Relates to a proposed electric generating facility in the county of Suffolk

BILL NUMBER:S4594

Title of bill

An act in relation to a proposed electric generating facility in the county of Suffolk; and providing for the repeal of such provisions upon expiration thereof

Purpose

This bill would encourage the development of a new or repowering electric generation project in the Village of Port Jefferson to replace existing, outdate and inefficient power facilities on a potentially contaminated property that would be restored with a modem, efficient power source.

Summary of provisions

Section 1. Describes the tax plots on which an electric generation project could be sited. In addition, if such a site and proposed project meeting stated criteria qualifies as a qualified site pursuant to the State's Brownfield cleanup Project, such project would be deemed to be a manufacturing facility and would be placed in an environmental zone. For such a project to qualify as a manufacturing facility and be eligible for environmental zone designation, it would have to demonstrate an efficiency rating of at least forty-eight percent, be capable of producing at least 600 MW of power running at least 7,000 hours a year, achieve markedly improved emission controls compared to the site's existing generation facilities and the developer would have to safely remediate the site to State registry standards and remove the existing structures. In addition, the site would have to qualify for tax credits no later than March 31, 2018 and would have to be placed in service no later than March 31, 2021.

Section 2. Sets forth the effective date.

Justification

This will would provide an incentive for the remediation of a Port Jefferson Brownfield and would also incent the development of a new, close to state of the art facility on the site to drastically improve the availability, cost and reliability of electric power for the businesses and residents in the surrounding areas of Suffolk County. The bill would provide an investor in the new facility a minimum of millions in refundable development credits, cover at least 25% of cleanup and infrastructure expenses and provide up to a full property tax or PILOT rebate from the State for 10 years, depending on how many full time positions were employed at the site.

These taxes, generated from multiple times more valuable plants, would provide a significantly larger and more stable revenue base for the affected school district, village, town and county. A new facility would be significantly cleaner and more reliable and would provide much more power at cheaper production costs to the region for resident's and businesses and allow for future growth in the area.

Legislative history

2011-12 S.5698A

Fiscal implications

Millions in state remediation and redevelopment tax credits over a five year period under current law, more than offset by a significant regional boost in state personal income, corporation, franchise, sales and energy specific taxes and other revenues.

Local fiscal implications

Provide a stable base for local, village, county and school district revenues.

Effective date

Immediately with a repeal of the act on April 1, 2021.