On Thursday, October 30th, the New York Power Authority (NYPA) released two Requests for Information, taking the next step toward developing advanced nuclear projects in the state.
Earlier this year, Governor Hochul directed NYPA to develop at least one gigawatt of advanced nuclear projects in Upstate New York by 2030. Since then, NYPA has begun evaluating technologies and potential sites for one or more advanced nuclear generating facilities.
The RFIs released Thursday seek information from (1) contractors interested in working with NYPA on an advanced nuclear project and (2) interested Upstate communities to identify viable sites to host a NYPA advanced nuclear project.
As to the latter, the State hopes to identify communities with potential sites meeting the requirement for hosting or supporting nuclear power and that have supportive stakeholders with a vision of how such a project could align with local economic and social objectives. Such communities can range from villages and cities to counties and regions.
Eligible respondents for the community RFI are required to identify at least one site with a clear path to utilization for a new nuclear facility, demonstrated support from the community and key stakeholders, and the site must be physically capable of hosting such a project with appropriate size, water access, and protection from hazards. Access to water is highlighted, and the RFI encourages consideration of sites near existing transmission lines. Private ownership of the site is not discouraged as long as there is an existing engagement with the owner.
The community siting RFI represents an important next step in the development of advanced nuclear generation in New York. It will result in a short list of sites that could host the first nuclear development in the state in several decades. The RFI also indicates the sort of technology under consideration by NYPA. Although several companies have been working on technologies that do not require large amounts of water, listing water as an important factor for selection indicates that “advanced nuclear” is likely to mean small modular reactors of “next generation” technology, which are essentially scaled down versions of conventional reactors but with “passive” safety designs that are claimed to prevent meltdown even without operator involvement. Perhaps the best example of such technology, and the only one approved by the Nuclear Regulatory Commission (NRC), is Oregon-based NuScale’s small modular reactors which are submerged underground in individual “wells”.
Many questions remain open with respect to the legalities of siting these technologies. The legal landscape has changed dramatically since the last new reactor was sited in New York in 1974. Thus, it is not clear how state and federal law and the various involved regulators, including the NRC, may interact in the siting process. While it appears that, under current New York law, such projects would be sited under Article 10 of the Public Service Law, Governor Hochul has positioned siting of large renewable projects under Article 8 of the Public Service Law with the Office of Renewable Energy Siting and Electrical Transmission. In light of the Governor’s position that nuclear energy also helps the state reach its clean energy goals under the Climate Leadership and Community Protection Act, might the same happen with nuclear siting?
In addition, at the local level, the potential benefits to interested communities are unclear and could vary dramatically depending on the ultimate technology used and the structure of the project. For instance, questions remain if modular reactors that are refueled off-site would be subject to property taxes. Additionally, if a facility is co-located with a data center or other significant energy user that utilizes all or most of the energy produced, it may not earn sales tax for the community. Therefore, communities could be left with little economic incentive to host such a project.
Communities nevertheless interested in supporting such projects may consider opting in to the property tax exemption for nuclear facilities under Real Property Tax Law 485 which allows communities that have opted in to negotiate PILOTs for nuclear projects in place of property taxes, similar to RPTL 487 with renewable projects.
Responses to the RFIs are due December 11, 2025.
Harter Secrest & Emery provides comprehensive Energy legal services to clients throughout New York State, particularly for municipalities in Upstate New York. The firm’s attorneys assist clients in negotiating leases to energy companies, navigating the Articles 7 and 8 transmission and large-scale renewable siting process, and negotiating agreements with energy companies in connection with such projects. Recipients of a high-level ranking from Chambers USA for Environmental law, Harter Secrest & Emery attorneys have extensive experience helping clients strategically navigate the evolving energy-related legal landscape so they can capitalize on opportunities. For more information, visit www.hselaw.com.