by Traci Carneal
ALBANY, N.Y. — The state of New York has published a website identifying gas stations in the downstate region that must comply with a new generator mandate that takes effect in less than a year. The mandate, which is included in the 2013-2014 state budget, is one of several actions the state is taking to thwart a future fuel crisis similar to the one that paralyzed several downstate counties – and New York City – following Hurricane Sandy.
The measure affects fuel locations in Nassau, Suffolk, Westchester and Rockland counties, and New York City, that are located within a half-mile of an exit on a controlled access highway or a designated evacuation route. These sites must be prewired for backup power by April 1, 2014. They also must have a written plan in place for deploying a generator within 24 to 48 hours of an emergency declaration or loss of power.
The policy also extends to stores that are not located within the half-mile limit – 30% of retail outlets that are part of a chain (defined as operating 10 or more stations in a single downstate region) also must meet the generator requirements. An operator of 15 stations in Westchester County, for example, who owns five stations within the half-mile limit would have to wire an additional three locations, for a total of eight. Chains have until Aug. 1, 2015, or 12 months after becoming part of the chain, to comply. Gas stations selling less than 75,000 gallons of fuel per month are exempt.
While unfunded mandates tend to rankle many pro-business organizations, this mandate, unlike the original version, has won the support of a key constituent, the New York Association of Convenience Stores (NYACS).
The big win for NYACS was the financial and logistical support included in the mandate.
“The new legislation is much more manageable than the proposal introduced in December,” NYACS president Jim Calvin told CSP. “In addition to providing $10,000 per location for the transfer switch, the state also will help stations locate and deploy a generator in the event of a declared emergency.” Gas stations that choose to buy their own generator, rather than rent from the state, are eligible to receive $3,000 toward the purchase price.
Under the original bill, retailers would have absorbed the costs of renting or purchasing their own generator1 systems, in addition to the $10,000 transfer expense, according to Calvin. Retailers that do not own a generator will be able to rent from a “generator pool” and pay only for the days the unit is onsite.
While the new law is an improvement, some experts advise gas station operators to think carefully before electing to install the pre-wiring and then rely on the “generator pool” when a crisis occurs.
Brian Mauriello, vice president of sales & marketing for Kinsley Power Systems, a major Kohler distributor in the Northern states, advises operators to consider what systems they want to back up: the whole store, which could include lighting, POS systems, refrigeration, walk-in freezers and maybe even a car wash; or just the basics, to comply with the mandate.
“You need to figure out what is most practical for your store,” Mauriello says. “Powering up your whole site would require a significant number of amps and a large generator, but if that is the option you want to have, then it may be wiser for you to lease or buy a unit rather than rely on renting.”
The financial considerations are hefty, as hardware and installation for a new generator can range from $20,000 to $50,000 per store depending on the level of backup desired. At the same time, investing in a generator with the gusto to back up an entire store would probably see an ROI after just one storm or outage, says Mauriello. As one operator put it, “If I’m out two weeks, I’m not profitable for nine months.”
In terms of renting, Mauriello cautions that the “generator pool” being formed by the state of New York may not provide an adequate number of generators to meet demand in case of a widespread outage, nor is there a guarantee that the generator stations receive will be powerful enough to provide ample backup for larger stores and operations. In fact, if the state experiences a broad outage, “there aren’t enough rental generators on this earth” to accommodate all the stations that would need units. One county going dark could, in extreme circumstances, wipe out the entire New England area supply, he says.
“We’ve been working with NYSERTA’s team of engineers to encourage them to offer more than a fleet of small generators that aren’t capable of running major refrigeration systems, car washes, a foodservice franchise or counter and ovens, for example,” Mauriello says, referring to the New York State Energy and Research Development Authority.
“Sometimes c-stores become the sole source of food in an emergency, especially in a rural area without nearby grocery stores,” he says. “Protecting the perishable inventory is crucial in these situations.”
As for gas stations located in other areas of the state, further study is underway to access the level of need for backup power requirements. Stay tuned for further guidance on how to protect your store in future issues of CSP Weather Preparedness.
At a Glance
Gas stations located within a half-mile of limited-access highway exit roads or evacuation routes in downstate New York areas will be required to:
· Pre-wire the facility with appropriate transfer switch for using backup power;
· Deploy a backup generator within 24 to 48 hours after “an energy or fuel supply emergency” is declared, or after losing power if the power loss occurs after the declaration is made; and
· Prepare a written plan for deploying backup power that includes key documentation as stated in the provision.
1 This amount can vary much more widely depending on whether they purchase or just rent. Purchasing can be as high as $50,000 for unit and install.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.