the summer of 2014. Not only would it delay the stricter sulfur standards, it would also relax them by over thirty times, as the maximum allowable sulfur content would go from 15 parts per million to 500 parts per million.
The memo from Libous argues that the current deadline would lead to higher prices, which has been routinely refuted by proponents of the deadline, which includes oil suppliers, like Oil Heat Manufacturers of Central & Eastern NY and the New York Oil Heating Association. “Savings would quickly outweigh the short term jump in price,” said Michael Seilback, the vice president of public policy for the American Lung Association in New York (in March), “and that’s exclusive of the health care savings.”
Additionally, the memo contends that implementation would be costly and not time sensitive, which was flatly rejected by the bill memo that created the low-sulfur guidelines.

Next for the Legislature

Like the day god rested after creating man, the New York State Legislature took Friday off after passing the budget, but legislative leaders claim they have a lot left to accomplish.
One of those things is the millionaire's tax, which was left out of the budget and is likely to become an issue for Speaker Sheldon Sillver, D-Manhattan. Shortly after the budget was completed he announced, "Although “the millionaire’s tax” was not included in the final budget agreement, we will continue our efforts to convince our partners that it was and is the right thing to do at this time."
In a video statement, Senate Majority Leader Dean Skelos, R-Rockville Centre, promised that from the momentum of the budget passing the government would deliver on a property tax cap and mandate relief.
Notable proposals that are currently scheduled to be addressed in the committee process on the following week include...
Monday:
- SB 2212, from Republican Senator Marty Golden, which would increase the maximum income eligibility levels for real property tax exemptions for seniors.
Tuesday:
- Ken Adams may finally move through the committee process in his quest to become head of the Empire State Development Corporation. He starts at 9 a.m. in Senate Corporations, Authorities and Commissions before ultimately ending up in Senate Finance, with the nomination of former Senator Darrel Aubertine (as head of farming?).
- The Assembly Higher Ed Committee will consider a AB 6801 from chairwoman Deb Glick, which deals with purchasing of goods for SUNY (and that's all I know because there was no bill memo on Thursday night).
- SB 6536, from Democratic Assemblyman Pete Abbate, will be addressed in Government Employees Committee. His proposal prohibits public employers from diminishing the health insurance benefits and contributions of retired public employees.
Wednesday:
- IDC leader Jeff Klein will have SB 3838, which provides for free or reduced price passes to horse racing in an attempt to increase attendance. This proposal will be heard in Senate Racing, Gaming and Wagering.

Budget Good. What's Next?

Business groups are happy with the budget passed late last night in the Senate and very early this morning in the Assembly, but now they're calling for action on a property tax cap and mandate relief.
Speaking on behalf of the upstate business community, as it represents more than 70,000 employers, Unshackle Upstate touted the very recent achievement of Gov. Andrew Cuomo and the legislature.
"Finally, we have a governor who is willing to lead by example and legislative leadership who share and support his vision for a stronger New York,” said Brian Sampson, executive director of Unshackle Upstate. “By capping education and Medicaid spending and establishing Regional Economic Development Councils, this budget sends a powerful message that New York is on the road to recovery.”
Sandy Parker, a co-founder of Unshackle Upstate and leader of the Rochester Business Alliance, characterized the budget as a solid first step toward getting the state's spending under control. She added, "Now with the budget behind us, we look forward to moving on to equally important issues, such as implementing a property tax cap.”
These sentiments were echoed by the Greater Binghamton Chamber of Commerce, the Buffalo Niagara Partnership, the North Country Chamber of Commerce and MACNY.
Sampson argued that it is important to build on the momentum of the budget's passage with a couple key proposals, mainly the passage in the Assembly of the property tax cap and serious mandate relief to accompany it. "It’s imperative that they take immediate action to enact a 2-percent property tax cap; provide real mandate relief for our local schools and governments; and reform the public-sector pension system," said Sampson.
The following are portions of the budget that Unshackle Upstate and its allies were particularly happy with:

No new taxes;
Reduction in overall state spending by 2 percent;
Education and Medicaid spending caps;
Creation of Regional Economic Development Councils;
Merger of state agencies;
Repeal of the industrial development authorities tax;
Two-year suspension of diesel retrofit requirement; and
Creation of the Recharge NY Power Program
Key business leaders from Rochester, Binghamton and Syracuse signaled their support the 2011-12 budget.

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.

Mandate Relief for Libraries

With New York's public libraries facing a potential 10 percent budget cut, they're endanger of violating maintenance of effort (MOE) statutes, which could cost them federal and state aid. In response to this looming dilemma, Senator Hugh Farley, R-Niskayuna, has introduced a bill (SB 4102) on Friday that would allow waivers for some of these MOE statutes so libraries won't lose state aid.
He proposes letting the state Education Commissioner grant waivers so that local libraries don't jeopardize 25 percent of their state funding by failing to meet certain standards.
Farley's bill memorandum argues that this loss of funding would have a "crippling effect" and would impact persons who are disabled, speak English as a second language, are incarcerated, are institutionalized or unemployed. The memo suggests that the waiver process has a successful past.
It's not clear what standards libraries would be exempted from, but that they would be determined on a case by case basis.

The Fun in Unfunded Mandates

In the wake of a bill introduced by Senate Majority Leader Dean Skelos, R-Rockville Centre, earlier today, a related bill has been introduced that seems to be its partner in crime.
Senate Bill 2707 has been introduced by Stephen Saland, and it would essentially require the state to pick up the tab for any mandates on local municipalities and school districts. (GOD I NEED BILL MEMOS! This stuff is indecipherable without them!)
The intent of the bill is to prevent "irresponsible state actions" that take away the control from local municipalities.
The bill would basically prevent any unfunded mandates that create an additional cost for a municipality or school district.
It is likely that this bill will be passed on Monday, as it seems to go hand in hand with SB 2706. There are currently no companion bills in the Assembly for either bills, and it is doubtful that Speaker Sheldon Silver would ever let these bills pass, let alone come up for a vote in his chamber.
It should make for great theater though...