What's happening
This bill extends financial assistance from the Urban Development Corporation to local governments affected by electric plant closures from seven to ten years.
Why it matters
Extending financial assistance from seven to ten years gives local governments more time to adapt to the loss of tax revenue from electric plant closures, helping them avoid abrupt budget cuts to essential services like schools, public safety, and infrastructure.
The bill maintains a decreasing scale of aid, but provides a consistent 20% loss-replacement for years 8–10, offering a predictable, though reduced, safety net for longer-term fiscal planning and economic transition efforts.
Communities facing plant closures often struggle to attract new economic drivers; this extension gives them a longer window to pursue redevelopment, workforce retraining, or replacement industries without immediate financial crisis.
By cushioning the revenue impact for a full decade, the legislation may help stabilize property values and community services, reducing the risk of population decline or economic distress that can follow major local employer shutdowns.
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Who cares
Headline styles
Aid For Lost Power Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local governments
- Delivered to assembly
- Passed senateVote 60–2
- Ordered to third reading cal.1521
- Committee discharged and committed to rules
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Aid for Local Governments
In Assembly Committee · Local Governments · Sponsor William Conrad
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
649
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. S. RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend subpart H of part C of chapter 20 of the laws of 2015, relating to appropriating money for certain municipal corporations and school districts, in relation to authorizing 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, relating to appropriating money for certain municipal corporations and school districts, as amended by section 1 of part XX of chapter 55 of the laws of 2021, is amended to read as follows:
Section 1. Contingent upon available funding, and not to exceed $140,000,000 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 (i) on or after June 25, 2015, an electric generating facility located within such local government entity has ceased operations, and (ii) the closing of such facility 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, 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 authorities law, or the local industrial development agency established pursuant to article eighteen-A of the general municipal law that such cessation has resulted in a reduction in the real property tax
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD02460-01-5
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] ten years, and shall award payments reflecting the loss of revenues due to the cessation of operations 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
8 no more than twenty percent of loss of revenues
9 no more than twenty percent of loss of revenues
10 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 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. 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 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. 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 year of operations and the current real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties. The total amount awarded from this program shall not exceed $140,000,000.
§ 2. 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 subpart H of part C of chapter 20 of the laws of 2015, relating to appropriating money for certain municipal corporations and school districts, in relation to authorizing funding to local government entities from the urban development corporation
Purpose
This amendment would extend the number of years eligible municipal corporations and school districts can receive mitigation assistance when facing loss of tax or PILOT revenue from the closure of electric gener- ating facilities. This amendment would extend the window of eligibility for assistance from the current 7 years to a total of 10 years.
Summary of provisions
Section 1: amends subpart H of part C of chapter 20 of the laws of 2015 to specify that the mitigation fund shall be available for a period of 10 years. Specifies the maximum available award for years eight, nine, and ten.
Section 2: effective date.
Justification
The electric generation facility cessation mitigation program was created to provide funding assistance to support counties, towns, cities, villages, school districts and special districts that experience a reduction in the amount owed in real property taxes and/or PILOTs by an electric generating facility. Under the current structure of the program, a local government entity may receive annual funding over seven years. In each year for which an application is made, the revenue loss from the amount owed in the last year of operation must be 20% or great- er and occur as a direct result of the electric generating facility ceasing operations. Since the inception of this legislation in 2015, municipal corporations and school districts continue to face the dire consequences of lost revenue due to a facility closure. This amendment extends the funding formula for an additional three years to ensure that such local government entities are able to compensate for lost revenue.
Legislative history
2024: S.8640/A.8956 Passed Senate
Fiscal implications
None to the state, as additional appropriations have already been made to the fund.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.