A3361

An Act requiring decommissioned nuclear energy facility to make community service payments and supplementing chapter 4 of Title 54 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares:

a. The decommissioning of a nuclear power plant in which spent nuclear fuel has not been removed will have the effect of removing the power plant from the property tax rolls of the municipality in which it is located, because the presence of that radioactive material makes the facility unusable, so it has no value for property tax purposes;

b. As the United States government has not determined where or how spent nuclear fuel should be disposed of, the spent nuclear fuel will remain in a decommissioned facility for the foreseeable future;

c. The loss of any large property tax ratable generally has an negative impact on the property tax levy, which funds local government entities and school districts, but a decommissioned nuclear power plant containing spent nuclear fuel that cannot be removed from the facility, and therefore cannot be redeveloped, creates a unique, long-term negative impact on the property tax levy, and must be addressed by the Legislature; and

d. Fundamental fairness toward all other property taxpayers in the municipality requires the owner of a decommissioned nuclear power plant to continue to financially support the municipality and the school district serving the children of municipal residents through the payment of a community service payment in lieu of property taxes, until such time as the spent nuclear fuel can be safely removed and the property returned to the municipal property tax rolls.

2. a. The owner of a decommissioned nuclear power plant in which spent nuclear fuel has not been removed, and which has no assessed value for property tax purposes, shall, no later than August 1 of each year, make a community service payment in lieu of property taxes to the municipality in which the decommissioned plant is located. The first community service payment shall be due August 1 of the year following the last full tax year in which the plant was operational, and a payment shall be due every August 1 thereafter, as long as the spent nuclear fuel remains inside of the decommissioned plant. In the case of a plant that was decommissioned more than one year prior to the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the first community service payment shall be due on August 1 immediately following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill),

b. The amount of the first annual payment shall be equal to the amount of property taxes for municipal and school district purposes paid by the owner of the decommissioned nuclear power plant in the last full tax year immediately prior to the plant’s decommissioning. Thereafter, in each year, the payment shall increase by 2 percent over the payment made in the previous year.

c. The owner shall make the annual community service payment to the municipality in which the decommissioned plant is located. The municipality shall retain the portion of the payment representing the municipal purposes property taxes, and shall forward to the school district the portion of the payment representing the school district purposes property taxes, within five business days of receiving the payment.

d. Once the spent nuclear fuel has been removed from the decommissioned plant, the decommissioned plant shall again be subject to taxation as real property, and the assessor shall value the property pursuant to the requirements of Title 54 of the Revised Statutes.

3. The Director of the Division of Taxation in the Department of the Treasury, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the provisions of this act within 90 days of its enactment.

4. This act shall take effect immediately.

STATEMENT

This bill would require the owner of a decommissioned nuclear power plant in which spent nuclear fuel has not been removed, no later than August 1 of each year, to make a community service payment in lieu of property taxes to the municipality in which the plant is located. The first community service payment would be due August 1 of the year following the last full tax year in which the plant was operational, and a payment would then be due every August 1 thereafter, as long as the spent nuclear fuel remains inside of the plant. In the case of a plant that was decommissioned more than one year prior to the enactment of the bill, the first community service payment would be due on August 1 immediately following the enactment of the bill,

The amount of the first annual payment would be equal to the amount of property taxes for municipal and school district purposes paid by the owner of the decommissioned nuclear power plant in the last full tax year immediately prior to the plant’s decommissioning. Thereafter, in each year, the required payment would increase by 2 percent over the payment made in the previous year.

The owner would make the annual community service payment to the municipality, which would retain its share of the payment. The municipality would then forward to the school district the portion of the payment representing the school district purposes property taxes, within five business days of receiving the payment.

The bill would require that once the spent nuclear fuel has been removed from the plant, the plant would again be subject to taxation as real property.