What's happening
This bill expands eligibility for state aid to local governments affected by electric generating facilities that close or operate at less than 15% of capacity.
Why it matters
Addresses local budget shocks from reduced power plant activity. By expanding eligibility to communities where a plant is still open but producing less than 15% of its capacity, the bill recognizes that sharp drops in electricity production can harm local tax bases nearly as much as full closures.
Helps local governments and schools plan for revenue loss. The bill creates a graduated, multi-year aid schedule (declining from 80% to 20% over seven years) to help local governments and school districts adjust to reduced property tax or PILOT (payment in lieu of taxes) revenues, rather than facing a sudden fiscal cliff.
Reflects the energy transition’s impact on communities. As energy generation shifts (due to market changes or environmental policy), plants may ramp down rather than close outright; this bill acknowledges that such changes can still destabilize local economies and public services, and provides a safety net.
Prioritizes urgent cases and maintains fiscal limits. Aid is distributed on a first-come, first-served basis, subject to a $69 million overall cap, ensuring that the most affected municipalities have a chance at support while keeping costs predictable for the state.
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Who cares
Headline styles
Aid for Tax-Loss Towns
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to finance
- Referred to finance
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2504
2019-2020 Regular Sessions
IN SENATE
January 25, 2019
Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Finance
AN ACT to amend subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, in relation to funding to local government entities from the urban development corporation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1 of subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, as amended by section 1 of part AAA of chapter 59 of the laws of 2018, is amended to read as follows:
Section 1. Contingent upon available funding, and not to exceed $69,000,000 moneys from the urban development corporation shall be available for a local government entity, which for the purposes of this section shall mean a county, city, town, village, school district or special district, where: (a) (i) on or after June 25, 2015, an electric generating facility located within such local government entity has ceased operations, [and] or (ii) that an operational facility demonstrates that its actual electricity production in the prior year was less than 15% of its total generating capacity; and (b) the closing or diminished electricity production of such facility pursuant to subdivision (a) of this section has caused a reduction in the real property tax collections or payments in lieu of taxes of at least twenty percent owed by such electric generating facility. Such moneys attributable to the cessation of operations or diminished electricity production, shall be paid annually on a first come, first served basis by the urban development corporation to such local government entity within a reasonable time upon confirmation from the state office of real property tax services or the local industrial development authority established pursuant to titles eleven and fifteen of article eight of the public
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04947-01-9
S. 2504 2
authorities law, or the local industrial development agency established pursuant to article eighteen-A of the general municipal law that such cessation or diminished electricity production has resulted in a reduction in the real property tax collections or payments in lieu of taxes, provided, however, that the urban development corporation shall not provide assistance to such local government entity for more than seven years, and shall award payments reflecting the loss of revenues due to the cessation of operations or diminished electricity production as follows:
Award Year Maximum Potential Award
1 no more than eighty percent of loss of revenues
2 no more than seventy percent of loss of revenues
3 no more than sixty percent of loss of revenues
4 no more than fifty percent of loss of revenues
5 no more than forty percent of loss of revenues
6 no more than thirty percent of loss of revenues
7 no more than twenty percent of loss of revenues
A local government entity shall be eligible for only one payment of funds hereunder per year. A local government entity may seek assistance under the electric generation facility cessation or diminished electricity production mitigation fund once a generator has submitted its notice to the federally designated electric bulk system operator (BSO) serving the state of New York of its intent to retire the facility or of its intent to voluntarily remove the facility from service subject to any return-to-service provisions of any tariff, and that the facility also is ineligible to participate in the markets operated by the BSO or that an operational facility demonstrates that its actual electricity production in the prior year was less than 15% of its total generating capacity. The date of submission of a local government entity's application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an electric generating facility has retired or become ineligible to participate in the markets operated by the BSO. For purposes of this section, any local government entity seeking assistance under the electric generation facility cessation or diminished electricity production mitigation fund must submit an attestation to the department of public service that a facility is no longer producing electricity and is no longer participating in markets operated by the BSO or that an operational facility demonstrates that its actual electricity production in the prior year was less than 15% of its total generating capacity. After receipt of such attestation, the department of public service shall confirm such information with the BSO. In the case that the BSO confirms to the department of public service that the facility is no longer producing electricity and participating in markets operated by such BSO, it shall be deemed that the electric generating facility located within the local government entity has ceased operation. The department of public service shall provide such confirmation to the urban development corporation upon receipt. The determination of the amount of such annual payment shall be determined by the president of the urban development corporation based on the amount of the differential between the annual real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties, during the [last] most recent year of operations and the current real property taxes and payments in lieu
S. 2504 3
of taxes imposed upon the facility, exclusive of interest and penalties. The total amount awarded from this program shall not exceed $69,000,000.
§ 2. This act shall take effect immediately; provided, however, that the amendments to section 1 of subpart H of part C of chapter 20 of the laws of 2015 made by section one of this act shall not affect the repeal of such subpart and shall be deemed repealed therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, in relation to funding to local government entities from the urban development corporation
Purpose
The purpose of this bill is to allow for local government entities, meaning a county, city, town, village school district or special district, to receive moneys from the Urban Development Corporation due to the cessation of operations or diminished electricity production of an electric generating facility.
Summary of provisions
Section 1 establishes the criteria for a local government entity to receive moneys under this act, requiring that an electric generating facility has ceased operations or that an operational facility demon- strates that its actual electricity production in the prior year was less than 15% of its total generating capacity, and that such closure or diminished electricity production has caused a reduction in the real property tax collections or payments in lieu of taxes of at least 20% owed by such electric generating facility.
The section also details the maximum potential award over a seven year schedule and the process for submitting notice to the federally desig- nated electric bulk system operator of the intent to retire the facility or that its actual electricity production in the prior year was less than 15% of its total generating capacity.
Section 2 sets an immediate effective date.
Justification
Municipalities across New York State can receive money from the state for the closure of an electricity generating facility, which often results in greatly reduced taxes or PILOT payments for local government entities, including school districts. However, the impacts can be nearly as severe for an electric generating facility that is operating marginally, but has not completely closed.
This legislation will apply these transition fund moneys to communities that are facing large losses in tax or PILOT revenues due to greatly diminished electricity production at local facilities, such as in the town and school district of Lansing and Tompkins County, New York.
Prior legislative history
2017-2018: S.6533 referred to Finance/A.8287 referred to Ways and Means
Fiscal implications
$45,000,000, which is already appropriated.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.