Bill S1208A-2013

Requires alternate generated power capacity for motor fuel dispensing facilities

Requires that each motor fuel terminal facility and each wholesaler which sells motor fuel in the state shall be capable of operating its distribution loading racks using alternate generated power source for a minimum of seventy-two hours; establishes a tax credit for alternate generated storage.

Details

Actions

  • Apr 17, 2013: RECOMMIT, ENACTING CLAUSE STRICKEN
  • Feb 7, 2013: PRINT NUMBER 1208A
  • Feb 7, 2013: AMEND (T) AND RECOMMIT TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • Jan 9, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

Memo

BILL NUMBER:S1208A

TITLE OF BILL: An act to amend the executive law and the tax law, in relation to alternate generated power capacity; and providing for the repeal of certain provisions upon expiration thereof

PURPOSE: To require alternate generated power capacity for certain motor fuel dispensing facilities and to provide tax credits for the purchase and installation thereof.

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 generated 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 Business 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 credit.

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 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 California. 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. Requiring 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 1208--A 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the executive law and the tax law, in relation to alter- nate generated power capacity; and providing for the repeal of certain provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 21 of the executive law is amended by adding a new paragraph k to read as follows: K. DESIGNATE RETAIL MOTOR FUEL, DIESEL MOTOR FUEL, KEROSENE STATIONS AND MOTOR FUEL TERMINAL FACILITIES THROUGHOUT EACH DESIGNATED VULNERABLE COMMUNITY IN THE STATE 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. SUCH ALTERNATE GENERATED POWER SOURCE SHALL BE AVAILABLE NO LATER THAN TWEN- TY-FOUR HOURS AFTER A MAJOR DISASTER. EACH DESIGNATED STATION SHALL BE EQUIPPED WITH APPROPRIATE WIRING AND TRANSFER SWITCH WHICH SHALL BE INSTALLED BY A CERTIFIED ELECTRICAL CONTRACTOR. EACH DESIGNATED STATION SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH INSTALLATION ON SITE OR AT ITS CORPORATE HEADQUARTERS. EACH DESIGNATED STATION SHALL KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TESTING AND ENSURED OPERA- TIONAL CAPACITY OF THE EQUIPMENT. THE REQUIRED DOCUMENTATION SHALL BE MADE AVAILABLE, UPON REQUEST, TO THE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES AND THE DIRECTOR OF EMERGENCY MANAGEMENT AGENCY. THE CRITERIA TO BE USED BY THE COMMISSION IN DESIGNATING SUCH RETAIL STATIONS AND THE LOCATION THEREOF INCLUDE BUT ARE NOT LIMITED TO: (1) LOCATIONS NEAR MAJOR VEHICULAR TRANSPORTATION ROUTES OR DESIGNATED EVACUATION ROUTES TO FACILITATE THE EVACUATION OF PERSONS AWAY FROM THE
DESIGNATED DISASTER AREA OR TOWARDS THE SAFETY OF EMERGENCY TEMPORARY SHELTERS; (2) FACILITY LOCATIONS THAT, DUE TO THE TOPOGRAPHY OF THE AREA, DISTANCE TOWARDS OR AWAY FROM ANY BODY OF WATER, WETLAND OR PHYSICAL FEATURE, OR ANY OTHER CRITERIA ESTABLISHED BY THE COMMISSION WOULD REMAIN VIABLE LOCATIONS THAT COULD SAFELY AND EFFECTIVELY OPERATE BEFORE, DURING AND AFTER A DESIGNATED DECLARATION OF AN EMERGENCY; AND (3) LOCATIONS NEAR TRANSPORTATION HUBS AND OTHER SUITABLE AREAS WITHIN EACH REGION AND EACH COMMUNITY, THAT AFTER THE OCCURRENCE OF SUCH DISAS- TER, COULD BE VALUABLE TO ASSIST IN REGIONAL OR LOCAL RESCUE, RESPONSE, RECOVERY, MITIGATE ACTIVITIES, INCLUDING BUT NOT LIMITED TO, MAKING AVAILABLE MOTOR FUEL TO EMERGENCY VEHICLES, EMERGENCY RESPONDERS, LAW ENFORCEMENT OR TRUCKS AND BUSES USED TO TRANSPORT RESCUE, RESPONSE AND RECOVERY MATERIAL OR PERSONNEL, AND TO SUPPORT THE LOCAL FUEL NEEDS OF EACH COMMUNITY FOR HEAT, COOKING, PORTABLE HOME GENERATOR, LAW ENFORCE- MENT AND OTHER CRITICAL COMMUNITY NEEDS. S 2. The tax law is amended by adding a new section 187-s to read as follows: S 187-S. TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (A) (1) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO TWENTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (B) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (C) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED. S 3. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (A) (1) FOR EACH TAXA- BLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A
MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (2) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO TWENTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (B) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (C) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED. S 4. Section 606 of the tax law is amended by adding a new subsection (u) to read as follows: (U) TAX CREDIT FOR ALTERNATE GENERATED STORAGE. (1) (A) FOR EACH TAXA- BLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE AS REQUIRED BY PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (B) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN THERE SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO TWENTY PERCENT OF THE AMOUNT PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE PURCHASE AND INSTALLATION OF AN ALTERNATE GENERATED POWER SOURCE AT A MOTOR FUEL RETAIL OUTLET LOCATED IN THE STATE THAT IS NOT SUBJECT TO THE REQUIREMENTS UNDER PARAGRAPH K OF SUBDIVISION THREE OF SECTION TWENTY-ONE OF THE EXECUTIVE LAW. (2) IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH A CREDIT IS ALLOWED PURSUANT TO THIS SECTION IS THEREAFTER SOLD, RETURNED TO THE VENDOR, OR OTHERWISE REMOVED FROM SERVICE BY THE TAXPAYER WITHIN ONE YEAR FROM THE DATE THE ALTERNATE GENERATED POWER SOURCE WAS PLACED IN SERVICE, THE AMOUNT OF CREDIT ALLOWED BY THIS SECTION FOR THE PURCHASE AND INSTALLATION OF THAT ALTERNATE GENERATED POWER SOURCE SHALL BE RECAPTURED BY ADDING THAT CREDIT AMOUNT TO THE TAX OF THE TAXPAYER FOR THE TAXABLE YEAR IN WHICH THE ALTERNATE GENERATED POWER SOURCE IS SOLD OR REMOVED. (3) IN THE CASE WHERE THE TAX CREDIT IS NOT EXHAUSTED IN THE TAXABLE YEAR ANY EXCESS MAY BE CARRIED OVER IN THE FOLLOWING YEAR, AND FIVE SUCCEEDING YEARS IF NECESSARY, AND MAY BE DEDUCTED FROM THE TAX IMPOSED BY THIS ARTICLE UNTIL SUCH CREDIT IS EXHAUSTED.
S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to read as follows: (XXXV) ALTERNATE GENERATED STORAGE AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (U) SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 6. This act shall take effect immediately; provided the provisions of sections two, three, four and five of this act shall expire and be deemed repealed January 1, 2018.

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