Requires motor fuel terminal facilities and wholesalers in the state to be capable of operating its distribution loading racks using an alternate generated power source for a minimum of seventy-two hours.

---

S3842-2013 Actions

• Apr 17, 2013: RECOMMIT, ENACTING CLAUSE STRICKEN
• Mar 12, 2013: REPORTED AND COMMITTED TO FINANCE
• Feb 21, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

S3842-2013 Meetings

Veterans, Homeland Security and Military Affairs: Mar 12, 2013

S3842-2013 Votes

S3842-2013 Memo

BILL NUMBER:S3842

TITLE OF BILL:  An act to amend the executive law and the tax law, in
relation to requiring motor fuel terminal facilities and wholesalers
in the state to be capable of operating its distribution loading racks
using an alternate generated power source for a minimum of seventy-two
hours; and providing for the repeal of certain provisions upon
expiration thereof

PURPOSE:

To require certain motor fuel terminal facilities and wholesalers in
the state to be capable of operating its distribution loading racks
using an alternate generated power source; to require that certain
motor fuel retail outlets be prewired with the wiring necessary to
operate an alternate generated power source; and to provide tax
credits therefor.

SUMMARY OF PROVISIONS:

Section 1 adds a new paragraph k to section 21 of the executive law to
provide the Disaster Preparedness Commission with the authority to
require that certain motor fuel terminal facilities and wholesalers be
capable of operating its distribution loading racks using an alternate
generated power source for a minimum of 72-hours. Such alternate
generated power source shall be available for operation within
36-hours of a major disaster, pending a post disaster examination of
the equipment-and any necessary repairs.

This section also provides the Disaster Preparedness Commission with
the authority to require that certain motor fuel retail outlets be
prewired with appropriate wiring, including a transfer switch,
necessary for the operation of an alternate generated power source
that is capable of operating all fuel pumps, dispensing equipment,
life safety systems and payment acceptance systems for a minimum of
72-hours, and which shall be required to have access to an alternate
generated power source. Such designated outlets shall be: located
within one-half mile of an interstate highway or state or federally
designated evacuation route; in locations that due to their topography
or distance towards or away from a body of water and under criteria
established by the Commission, would remain viable and that could
safely operate before, during and after a declaration of an emergency;
in locations near transportation hubs and other suitable areas that
could be valuable to assist in regional or local rescue and response
activities; in other locations that are determined by the Commission
to be vital to post disaster rescue and recovery operations.

Section 2 adds a new section 187-s to the tax law to provide a credit
against the corporation tax for up to fifty percent of the cost to
purchase and install an alternate generated power source by a motor
fuel terminal facility, wholesaler or. motor fuel retail outlet,
capped at $15,000. The credit would also be available for the costs of
materials and labor associated with the installation of appropriate
wiring, including a transfer switch, necessary for the operation of an
alternate generated power source by a motor fuel retail outlet, capped
at $5,000. The credit will be available from January 1, 2014 until
January 1, 2018. In order to qualify for the credit, the installation


of appropriate wiring and transfer switches shall be performed by a
certified electrical contractor and certified as operational by the
local building inspector. Expenditures for interest or other finance
charges, as-well as the amount of any federal, state or local grants
received by the taxpayer are excluded from the amount eligible for the
credit. The amount of any credit will be recaptured if an alternate
generated power source is returned or removed from service within one
year. Lastly, the amount of any unused credit is not refundable, but
can be carried over for up to five additional years.

Section 3 adds a new subdivision 46 to section 210 of the tax law to
provide a credit, as described above, against the business franchise
tax.

Section 4 adds a new subsection (u) to section 606 of the tax law to
provide a credit, as described above, 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 to make conforming
changes regarding the above tax 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 facilities along the motor fuel
supply chain 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 terminals and wholesalers to install an alternate generated
power source, and that certain service stations to be prewired to be
capable of operating an alternate generated power source. This
requirement allows for these facilities to remain operable after a
major disaster such as Hurricane Sandy. Requiring gas stations to be
prewired and have an alternate power source available for use makes
sure that residents have access to gasoline, enabling them to be able
to leave the impacted area prior to or after the storm hits, as well
as to be able to have fuel necessary to power their own home
generators. Including a tax credit will provide financial relief to
those facilities that are required to install a generator or be
prewired, as well as provide a financial incentive to other facilities
to be prewired or purchase a generator.

