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S 9617

Authorizes funding to local government entities from the urban development corporation

2025 Regular Session Introduced by Pete Harckham

The bill provides up to $140 million from the Urban Development Corporation to local governments for revenue losses from electric plant closures, phased over 12 years.

RETURNED TO SENATE
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Bill Summary · S 9617

Summary of Bill S. 9617-A (2025-2026) – New York

Purpose and intent

This bill amends subpart H of part C, chapter 20 of the Laws of 2015 to authorize funding from the Urban Development Corporation (UDC) to local government entities that have experienced the closure of an electric generating facility within their jurisdiction. The overarching aim is to mitigate revenue losses—specifically real property tax and payments in lieu of taxes (PILOTs)—resulting from such closures.

Key provisions and changes

  • Funding authorization and cap: Contingent on available funding, up to $140 million from the UDC is made available to eligible local government entities (counties, cities, towns, villages, school districts, or special districts).
  • Eligibility criteria: The facility must have ceased operations on or after June 25, 2015 and its closure must have caused at least a 20% drop in real property tax revenue or PILOTs owed by the facility.
  • Payment structure and duration: Eligible entities receive annual payments on a first-come, first-served basis, within a reasonable time after verification from the state Office of Real Property Tax Services (ORPTS) or relevant development authorities. The UDC cannot provide assistance for more than 12 years (replacing a prior 7-year cap).
  • Amortization of losses: Annual award percentages of the facility’s revenue loss decline over a 12-year schedule:
    • Year 1: up to 80%
    • Year 2: up to 70%
    • Year 3: up to 60%
    • Years 4–12: up to 50%, 40%, 30%, and then 20% for Years 7–12 (with Years 8–12 consistently capped at 20%)
  • Single annual payment limit: A local government entity may receive only one payment per year under this program.
  • Trigger and sequencing with facility retirement: An entity may apply once a generator has filed its retirement/exit with the federally designated Electric Bulk System Operator (BSO) and is no longer eligible to participate in BSO markets. The actual payment is contingent on the facility’s retirement or ineligibility to participate in BSO markets.
  • Application attestation: Applicants must submit an attestation to the Department of Public Service (DPS) that the facility is no longer producing electricity and not participating in BSO markets; DPS will confirm this with the BSO.
  • Determination of payment amount: DPS confirms the final annual payment amount as the difference between last year’s real property taxes/PILOTs and current taxes/PILOTs (excluding interest and penalties). The total program cap remains $140 million.
  • Effective date: The act takes effect immediately.

Who is affected

  • Local government entities within New York that host a qualifying electricity generating facility and experience a specified revenue loss due to cessation.
  • State agencies involved in validation and administration: DPS, ORPTS, and local development authorities or industrial development agencies.
  • Electric generating facilities (and their operators) contemplating retirement or cessation, insofar as their status activates eligibility.

Procedural and timeline notes

  • Funding availability is subject to the state’s fiscal constraints (contingent on available funding).
  • The payment schedule operates on a first-come, first-served basis within the 12-year limit, following facility retirement and DPS/BSO confirmation.
  • The bill amends and extends a prior framework that previously capped assistance at seven years.

This bill adds a targeted, longevity-adjusted mitigation mechanism to compensate local governments for revenue losses linked to the retirement of qualifying electric generating facilities.

Compiled from official sources — confirm details with the bill’s official record.

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