A414

An Act concerning the operations of certain motor fuel storage, distribution and dispensing facilities and supplementing Titles 34 and 54 of the Revised Statutes and Title 54A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. )(pending before the Legislature as this bill):

“County emergency management coordinator” means the county emergency management coordinator appointed pursuant to section 12 of P.L.1953, c.438 (C.App.A:9-42.1).

"Declared state of emergency" means any state of emergency within this State declared by the Governor or by the President of the United States.

"Disaster" means any natural, technological, or civil emergency that causes damage of sufficient severity and magnitude to result in a declaration of a state of emergency by the Governor or the President of the United States.

"Duly authorized weights and measures officer" means and includes the Superintendent of the Division of Weights and Measures or the superintendent’s assistants or inspectors, a county or assistant county superintendent of weights and measures or inspectors, or a municipal or assistant municipal superintendent of weights and measures or inspectors.

"Gasoline station" or "station" means a place of business located in the State and used for the retail sale and dispensing of motor fuel into the tanks of motor vehicles.

“Local building inspector” means any municipal officer charged with or responsible for the enforcement of building codes.

"Motor fuel" means any fuel which is used for the propulsion of motor vehicles.

"New Jersey Disaster Motor Fuel Supplier Program" or “program” means the "New Jersey Disaster Motor Fuel Supplier Program" established in section 6 of P.L. , c. (C. )(pending before the Legislature as this bill).

"Retail dealer" means a person operating a gasoline station. "Sale" means any transfer, gift, sale, offer for sale, or advertisement for sale in any manner or by any means whatsoever, including any transfer of motor fuel from a person to itself or an affiliate at another level of distribution, but does not include product exchanges at the wholesale level of distribution.

“State Office of Emergency Management” means the State Office of Emergency Management in the Division of State Police in the Department of Law and Public Safety

"Terminal facility" means any inland, waterfront, or offshore appurtenance on land used for the purpose of storing, handling, or transferring motor fuel, but does not include bulk storage facilities owned or operated by a wholesaler.

"Wholesaler" means any person, other than a refiner or dealer, who purchases motor fuel at a terminal facility and supplies motor fuel to retail outlets.

2. No later than December 31, 2014, each terminal facility and wholesaler that engages in the sale of motor fuel in this State shall be capable, in the event of a disaster, of operating its motor fuel distribution loading racks using an alternate generated power source for a minimum of 72 hours. Pending a post-disaster examination of such distribution loading racks to determine any damage that would render it unsafe to use, each terminal facility and wholesaler shall have such alternate generated power source available for operation no later than 24 hours after the disaster. Initial inspection for proper installation and operation of the alternate generated power source shall be completed by a local building inspector, and verification of the inspection shall be submitted to the county emergency management coordinator. A duly authorized weights and measures officer shall check to ensure that the alternate generated power source is available and in good operating order during regular inspections of the terminal facility’s and wholesaler’s operations.

3. Each newly constructed or substantially renovated gasoline station for which a certificate of occupancy is issued on or after September 1, 2014 shall be pre-wired with an appropriate transfer switch, and capable of operating all fuel pumps, dispensing equipment, life-safety systems, and payment acceptance equipment using an alternate generated power source. A local building inspector shall verify the installation and operational capability of the transfer switch and alternate generated power source in the normal inspection process before issuing a certificate of occupancy. A copy of the certificate of occupancy shall be provided to the county emergency management coordinator upon issuance of the certificate. A duly authorized weights and measures officer shall check to ensure that the transfer switch and alternate generated power source is available and in good operating order during regular inspections of the gasoline station. As used in this section, "substantially renovated" means a renovation that results in an increase of greater than 50 percent in the assessed value of the gasoline station.