This bill will ensure that facilities along the motor fuel supply
chain 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; similar to S.1208-A.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately; provided that the provisions
of section two, three, four and five of this act shall expire and be
deemed repealed January 1, 2018.

S3842-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    3842

                         2013-2014 Regular Sessions

                              I N  SENATE

                              February 21, 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

  AN ACT to amend the executive law  and  the  tax  law,  in  relation  to
    requiring  motor fuel terminal facilities and wholesalers in the state
    to be capable of operating its distribution  loading  racks  using  an
    alternate  generated  power source for a minimum of seventy-two hours;
    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. Subparagraph 3 of paragraph i and paragraph j  of  subdivi-
  sion  3  of  section 21 of the executive law, as amended by section 2 of
  part B of chapter 56 of the laws of 2010, are amended and  a  new  para-
  graph k is added to read as follows:

    (3)  the status of the state and local plans for disaster preparedness
  and response, including the name of any locality  which  has  failed  or
  refused  to develop and implement its own disaster preparedness plan and
  program; and the extent to which all forms of local  emergency  response
  assets have been included, and accounted for in planning and preparation
  for disaster preparedness and response; [and]
    j.  develop  public  service  announcements to be distributed to tele-
  vision and radio stations and other media throughout the state informing
  the public how to prepare and respond to disasters. Such public  service
  announcements  shall  be distributed in English and such other languages
  as such commission deems appropriate[.];
    K. (1) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, CHAPTER OR  ANY
  PROVISIONS  TO  THE  CONTRARY CONTAINED IN ANY GENERAL, SPECIAL OR LOCAL
  LAWS, DESIGNATE MOTOR FUEL TERMINAL FACILITIES AND  WHOLESALERS  IN  THE
  STATE THAT SHALL BE REQUIRED TO BE CAPABLE OF OPERATING ITS DISTRIBUTION
  LOADING RACKS USING AN ALTERNATE GENERATED POWER SOURCE FOR A MINIMUM OF

