Requires alternate generated power capacity for motor fuel dispensing facilities

Summary of provisions

Section 1 adds a new paragraph k to subdivision 3 of section 21 of the executive law granting the Disaster Preparedness Commission the power to designate retail motor fuel, diesel motor fuel, kerosene stations and motor fuel terminal facilities that shall be required to be capable of operating its fuel pumps, dispensing equipment, life safety systems and payment acceptance equipment using an alternate generated power source.

Section 2 adds a new section 187-s to the tax law to establish a credit against the corporation tax for the purchase and installation of an alternate generated power source. The credit shall be equal to fifty percent of the cost of purchase and installation of an alternate gener- ated power source for those entities that are required to install such equipment by the Disaster Preparedness Commission. For those entities that are not required to purchase and install an alternate generated power source but choose to do so anyway, the credit shall be twenty percent. The credit is available from January 1, 2014 through January 1, 2018. Any unused portion of the credit may be carried over for up to five years.

Section 3 adds a new subdivision 46 to section 210 of the tax law to allow a credit, as described in section 2 of the bill, against the Busi- ness Franchise Tax.

Section 4 adds a new subsection (u) to section 606 of the tax law to allow a credit, as described in section 2 of the bill, against the Personal Income Tax.

Section 5 adds a new clause (xxxv) to subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law related to the above cred- it.

Section 6 provides the effective date.

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 consum- ers 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 legis- lation 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

To be determined.

Effective date

This act shall take effect immediately.