Thu 27 Nov 2008 08:02

Eco report calls for New York bunker tax


Report also recommends East Coast switch to cleaner-burning fuels.



An environmental-advocacy group in New York has called for a tax to be extended on sales of marine fuel as part of its campaign to encourage the state to reduce spending, protect the environment and reduce pollution.

According to the report entitled "Saving Green: Addressing New York’s Fiscal Crisis & Protecting the Environment", which has been released by Environmental Advocates of New York, if the state enacts the group’s recommendations, overall savings would total $936.5 million in the next five years, as well as cutting pollution and benefiting the environment.

The eco-group points out in the report that under current tax laws, sales of bunker fuel are tax exempt in the state of New York.

As a consequence, it says "Over the last five years, New York State has lost, on average, $34.5 million annually as a result of the bunker fuel tax exemption; the state has lost more than $300 million since 1994.

"In addition, the amount of bunker fuel being sold in New York has increased over the past five years. New York is projected to lose $38.9 million in tax revenue in 2008/09."

With regards to pollution, the report claims maritime traffic at the largest port on the East Coast, the Port of New York and New Jersey produces almost 20 tons of nitrogen oxide (NOx) and about 1.1 tons of particulate matter per day.

The report says this "violates federal standards for ozone and particulate matter."

"In comparison, 500,000 cars produce 24 tons of NOx and .55 tons of particulate matter emissions daily."

The report also compares the state of New York with California, where ships are required to switch to cleaner fuels within a specific distance from shore in order to decrease pollution.

"New York is encouraging use of one of the world’s dirtiest fuels when cleaner alternatives are available. The least New York can do is to start charging tax on such fuels. Making dirty fuels more expensive may reduce the amount sold and the amount of toxic pollution ships emit and clean the air around New York City and Long Island, an area with the worst air quality in the state," the report says.

The environmental-advocacy group recommends that the following actions should be taken:

1. Repeal the tax exemption for bunker fuel so the state can reap an additional $35 to $40 million per year in taxes and improve air quality in New York.

2. Enforce regulations to force ships to use cleaner fuels as they come closer to shore.

Commenting on the report, Robert Moore, executive director of Environmental Advocates of New York, said “Environmental Advocates of New York is calling on Governor Paterson and the State Legislature to start saving green, both in terms of taxpayer dollars and our natural resources. New York State is confronting the major financial crisis.

Instead of taking an axe to agency budgets and cutting staff to the bone, our leaders need to take responsible action to protect taxpayers and the health of our drinking water, our air and land,” Moore said.

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