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD09036-02-3

 S. 3842                             2

  SEVENTY-TWO  HOURS. PENDING A POST DISASTER EXAMINATION OF THE EQUIPMENT
  BY THE OPERATOR TO DETERMINE EXTENUATING DAMAGE  THAT  WOULD  RENDER  IT
  UNSAFE  TO  OPERATE  AND  ANY NECESSARY REPAIRS, THE FACILITY SHALL HAVE
  SUCH  ALTERNATE  GENERATED POWER SOURCE AVAILABLE FOR OPERATION NO LATER
  THAN THIRTY-SIX HOURS AFTER A MAJOR  DISASTER.  "MAJOR  DISASTER"  SHALL
  MEAN OCCURRENCE OR IMMINENT THREAT OF WIDESPREAD OR SEVERE DAMAGE, INJU-
  RY  OR  LOSS  OF LIFE OR PROPERTY RESULTING FROM ANY NATURAL OR MAN-MADE
  CAUSES, INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD,  EARTHQUAKE,  HURRI-
  CANE,  TORNADO,  HIGH  WATER,  LANDSLIDE,  MUDSLIDE,  WIND,  STORM, WAVE
  ACTION, VOLCANIC ACTIVITY, EPIDEMIC, AIR CONTAMINATION, TERRORISM, CYBER
  EVENT, BLIGHT, DROUGHT, INFESTATION, EXPLOSION,  RADIOLOGICAL  ACCIDENT,
  NUCLEAR,  CHEMICAL, BIOLOGICAL OR BACTERIOLOGICAL RELEASE, WATER CONTAM-
  INATION, BRIDGE FAILURE OR BRIDGE COLLAPSE.  INSTALLATION OF APPROPRIATE
  WIRING, INCLUDING A TRANSFER SWITCH, SHALL BE PERFORMED BY  A  CERTIFIED
  ELECTRICAL CONTRACTOR AND CERTIFIED AS OPERATIONAL BY THE LOCAL BUILDING
  INSPECTOR.  EACH BUSINESS SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH
  INSTALLATION ON SITE OR AT ITS CORPORATE HEADQUARTERS. IN ADDITION, EACH
  BUSINESS SHALL KEEP A WRITTEN STATEMENT ATTESTING TO THE PERIODIC  TEST-
  ING  AND  ENSURED  OPERATIONAL  CAPACITY  OF THE EQUIPMENT. THE REQUIRED
  DOCUMENTS SHALL BE MADE AVAILABLE, UPON REQUEST, TO  THE  COMMISSION  OR
  LOCAL EMERGENCY MANAGEMENT AGENCY.
    (2)  NOTWITHSTANDING  THE  PROVISIONS  OF THIS SECTION, CHAPTER OR ANY
  PROVISIONS TO THE CONTRARY CONTAINED IN ANY GENERAL,  SPECIAL  OR  LOCAL
  LAWS,  DESIGNATE  MOTOR  FUEL  RETAIL OUTLETS THROUGHOUT EACH DESIGNATED
  VULNERABLE COMMUNITY IN THE STATE THAT  SHALL  BE  REQUIRED  TO  INSTALL
  APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR THE OPER-
  ATION  OF  AN  ALTERNATE GENERATED POWER SOURCE CAPABLE OF OPERATING ALL
  FUEL PUMPS,  DISPENSING  EQUIPMENT,  LIFE  SAFETY  SYSTEMS  AND  PAYMENT
  ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS AND WHICH SHALL BE
  REQUIRED  TO HAVE ACCESS TO SUCH ALTERNATE GENERATED POWER SOURCE. PEND-
  ING A POST DISASTER EXAMINATION OF THE  EQUIPMENT  BY  THE  OPERATOR  TO
  DETERMINE  EXTENUATING DAMAGE THAT WOULD RENDER IT UNSAFE TO OPERATE AND
  ANY NECESSARY REPAIRS, THE FACILITY SHALL HAVE SUCH ALTERNATE  GENERATED
  POWER  SOURCE  AVAILABLE  FOR  OPERATION  NO LATER THAN THIRTY-SIX HOURS
  AFTER A MAJOR DISASTER. "MAJOR DISASTER" SHALL MEAN OCCURRENCE OR  IMMI-
  NENT  THREAT  OF  WIDESPREAD OR SEVERE DAMAGE, INJURY OR LOSS OF LIFE OR
  PROPERTY RESULTING FROM ANY NATURAL OR MAN-MADE CAUSES,  INCLUDING,  BUT
  NOT LIMITED TO, FIRE, FLOOD, EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER,
  LANDSLIDE,  MUDSLIDE,  WIND,  STORM,  WAVE  ACTION,  VOLCANIC  ACTIVITY,
  EPIDEMIC, AIR CONTAMINATION, TERRORISM, CYBER  EVENT,  BLIGHT,  DROUGHT,
  INFESTATION,   EXPLOSION,   RADIOLOGICAL  ACCIDENT,  NUCLEAR,  CHEMICAL,
  BIOLOGICAL OR BACTERIOLOGICAL RELEASE, WATER CONTAMINATION, BRIDGE FAIL-
  URE OR BRIDGE COLLAPSE.  INSTALLATION OF APPROPRIATE WIRING, INCLUDING A
  TRANSFER SWITCH, SHALL BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR
  AND CERTIFIED AS OPERATIONAL BY THE LOCAL BUILDING INSPECTOR. EACH BUSI-
  NESS SHALL KEEP A COPY OF THE DOCUMENTATION OF SUCH INSTALLATION ON SITE
  OR AT ITS CORPORATE HEADQUARTERS. IN ADDITION, EACH BUSINESS SHALL  KEEP
  A WRITTEN STATEMENT ATTESTING TO THE PERIODIC TESTING AND ENSURED OPERA-
  TIONAL  CAPACITY  OF THE EQUIPMENT. THE REQUIRED DOCUMENTS SHALL BE MADE
  AVAILABLE, UPON REQUEST, TO THE COMMISSION OR LOCAL EMERGENCY MANAGEMENT
  AGENCY. SUCH DESIGNATED OUTLETS: (I) SHALL BE  LOCATED  WITHIN  ONE-HALF
  MILE PROXIMATE TO AN INTERSTATE HIGHWAY OR STATE OR FEDERALLY DESIGNATED
  EVACUATION ROUTE; OR
    (II)  SHALL  BE  IN 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