4. No later than December 31, 2014, all gasoline stations having eight or more fueling positions that are within five miles of an interstate highway or a State or federally-designated evacuation route shall be pre-wired with an appropriate transfer switch and capable of operating all fuel pumps, dispensing equipment, life-safety systems, and payment acceptance equipment using an alternate generated power source. The initial inspection for the proper installation and operability of the transfer switch and alternate generated power source shall be completed by a local building inspector, and verification of the inspection shall be submitted to the county emergency management coordinator. A duly authorized weights and measures official shall check to assure that the transfer switch and alternate generated power source is available and in good operating order during regular inspections of those gasoline stations.

5. a. Sections 3 and 4 of P.L. , c. (C. )(pending before the Legislature as this bill) shall apply to any gasoline station regardless of whether the gasoline station is located on the grounds of, or is owned by, a retail business establishment that does not engage in the sale of motor fuel.

b. Sections 3 and 4 of P.L. , c. (C. )(pending before the Legislature as this bill) shall not apply to:

(1) A person licensed as a motor vehicle dealer under R.S.39:10-19;

(2) A person who operates a fleet of motor vehicles; or

(3) A person who engages in the sale of motor fuel exclusively to operators of fleets of motor vehicles.

6. There is established the "New Jersey Disaster Motor Fuel Supplier Program" within the Department of Law and Public Safety. The program shall allow any retail dealer doing business in this State to participate in a network of emergency responders to provide motor fuel supplies and services at their gasoline stations to government, medical, critical infrastructure, and other emergency responders, as well as the general public, during a declared state of emergency. Participation in the program shall require a pre-certification by the State Office of Emergency Management of preparedness of the retail dealer to provide emergency motor fuel supplies and services. The Director of the State Office of Emergency Management shall establish the requirements for pre-certification no later than September 1, 2014. The Director of the State Office of Emergency Management shall issue to retail dealers that are pre-certified a logo decal for public display to alert emergency response personnel and the public that the retail dealer is capable of assisting in a declared state of emergency.

7. A retail dealer shall not be pre-certified, pursuant to section 6 of P.L. , c. (C. )(pending before the Legislature as this bill), unless that retail dealer shall have the on-site capability to provide motor fuel dispensing services to emergency responders, demonstrates the ability to have those services available within 24 hours after a declared state of emergency, and agrees to make those services available as needed. A retail dealer may choose to sell motor fuel through pre-existing contracts with local, State, and federal emergency response agencies or may provide point-of-sale service to those agencies. In addition, a retail dealer may choose to sell to the general public, or may be directed to provide that service by county or State emergency management personnel. If requested by a participating retail dealer, State Police officers may be provided to a retail dealer for the purpose of maintaining civil order during operating hours.

8. During a declared state of emergency, emergency response personnel who can produce appropriate identification, as determined by State or county emergency management officials, shall be given priority for motor fuel purchases at gasoline stations operated by retail dealers that are certified under the program. A gasoline station so certified may be directed by county or State emergency management officials to remain open for a period during a declared curfew to provide service for emergency personnel. Under that direction, a gasoline station shall not be in violation of the curfew and shall not be penalized for such operation, nor shall the emergency personnel be in violation of such curfew.

9. A retail dealer that is pre-certified, pursuant to section 6 of P.L. , c. (C. )(pending before the Legislature as this bill), may request the Director of the State Office of Emergency Management for priority re-supply fueling in order to continue service to emergency responders during a declared state of emergency. The request shall not be binding, but shall be considered by emergency response personnel in determining appropriate response actions.

10. a. A retail dealer that participates in the program established pursuant to section 6 of P.L. , c. (C. )(pending before the Legislature as this bill), shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 25 percent of the cost of the purchase and installation during the privilege period of the transfer switch and alternate generated power source required to meet the certification requirements established by the State Office of Emergency Management. The total tax credit to be allowed to a taxpayer for such costs shall not exceed $15,000.

The amount of any credit otherwise allowable under this section that cannot be applied for the privilege period due to the limitations of subsection b. of this section, may be carried forward for use in the seven privilege periods following the privilege period for which the credit is allowed.

b. The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the director. Credits allowable pursuant to this section shall be applied in the order of the credits' privilege periods. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).

