Tue 13 Jan 2009, 14:02 GMT

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In a letter submitted to the Governor yesterday, Environmental Advocates calls on Governor Paterson to "fix the outdated air pollution fees associated with the Title V Operating Permit Program and repeal tax exemptions on dirty bunker fuel".

"Outdated fees and caps associated with Title V mean that polluters and taxpayers will continue to share responsibility for supporting regulatory oversight of New York’s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.


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