 S. 3842                             3

  REMAIN VIABLE  LOCATIONS  THAT  COULD  SAFELY  AND  EFFECTIVELY  OPERATE
  BEFORE, DURING AND AFTER A DECLARATION OF AN EMERGENCY; OR
    (III)  SHALL  BE IN LOCATIONS NEAR TRANSPORTATION HUBS AND OTHER SUIT-
  ABLE AREAS WITHIN EACH REGION AND EACH COMMUNITY THAT, AFTER THE  OCCUR-
  RENCE OF SUCH DISASTER, COULD BE VALUABLE TO ASSIST IN REGIONAL OR LOCAL
  RESCUE,  RESPONSE,  RECOVERY OR MITIGATION 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 ENFORCEMENT AND OTHER CRITICAL COMMUNITY NEEDS; OR
    (IV)  SHALL  BE  IN  OTHER  SUCH  LOCATIONS THAT ARE DETERMINED BY THE
  COMMISSION TO BE VITAL TO POST  DISASTER  RESPONSE  AND  RECOVERY  OPER-
  ATIONS;
    (V)  SHALL  NOT  INCLUDE AN AUTOMOBILE DEALER, A PERSON WHO OPERATES A
  FLEET OF MOTOR VEHICLES, A PERSON WHO SELLS MOTOR FUEL EXCLUSIVELY TO  A
  FLEET OF MOTOR VEHICLES OR A MOTOR FUEL RETAIL OUTLET THAT HAS A WRITTEN
  AGREEMENT  WITH A PUBLIC HOSPITAL, IN A FORM APPROVED BY THE DIVISION OF
  EMERGENCY MANAGEMENT, WHEREIN THE PUBLIC HOSPITAL AGREES TO PROVIDE  THE
  MOTOR  FUEL  RETAIL  OUTLET  WITH AN ALTERNATE MEANS OF POWER GENERATION
  ONSITE SO THAT THE OUTLET'S FUEL PUMPS MAY BE OPERATED IN THE EVENT OF A
  POWER OUTAGE.
    S 2. The tax law is amended by adding a new section 187-s to  read  as
  follows:

    S 187-S. ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES CRED-
  IT. (1) ALLOWANCE OF CREDIT. FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER
  JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU-
  SAND  EIGHTEEN  THERE  SHALL  BE  ALLOWED AS A CREDIT, TO BE COMPUTED AS
  PROVIDED IN SUBDIVISION THREE OF THIS SECTION, AGAINST THE  TAX  IMPOSED
  BY THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT
  EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL
  RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER
  SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY.
    (2)  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING DEFI-
  NITIONS APPLY:

    (A) "MOTOR FUEL TERMINAL FACILITY" AS  DEFINED  IN  PARAGRAPH  (K)  OF
  SUBDIVISION  ONE  OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL
  BUSINESS LAW;
    (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L)  OF  SUBDIVISION  ONE  OF
  SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW;
    (C) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI-
  SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS
  LAW;
    (D)  "QUALIFIED  ALTERNATE  GENERATED  POWER SOURCE EQUIPMENT EXPENDI-
  TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY,
  WHOLESALER OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER  JANUARY
  FIRST,  TWO  THOUSAND  FOURTEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND
  EIGHTEEN ASSOCIATED WITH THE PURCHASE AND INSTALLATION OF  AN  ALTERNATE
  GENERATED  POWER  SOURCE  THAT  IS CAPABLE OF OPERATING ALL DISTRIBUTION
  LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND
  PAYMENT ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF  SEVENTY-TWO
  HOURS; OR
    (II)  COSTS  INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR
  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO
  THOUSAND EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE  INSTALLA-
  TION  OF  APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR

 S. 3842                             4

  THE OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE  OF
  OPERATING  ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND
  PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS;
    (III)  INSTALLATION  OF APPROPRIATE WIRING AND TRANSFER SWITCHES SHALL
  BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER-
  ATIONAL BY THE LOCAL BUILDING INSPECTOR;
    (IV) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST  OR  OTHER
  FINANCE CHARGES;
    (V)  THE  AMOUNT  OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE
  TAXPAYER, WHICH IS USED FOR QUALIFIED ALTERNATE GENERATED  POWER  SOURCE
  EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL-
  IFIED EXPENDITURES.
    (3)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL FIFTY PERCENT
  OF QUALIFIED ALTERNATE GENERATED POWER  SOURCE  EQUIPMENT  EXPENDITURES.
  SUCH  CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR QUALI-
  FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED
  IN SUBPARAGRAPH (I) OF PARAGRAPH (D) OF SUBDIVISION TWO OF THIS SECTION,
  OR FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER  SOURCE
  EQUIPMENT EXPENDITURES AS PROVIDED IN SUBPARAGRAPH (II) OF PARAGRAPH (D)
  OF SUBDIVISION TWO OF THIS SECTION.
    (4) CREDIT RECAPTURE. 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.
    (5) CARRYOVER. 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. ALTERNATE GENERATED POWER SOURCE  EQUIPMENT  EXPENDITURES  CREDIT.
  (1)  ALLOWANCE  OF  CREDIT.  FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER
  JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU-
  SAND EIGHTEEN THERE SHALL BE ALLOWED AS A  CREDIT,  TO  BE  COMPUTED  AS
  PROVIDED IN PARAGRAPH THREE OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED
  BY THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT
  EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL
  RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER
  SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY.
    (2)  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING DEFI-
  NITIONS APPLY:

