New Jersey Retailers Oppose Generator Mandate

With hurricane season in full swing, fuel retailers argue that generator legislation won’t help fuel shortages triggered by weather.

June 12, 2013

TRENTON – With the New Jersey Legislature still considering a requirement that gasoline stations install generators, retailers are ramping up their opposition, the Record reports. Hurricane season began June 1 and runs through November 30.

Lawmakers introduced legislation that would mandate state gasoline station have back-up power, such as generators, in response to last October’s Superstorm Sandy. Close to 12 measures are before the Assembly and Senate related to generators at gasoline stations. 

“This is not a simple issue like going to Home Depot, grabbing one of those generators, hooking it up and plugging your pumps in,” said Sal Risalvato, executive director of the New Jersey Gasoline C-Store Automotive Association. “If that was it, I don't think anybody would be squawking.”

Not many retailers currently have generators, given the cost of installing and maintaining the back-up power source. But generators won’t solve the underlying problem that Sandy triggered: no fuel. Damage to distribution terminals at ports disabled supply lines to North Jersey retailers. 

“The problem was not power,” said Risalvato. “The problem was no gas…If every gas station prior to the storm had a backup generator, you would have seen the identical situation.”

In February, Risalvato testified before the Assembly Homeland Security and State Preparedness Committee on this issue. Currently, the only bill favored by Risalvato and many retailers is one that would put in place a test program that would give 0% loans up to $10,000 to gasoline stations along evacuation routes to be wired for generator hookup.

In neighboring New York, Gov. Andrew Cuomo wants a third of all state retail fuels locations to have the proper wiring for backup power. A backgrounder on how Hurricane Sandy affected the fuels market and a look at possible solutions to avoid future problems (hint: not generators) was published as part of the 2013 NACS Retail Fuels Report. It notes, "(T)o mandate generators at stores would not have helped with Sandy, given the widespread upstream problems. If power is out at the store, it is likely that the nearby upstream operations are also without power. No amount of power at the retail station would expedite the delivery of fuel if these systems are not operable."

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