New York Assembly Bill A03626

New York 2025-2026 Regular Session

• Introduced: 1/29/25
• Refer: 1/29/25
• Refer: 1/7/26

Caption

Authorizes funding to local government entities from the urban development corporation through the electric generation facility cessation mitigation fund for an additional three years.

Summary

This bill extends and expands the electric generation facility cessation mitigation program, which provides state funding through the Urban Development Corporation to local government entities that lose property tax revenue when an electric generating facility closes. Under the bill, eligible counties, cities, towns, villages, school districts, and special districts may receive annual assistance if a facility located in their jurisdiction ceased operations on or after June 25, 2015 and the closure caused at least a 20 percent reduction in real property tax collections or payments in lieu of taxes. The bill increases the maximum duration of assistance from seven years to ten years and continues to cap total program funding at $140 million. It also preserves the existing first-come, first-served application process, requires confirmation from the Department of Public Service and the relevant grid operator that the facility has retired or is no longer participating in the market, and bases the payment amount on the difference between the facility’s last year of tax/PILOT payments and its current tax/PILOT obligation. The bill takes effect immediately.

Impact

The bill amends a 2015 appropriation law to authorize additional years of state-backed mitigation payments for local governments affected by the closure of electric generating facilities. It does not create a new tax or regulatory program, but it extends the period during which eligible local entities can receive Urban Development Corporation assistance from the electric generation facility cessation mitigation fund, thereby affecting state appropriations and local revenue replacement for impacted jurisdictions.

Sentiment

The available context suggests the bill is generally supportive of local governments facing sudden revenue losses from power plant retirements. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of opposition or debate in the supplied materials. The bill’s purpose and structure indicate a remedial, revenue-stabilizing approach that is likely to be viewed favorably by affected municipalities and school districts.

Contention

The main policy issue embedded in the bill is the extension of state aid for up to three additional years, which may raise concerns about the length and size of state exposure under a capped $140 million program. Potential points of contention include whether assistance should continue for ten years rather than seven, whether the first-come, first-served allocation method is the best way to distribute limited funds, and whether the eligibility threshold tied to a 20 percent tax revenue loss is appropriately targeted. No specific opposing stakeholders or arguments are identified in the provided record.