    (A) "MOTOR FUEL TERMINAL FACILITY" AS  DEFINED  IN  PARAGRAPH  (K)  OF
  SUBDIVISION  ONE  OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL
  BUSINESS LAW;
    (B) "WHOLESALER" AS DEFINED IN PARAGRAPH (L)  OF  SUBDIVISION  ONE  OF
  SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW;
    (C) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI-
  SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS
  LAW;
    (D)  "QUALIFIED  ALTERNATE  GENERATED  POWER SOURCE EQUIPMENT EXPENDI-
  TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY,

 S. 3842                             5

  WHOLESALER OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER  JANUARY
  FIRST,  TWO  THOUSAND  FOURTEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND
  EIGHTEEN ASSOCIATED WITH THE PURCHASE AND INSTALLATION OF  AN  ALTERNATE
  GENERATED  POWER  SOURCE  THAT  IS CAPABLE OF OPERATING ALL DISTRIBUTION
  LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND
  PAYMENT ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF  SEVENTY-TWO
  HOURS; OR
    (II)  COSTS  INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR
  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO
  THOUSAND EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE  INSTALLA-
  TION  OF  APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH, NECESSARY FOR
  THE OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE  OF
  OPERATING  ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND
  PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS;
    (III) INSTALLATION OF APPROPRIATE WIRING AND TRANSFER  SWITCHES  SHALL
  BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER-
  ATIONAL BY THE LOCAL BUILDING INSPECTOR;
    (IV)  SUCH  QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST OR OTHER
  FINANCE CHARGES;
    (V) THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT  RECEIVED  BY  THE
  TAXPAYER,  WHICH  IS USED FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE
  EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL-
  IFIED EXPENDITURES.
    (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL  FIFTY  PERCENT
  OF  QUALIFIED  ALTERNATE  GENERATED POWER SOURCE EQUIPMENT EXPENDITURES.
  SUCH CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR  QUALI-
  FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED
  IN  CLAUSE (I) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBDIVISION,
  OR FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER  SOURCE
  EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (II) OF SUBPARAGRAPH (D) OF
  PARAGRAPH TWO OF THIS SUBDIVISION.
    (4) CREDIT RECAPTURE. IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH
  A  CREDIT  IS  ALLOWED  PURSUANT TO THIS SUBDIVISION 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 SUBDIVISION 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.
    (5)  CARRYOVER.  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) ALTERNATE GENERATED POWER SOURCE  EQUIPMENT  EXPENDITURES  CREDIT.
  (1)  ALLOWANCE  OF CREDIT.   FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER
  JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOU-
  SAND EIGHTEEN THERE SHALL BE ALLOWED AS A  CREDIT,  TO  BE  COMPUTED  AS
  PROVIDED  IN PARAGRAPH THREE OF THIS SECTION, AGAINST THE TAX IMPOSED BY
  THIS ARTICLE FOR QUALIFIED ALTERNATE GENERATED  POWER  SOURCE  EQUIPMENT
  EXPENDITURES AT A MOTOR FUEL TERMINAL FACILITY, WHOLESALER OR MOTOR FUEL
  RETAIL OUTLET LOCATED IN THE STATE; PROVIDED, HOWEVER, THAT THE TAXPAYER
  SHALL NOT CLAIM MORE THAN ONE CREDIT FOR ANY ONE FACILITY.

