Now Towns Can Tax to Bury Lines

Gov. Andrew M. Cuomo has signed state legislation that will allow the Town of East Hampton to create tax districts to pay for the underground installation of public utility lines. 

Sponsored by Senator Kenneth P. LaValle and Assemblyman Fred W. Thiele Jr., the legislation was the result of the installation by PSEG-Long Island of an aboveground, high-voltage electric transmission line along a six-mile route through East Hampton Village to a substation on Old Stone Highway in Amagansett. Residents along the route and others, concerned about the visual, safety, and health impacts of the overhead lines, had pushed to have them removed and installed underground, but PSEG refused to bear the expense.

The new law would permit the Towns of East Hampton, as well as Southampton, to create “underground utility improvement districts” that could enter into agreements with utility companies, such as PSEG, to place electrical, cable TV, or telephone lines underground or to replace overhead lines with an underground system.

Special tax districts require “yes” votes by those living within them before they can be established. Once established, the towns would collect taxes to pay for the installation.

“We need to protect our energy system, and a great way to do that is by selectively undergrounding our utility infrastructure,” Assemblyman Thiele said in a press release. “New York, in general, needs to build an electric grid that is stronger, more resilient, and smarter. Long Island, and more specifically, the Town of East Hampton, is particularly susceptible to northeasters, tropical storms, and hurricanes,” the release said.

A utility tax district would pave the way for better systems, Senator LaValle said in the press release, while providing “the opportunity to share costs or spread them out over time.”