NY State Launches Strategic Gasoline Reserve

on October 31, 2013 at 4:30 PM

Storm-Damaged Communities On East Coast Hit By Nor'Easter

NY State’s Strategic Gasoline Reserve will hold three million gallons of fuel to prevent emergency supply gaps.

On October 26, 2013, New York State Governor Andrew M. Cuomo launched the first U.S. state-based Strategic Gasoline Reserve as part of the Fuel NY initiative to prevent potential supply gaps during weather events and emergencies, such as Hurricane Sandy.  The $10 million reserve, expected to hold approximately three million gallons of fuel, will serve as a supplement to market deliveries to maintain adequate fuel levels during emergency recovery.  It will use the storage capacity of Northville Industries on Long Island, with a provision to deliver fuel to other parts of the state as needed.  The selection of Northville involved a competitive solicitation and is subject to contract approval.

NY-Gasoline-Supply-Map

Gas Stations along Highways and Evacuation Routes & Additional Chain Gas Stations (stormrecovery-ny)

According to the New York State Energy Research and Development Authority (NYSERDA), the most significant challenges during Sandy were gas station supply gapsand power outages that hindered gas-pumping.  The Fuel NY initiative, announced by Governor Cuomo in his June 2013 State of the State address, is a comprehensive measure that aims to create a fuel infrastructure protection strategy for NY State in response to gasoline disruptions that occurred during Sandy.  The initiative entails strong back-up power requirements for gas stations in strategic locations to ensure gasoline supply for first responders, essential personnel, and evacuating residents and motorists.

The Fuel NY initiative will provide up to $17 million in funding to assist back-up improvements in retail gas stations.  It requires approximately 50 percent of downstate gas stations in NYC, Long Island, and Westchester and Rockland counties to install back-up power.  NYSERDA will administer the funding program, enabling gas stations to install the necessary wiring to connect with portable emergency generators during extended power outages or install permanent back-up power generators.  Under the initiative, stations within a half-mile of a highway exit or evacuation route must wire a transfer switch by April 1, 2014 and prepare to install a generator within 24 hours of emergency power outage.  Beyond the half-mile distance, 30 percent of a specified chain of retail outlets must install a transfer switch by August 1, 2015 and prepare to install a generator within 48 hours of power outage.  New gas stations with building permits dated April 1, 2014 or later must have wiring for generator deployment or install a back-up generator.  Gas stations with sales volumes less than 75,000 gallons per month are exempt from the requirement.

October 28, 2013 via Energy Solutions Forum

Energy Solutions Forum is an energy policy research and data company based in New York City. Follow @EnergySolForum for policy research and stay plugged in with ESF Calendar, the industry’s go-to resource for energy business events in and around NYC.

Comments