What's happening
This bill changes how utility costs are assessed, requires disclosure of ratepayer costs for environmental compliance, and creates a related tax credit.
Why it matters
Shifts utility oversight funding. from an assessment system (where utilities are directly charged for regulatory costs) to a model where such costs must be appropriated by the state legislature, potentially increasing legislative oversight and transparency over how regulatory agencies are funded.
Mandates public disclosure of environmental compliance costs. by requiring the Public Service Commission to calculate and publish the average cost per ratepayer for rules related to New York’s climate and emissions goals, allowing consumers and policymakers to see the direct financial impact of climate policies on utility bills.
Introduces targeted tax credits. for both individuals (with incomes up to $250,000) and business taxpayers to offset the costs passed on to them as a result of environmental compliance by utilities, which could lessen the financial burden on ratepayers while maintaining the push for environmental reforms.
Creates a formal mechanism for tracking and refunding excess costs. related to environmental compliance, enabling taxpayers to claim credits or refunds for amounts that exceed their tax liability and ensuring that overpayments are not simply absorbed by the state.
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Give Tax Credit to Ratepayers
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1031
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. ROLISON -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to costs and expenses of the department of public service and the public service commission; to amend the tax law, in relation to providing for a ratepayer protection tax credit; and to repeal certain provisions of the public service law relating to the assessment of costs and expenses of the department of public service and the public service commission
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 18-a of the public service law, as amended by section 2 of part NN of chapter 59 of the laws of 2009, is amended to read as follows:
[1.] All costs and expenses of the department and commission shall be paid pursuant to appropriation by the legislature on the certification of the [chairman] chair of the department and upon the audit and warrant of the comptroller. The state treasury shall be reimbursed therefore by payments to be made thereto from all moneys collected pursuant to this chapter. The total of such costs and expenses shall be borne by the public utility companies (including for the purposes of this section municipalities other than municipalities as defined in section eightynine-l of this chapter), corporations (including the power authority of the state of New York), and persons subject to the commission's regulation, to be assessed in the manner provided in [subdivisions two, three and four of this section and] section two hundred seventeen of this chapter.
§ 2. Subdivisions 1-a, 2, 3, 4, 4-a, 4-b and 5 of section 18-a of the public service law are REPEALED.
§ 3. Section 5 of the public service law is amended by adding a new subdivision 7 to read as follows:
7. (a) The commission, in consultation with the comptroller, shall develop a formula to determine the average cost, on a per ratepayer
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01985-01-5
basis, to comply with the provisions set forth in article seventy-five of the environmental conservation law, or any other rule or regulation promulgated by a state agency prior to the effective date of this subdivision, or any subsequent action taken thereafter, to meet the emissions goals set forth by article seventy-five of the environmental conservation law.
(b) Beginning March first, two thousand twenty-six, the commission, thirty days prior to issuing any order, directive, rule, or regulation, shall disclose to the public through public notice and on their website the cost, as determined by the formula developed by the commission per this subdivision, of any order, directive, rule, or regulation issued to comply with article seventy-five of the environmental conservation law by the commission.
§ 4. Section 606 of the tax law is amended by adding a new subsection (bbb) to read as follows:
(bbb) Ratepayer protection credit. (1) Allowance of credit. An individual taxpayer whose annual gross income does not exceed two hundred fifty thousand dollars shall be allowed a credit against tax imposed by this article for the cost of the implementation of article seventy-five of the environmental conservation law as determined by subdivision seven of section five of the public service law.
(2) Carryover of credit and refundability. If the amount of the credit, and carryovers of such credit, allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, such excess amount may be carried over to the five taxable years next following the taxable year with respect to which the credit is allowed and may be deducted from the taxpayer's tax for such year or years. For taxable years beginning on or after January first, two thousand twenty-seven, if the amount of the credit allowable under this subsection shall exceed the taxpayer's tax liability for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 5. The tax law is amended by adding a new section 187-s to read as follows:
§ 187-s. Ratepayer protection credit. 1. Allowance of credit. A taxpayer shall be allowed a credit for the cost of the implementation of article seventy-five of the environmental conservation law as determined by subdivision seven of section five of the public service law against the taxes imposed by sections one hundred eighty-three, one hundred eighty-four and former section one hundred eighty-six of this article; provided, however, that the amount of such credit allowable against the tax imposed by section one hundred eighty-four of this article shall be the excess of the amount of such credit over the amount of any credit allowed by this section against the tax imposed by section one hundred eighty-three of this article.
2. Carryovers. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three or former section one hundred eighty-six of this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
§ 6. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law, in relation to costs and expenses of the department of public service and the public service commission; to amend the tax law, in relation to providing for a rate- payer protection tax credit; and to repeal certain provisions of the public service law relating to the assessment of costs and expenses of the department of public service and the public service commission
Purpose or general idea of bill
To direct the Public Service Commission (PSC) and the Comptroller to determine the cost of the Climate Leadership and Community Protection Act (CLCPA) mandates for each ratepayer and to establish a credit for ratepayers and businesses to cover those costs.
Summary of provisions
Section 1: Amends subdivision 1 of section 18-a of the public service law to read: all costs and expenses of the department and commission shall be paid pursuant to appropriation by the legislature.
Section 2: Repeals subdivisions 1-a, 2, 3, 4, 4-a, 4-b and 5 of section 18-a od the public service law.
Section 3: Amends section 5 of the public service law to add a new subdivision 7 (a) to direct the public service commission and the comp- troller to develop a formula to determine the average cost on a per ratepayer basis to comply with provisions set forth in article seventy- five of the environmental conservation law or rules or regulations promulgated by a state agency to meet emissions goals. Subdivision 7 (b)beginning on March 1, 2025, the commission must disclose the cost to the public thirty days prior to issuing and order, directive, rule or regulation.
Section 4: Amends section 606 of the tax law by adding new subsection bbb to establish a ratepayer protection credit for those with an annual gross income of less than $250,000 for the cost of implementation of article seventy-five of the environmental conservation law. Part 2 allows a carryover of the credit.
Section 5: Amends the tax law to add a new section 187-s to establish a corporate ratepayer protection credit for the cost of implementation of article seventy-five of the environmental conservation law. Part 2 allows a carryover of the credit.
Section 6: States the effective date.
Justification
It's no secret energy bills are skyrocketing. New Yorkers across the state are struggling to get by, and the increased costs of utility bills are just pouring salt on the wound. Democratic Comptroller DiNapoli estimates that ratepayers have already paid $2.6 billion toward the clean-energy standard and the Climate Action Council's own plan esti- mates that the CLCPA will cost taxpayers more than $3 00 billion' -- an annual cost of $1,300 to $1,600 per household, according to the nonpar- tisan Empire Center for Public Policy. As more mandates are placed on our energy grid, energy prices will continue to increase, putting New Yorkers further and further behind.
This bill directs the PSC and the Comptroller to determine the cost of these mandates for each ratepayer and give that money back to ratepayers so that New Yorkers are not burdened with the costs of mandates handed down from Albany. In addition, it further cuts existing taxes that will save ratepayers over $100 million.
Prior legislative history
2024 S9893: Referred to Rules
Fiscal implications for state and local governments
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.