11. a. A retail dealer that participates in the program established pursuant to section 6 of P.L. , c. (C. )(pending before the Legislature as this bill) shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the cost of the purchase and installation during the taxable year of the transfer switch and alternate generated power source required to meet the certification requirements established by the State Office of Emergency Management. The total tax credit to be allowed to a taxpayer for such costs shall not exceed $15,000.

b. The amount of the credit applied under this section for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq., shall not exceed 50 percent of that amount of the taxpayer's liability for tax for the taxable year that bears the same proportional relationship to the total amount of that liability as the amount of the taxpayer's gross income, derived from New Jersey sources and attributable to the business or professional activity of the taxpayer's entire gross income for that year. A credit allowed pursuant to this section shall be taken only after the taxpayer has taken all credits allowed under section 2 of P.L.2000, c.80 (C.54A:4-7). The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection may be carried for use in the seven taxable years following the taxable year for which the credit was allowed.

c. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.

12. The Department of Law and Public Safety shall study the progress in post-disaster motor fuel supply distribution and provide

a report to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), by March 1, 2015. The report shall include information on the compliance with P.L. , c. (C. ) (pending before the Legislature as this bill), and the identification of all retailers that are participating in the program.

13. The Department of Law and Public Safety, in consultation with the Department of the Treasury, shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

14. This act shall take effect on the 60th day after the date of enactment, but the Director of the State Office of Emergency Management may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

STATEMENT

This bill provides for a number of measures designed to assure the operation of certain motor fuel storage, distribution and dispensing facilities during disasters and emergencies.

Specifically, the bill requires that no later than December 31, 2014, each motor fuel terminal facility and wholesaler that sells motor fuel in this State shall be capable, in the event of a disaster, of operating its motor fuel distribution loading racks using an alternate generated power source for a minimum of 72 hours. The bill further requires that each newly constructed or substantially renovated gasoline station for which a certificate of occupancy is issued on or after September 1, 2014, and all gasoline stations having eight or more fueling positions that are within five miles of an interstate highway or a State or federally-designated evacuation route by no later than December 31, 2014, are to be pre-wired with an appropriate transfer switch, and be capable of operating all fuel pumps, dispensing equipment, life-safety systems, and payment acceptance equipment using an alternate generated power source.

The bill establishes the "New Jersey Disaster Motor Fuel Supplier Program" (program) within the Department of Law and Public Safety. The program is to allow any motor fuel retail dealer doing business in this State to participate in a network of emergency responders to provide motor fuel supplies and services at their gasoline stations to government, medical, critical infrastructure, and other emergency responders, as well as the general public, during a declared state of emergency. Participation in the program would require a pre-certification of preparedness of the retail dealer by the State Office of Emergency Management (OEM) to provide emergency motor fuel supplies and services. The Director of the State OEM is to establish requirements for pre-certification by no later than September 1, 2014. A retail dealer is not to be pre-certified unless that retail dealer has the on-site capability to provide motor fuel dispensing services to emergency responders, demonstrates the ability to have the service available within 24 hours after a declared state of emergency, and agrees to make the service available as needed.

The bill provides that, during a declared state of emergency, emergency response personnel who can produce appropriate identification, as determined by State or county emergency management officials, are to be given priority for motor fuel purchases at gasoline stations operated by retail dealers that are certified under the program. Certified gasoline stations may be directed by county or state emergency management officials to remain open for a period during a declared curfew to provide service for emergency personnel. Under that direction, certified gasoline stations are not to be deemed in violation of the curfew and are not to be penalized for such operation, nor shall the emergency personnel be in violation of such curfew. Retail dealers that are pre-certified may request the Director of the State OEM for priority re-supply fueling in order to continue service to emergency responders.

The bill provides to a retail dealer participating in the program a tax credit in an amount equal to 25 percent of the cost of the purchase and installation during the taxable year of the transfer switch and alternate generated power source required to meet the certification requirements established by the State OEM. The total tax credit to be given to a retail dealer is not to exceed $15,000.