S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2504
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             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 ASSEM-
 BLY, 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 DEMON-
 STRATES 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  SUBDIVI-
 SION (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 develop-
 ment 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 ELECTRIC-
 ITY 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  appli-
 cation  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 participat-
 ing 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 corpo-
 ration 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.