Tue 13 Jan 2009 14:02

Eco-group calls for bunker tax


Letter to New York Governor calls for tax on sales of marine fuel.



An environmental-advocacy group in New York has this week called on Governor David Paterson to amend his budget proposal so that a tax can be extended on sales of marine fuel.

In a statement released by the Environmental Advocates of New York, the group says "The Governor’s Executive Budget for 2009-2010 fails to update the fees polluters are required to pay on regulated air contaminants, such as sulfur dioxide and nitrous oxides, or move the burden of paying these fees from New York taxpayers to polluters, as mandated by federal law."

The eco-group's latest comments follow the release of its report in November 2008 entitled "Saving Green: Addressing New York’s Fiscal Crisis & Protecting the Environment".

According to the report, Environmental Advocates claims that 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 report mentions that under current tax laws, sales of bunker fuel are tax exempt in the state of New York. As a consequence, it says the state of New York has lost, on average $34.5 million annually over the last five years as a result of the bunker fuel tax exemption, and more than $300 million since 1994.

In a letter submitted to the Governor yesterday, Environmental Advocates calls on Governor Paterson to "fix the outdated air pollution fees associated with the Title V Operating Permit Program and repeal tax exemptions on dirty bunker fuel".

"Outdated fees and caps associated with Title V mean that polluters and taxpayers will continue to share responsibility for supporting regulatory oversight of New York’s air pollution permitting program, counter to the requirements of the Clean Air Act," Environmental Advocates said.

The group is also asking the Governor to update the air pollution permit program by removing the 6,000 ton cap for which a facility can be billed and by raising the $45 per ton fee on pollution to $80 per ton.

Environmental Advocates says that by maintaining the existing 6,000 ton cap, the state is not billing polluters for almost 60,000 tons of air pollution.

"Such changes are long overdue — it’s been more than 10 years since New York’s Title V permit fees were updated and doing so could mean up to $12 million in new state revenue," the group said.

Commenting on the issue, Alison Jenkins, Fiscal Policy Program Director, Environmental Advocates of New York, said “Making polluters pay will generate new resources while reinforcing the state’s clean air goals. And discouraging pollution by taxing dirty bunker fuel will net New York millions in new, clean money that could help protect air and water quality statewide.”

Bunker fuel is said to be responsible for approximately 43 percent of port-area air pollution in New York. Annual sales are currently at around 3 million metric tonnes per year.

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.

A Maersk vessel, pictured from above. Rise in bunker costs hurts Maersk profit  

Shipper blames reroutings via Cape of Good Hope and fuel price increase.

Claus Bulch Klausen, CEO of Dan-Bunkering. Dan-Bunkering posts profit rise in 2023-24  

EBT climbs to $46.8m, whilst revenue dips from previous year's all-time high.

Chart showing percentage of fuel samples by ISO 8217 version, according to VPS. ISO 8217:2024 'a major step forward' | Steve Bee, VPS  

Revision of international marine fuel standard has addressed a number of the requirements associated with newer fuels, says Group Commercial Director.

Carsten Ladekjær, CEO of Glander International Bunkering. EBT down 45.8% for Glander International Bunkering  

CFO lauds 'resilience' as firm highlights decarbonization achievements over past year.

Anders Grønborg, CEO of KPI OceanConnect. KPI OceanConnect posts 59% drop in pre-tax profit  

Diminished earnings and revenue as sales volume rises by 1m tonnes.

Verde Marine Homepage Delta Energy's ARA team shifts to newly launched Verde Marine  

Physical supplier offering delivery of marine gasoil in the ARA region.


↑  Back to Top


 Related Links