New York Assembly Bill A02617

New York 2025-2026 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25
• Refer: 1/7/26

Caption

Relates to providing water utilities with access to water quality infrastructure improvement funding.

Summary

This bill expands eligibility for certain state water infrastructure financing and assistance programs to include water utilities regulated by the Public Service Commission, not just municipalities. It amends the Public Authorities Law, Public Health Law, and the New York State Water Infrastructure Improvement Act of 2017 so that water utilities may be treated as “recipients” of water quality infrastructure funding, so long as the project has a clear and definite public purpose and benefits the utility’s customers. It also limits annual appropriated assistance to no more than $5 million per municipality or water utility. The bill further requires that state financial assistance be available for water quality infrastructure projects involving replacement or repair of infrastructure, or projects needed to comply with environmental and public health laws and regulations related to water quality. In addition, it amends the Real Property Tax Law so that, for water utilities, certain water infrastructure improvements funded or financed through the 2017 water infrastructure program or the drinking water revolving fund are excluded from the definition of “special franchise.” Any tax relief from that exclusion must be used to reduce current water rates and offset future rate increases.

Impact

The bill would change state law to make investor-owned or PSC-regulated water utilities eligible for state water quality infrastructure grants and related assistance, subject to public-purpose and customer-benefit conditions. It would also create a property tax exclusion for qualifying water infrastructure improvements, which could reduce the taxable value of certain utility property and require corresponding rate relief to customers. The affected statutes include the Public Authorities Law, Public Health Law, the Water Infrastructure Improvement Act of 2017, and the Real Property Tax Law, with practical effects on the Environmental Facilities Corporation, water utilities, local tax assessment, and utility ratepayers.

Sentiment

Based on the bill text and available context, the measure appears generally supportive of infrastructure investment and customer rate relief, with no recorded committee debate or votes indicating opposition or amendment activity. The bill’s structure suggests a policy consensus around expanding access to funding for water quality projects while imposing safeguards that the projects serve a public purpose and benefit customers. Because no transcripts or votes are provided, there is no documented split in sentiment in the available record.

Contention

The main policy issue is whether water utilities should receive the same access to state water infrastructure funding that municipalities already have. Potential concerns include the use of public funds for privately owned or regulated utilities, the need to ensure projects truly serve a public purpose, and the fiscal effect of the new tax exclusion on local tax bases. The bill addresses these concerns by requiring customer benefit, capping annual assistance, and directing any tax savings to lower water rates and future rate stabilization.