Establishes the New York state tax on dry cask storage fund directing certain nuclear generating facilities to transfer certain monies in exchange for the storage of dry casks

1 Co-sponsor

• Michael H. Ranzenhofer

Title of bill

An act to amend the state finance law, in relation to establishing the New York state tax on the dry cask storage fund and to direct certain nuclear generating facilities to transfer certain monies in exchange for the storage of dry casks containing spent fuel

Purpose

This bill will establish a New York State tax on the dry cask storage fund at any nuclear facility in New York State that is located in an emergency planning zone (EPZ) with a population exceeding two hundred thousand people. The funds in account may be expended for both development of renewable resources via NYSERDA with a priority for projects in schools and municipal buildings statewide and for reimbursement of related emergency expenditures by counties in the EPZ.

Summary of provisions

Section 2. Amends the state finance law by adding a new section 99-t which creates a special revenue fund to be known as the "New York State tax on dry cask storage fund"

Justification

1. Unintended use of property: With any commercial enterprise, when new structures are added, business must pay additional tax. Thus, exempting the nuclear power industry from this standard practice holds the nuclear providers to a separate standard.

2. Local facilities not intended for long-term storage: Individual nuclear power plants were not intended to serve as long-term waste repositories. For years nuclear plants have been operating with an assumption that a federal repository for nuclear waste would one day be in place. Currently there is no solution to long-term nuclear waste storage; future regulation of such waste, which has a half-life of thousands of years, is unclear.

3. Added security risk, especially in high density EPZs: Long-term waste casks, especially when clustered, present an attractive terrorist target. This places an undue burden upon the municipalities that must protect the surrounding population. This bill deters storage of nuclear waste.

4. Minnesota precedent: Minnesota current places a tax upon long-term nuclear waste storage casks.

Legislative history

2010 New Bill

Fiscal implications

This bill will provide a source of revenue for emergency planning zone counties of Westchester, Rockland, Orange and Putnam for emergency services and provides a revenue stream for NYSERDA. There is an expectation that 70 casks will soon be stored at one of the state's nuclear facilities that meets the population criteria in this bill.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addiction, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.