 S. 3842                             6

    (2)  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING DEFI-
  NITIONS APPLY:

    (A)  "MOTOR  FUEL  TERMINAL  FACILITY"  AS DEFINED IN PARAGRAPH (K) OF
  SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF  THE  GENERAL
  BUSINESS LAW;
    (B)  "WHOLESALER"  AS  DEFINED  IN PARAGRAPH (L) OF SUBDIVISION ONE OF
  SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS LAW;
    (C) "MOTOR FUEL RETAIL OUTLET" AS DEFINED IN PARAGRAPH (H) OF SUBDIVI-
  SION ONE OF SECTION THREE HUNDRED NINETY-NINE-EE OF THE GENERAL BUSINESS
  LAW;
    (D) "QUALIFIED ALTERNATE GENERATED  POWER  SOURCE  EQUIPMENT  EXPENDI-
  TURES" SHALL MEAN: (I) COSTS INCURRED BY A MOTOR FUEL TERMINAL FACILITY,
  WHOLESALER  OR MOTOR FUEL RETAIL OUTLET IN THE STATE ON OR AFTER JANUARY
  FIRST, TWO THOUSAND FOURTEEN AND  BEFORE  JANUARY  FIRST,  TWO  THOUSAND
  EIGHTEEN  ASSOCIATED  WITH THE PURCHASE AND INSTALLATION OF AN ALTERNATE
  GENERATED POWER SOURCE THAT IS CAPABLE  OF  OPERATING  ALL  DISTRIBUTION
  LOADING RACKS, FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS AND
  PAYMENT  ACCEPTANCE SYSTEMS, AS APPLICABLE, FOR A MINIMUM OF SEVENTY-TWO
  HOURS;
    (II) COSTS INCURRED BY A MOTOR FUEL RETAIL OUTLET IN THE STATE  ON  OR
  AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO
  THOUSAND  EIGHTEEN FOR MATERIALS AND LABOR ASSOCIATED WITH THE INSTALLA-
  TION OF APPROPRIATE WIRING, INCLUDING A TRANSFER SWITCH,  NECESSARY  FOR
  THE  OPERATION OF AN ALTERNATE GENERATED POWER SOURCE THAT IS CAPABLE OF
  OPERATING ALL FUEL PUMPS, DISPENSING EQUIPMENT, LIFE SAFETY SYSTEMS  AND
  PAYMENT ACCEPTANCE SYSTEMS FOR A MINIMUM OF SEVENTY-TWO HOURS;
    (III)  INSTALLATION  OF APPROPRIATE WIRING AND TRANSFER SWITCHES SHALL
  BE PERFORMED BY A CERTIFIED ELECTRICAL CONTRACTOR AND CERTIFIED AS OPER-
  ATIONAL BY THE LOCAL BUILDING INSPECTOR;
    (IV) SUCH QUALIFIED EXPENDITURES SHALL NOT INCLUDE INTEREST  OR  OTHER
  FINANCE CHARGES;
    (V)  THE  AMOUNT  OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE
  TAXPAYER, WHICH IS USED FOR QUALIFIED ALTERNATE GENERATED  POWER  SOURCE
  EQUIPMENT EXPENDITURES SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH QUAL-
  IFIED EXPENDITURES.
    (3)  AMOUNT  OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL FIFTY PERCENT
  OF QUALIFIED ALTERNATE GENERATED POWER  SOURCE  EQUIPMENT  EXPENDITURES.
  SUCH  CREDIT AMOUNT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS FOR QUALI-
  FIED ALTERNATE GENERATED POWER SOURCE EQUIPMENT EXPENDITURES AS PROVIDED
  IN CLAUSE (I) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF  THIS  SUBSECTION,
  OR  FIVE THOUSAND DOLLARS FOR QUALIFIED ALTERNATE GENERATED POWER SOURCE
  EQUIPMENT EXPENDITURES AS PROVIDED IN CLAUSE (II) OF SUBPARAGRAPH (D) OF
  PARAGRAPH TWO OF THIS SUBSECTION.
    (4) CREDIT RECAPTURE. IF AN ALTERNATE GENERATED POWER SOURCE FOR WHICH
  A CREDIT IS ALLOWED PURSUANT TO  THIS  SUBSECTION  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  SUBSECTION  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.
    (5) CARRYOVER. 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. 3842                             7

    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 POWER     AMOUNT OF CREDIT UNDER
  SOURCE EQUIPMENT EXPENDITURES        SUBDIVISION FORTY-SIX OF
  CREDIT UNDER SUBSECTION (U)          SECTION TWO HUNDRED TEN
    S  6.  This  act  shall  take  effect  immediately;  provided that the
  provisions of sections two, three, four  and  five  of  this  act  shall
  expire and be deemed repealed January 1, 2018.