Requires alternate generated power capacity for motor fuel dispensing facilities

Summary of provisions

Section 1. This section required fuel terminals, wholesalers and certain motor fuel retailers to purchase and install by September 1, 2014 an alternate generated power source which will enable them to operate their loading racks, fuel pumps, dispensing equipment, life safety systems, and payment acceptance equipment within 24 hours of a major disaster that causes the facility to lose electrical power. The bill requires all motor fuel terminal facilities and wholesalers to purchase and install an alternate generated power source. The bill also requires all newly constructed or substantially renovated motor fuel retail outlet to install this power source as well. Certain motor fuel retail outlets within one half mile of an interstate or a federal or state evacuation route will also be required to purchase and install an alternate gener- ated power source.

These facilities will be required to have an electrical contractor install a transfer switch as well as maintain documentation attesting to the periodic testing and operational capacity of the system.

Section 2. Tax Credit: This section will provide a tax credit for the purchase and installation of an alternate generated power source.

Facilities that are required to purchase and install an alternate power source under section one of the bill will be allowed a tax credit of up to 50% of the cost of installation and purchase. If a facility is not required to purchase and install the generator than the tax credit will be 50% of the cost to purchase and install the power source but cannot exceed $2,500.

If an alternate generated power source for which the facility received a tax credit for is returned, sold, or removed from service within one year from the date that the power source was installed, then the amount of the tax credit will be re-captured.

Justification

Hurricane Sandy left many New York counties devastated and without power for weeks. Due to this, many gas stations were left without power and were unable to meet the demands of thousands who were in need of gas for their vehicles and home generators. When fuel became available, many gas stations were still unable to provide it to consumers because their facilities were still without power. Consumers were forced to wait for hours in mile long lines in order to get gas from the few stations that were able to get their power restored. This legislation will ensure that this does not occur again.

This legislation mirrors Florida law and proposed legislation in Cali- fornia. Florida and Louisiana are the only states thus far that require certain service stations and terminals and wholesalers to install an alternate power source. This requirement allows for these stations to remain operable after a major disaster such as Hurricane Sandy. Requir- ing gas stations to have this alternate power source makes sure that residents have access to gasoline that will enable them to be able to leave the impacted area prior to or after the storm hits as well as to be able to have motor fuel necessary to power their own home generators. Including a tax credit, such as the one proposed in California, will provide financial relief to those facilities that are required to install a generator as well as provide a financial incentive to other facilities to purchase a generator even though they may not be required under this legislation.

This bill will ensure that gas stations have the necessary power to continue to operate when there are large power outages due to a major disaster. This will make sure the New York residents will continue to have access to vital fuel to run their vehicles and own generators which become crucial during the colder months.

Legislative history

New Bill.

Fiscal implications

Needs to be determined.

Effective date

Effective immediately.