New York State Assemblyman Fred W. Thiele, Jr. and State Senator Kenneth P. LaValle have sponsored legislation that would permit New York State towns to create “Underground Utility Improvement Districts”. This legislation would permit towns to create districts that could enter into agreements with public utility companies to construct underground utility facilities or convert existing above ground utilities to underground. Such facilities would include electric transmission and distribution lines, cable television lines, and telephone lines.

Thiele stated, “The current dispute in East Hampton over electric transmission lines is only the tip of the iceberg in a nationwide debate that relates to climate change and public utility infrastructure. The impacts of Superstorm Sandy and Tropical Storm Irene in the last few years illustrate that New York State must be part of that debate. New York needs to build an electric grid that is stronger, more resilient, and smarter. On Long Island, which is particularly susceptible to nor’easters, tropical storms, and hurricanes, the selective undergrounding of utility infrastructure must be part of that debate. Other states, including California, Florida, North Carolina, Hawaii, and Oregon, have been at the forefront of new policies to underground utility infrastructure. In New York, the only thing we are burying is our heads in the sand.”

Senator Ken LaValle said, “This legislation will give towns and utilities another tool to safeguard their electrical infrastructure from future storm damage at a cost shared by the utility and the local community”

East Hampton Town Supervisor Larry Cantwell said, “The Town of East Hampton and its residents have invested millions of dollars to preserve open space and residential neighborhoods. The economic future of our community depends on its natural and man- made beauty. Large overhead transmission line projects threaten this balance and private utility companies and New York State must support burying as the first alternative, not the last.”

“The Village of East Hampton thanks Assemblyman Thiele and Senator LaValle for sponsoring this legislation,” said East Hampton Village Mayor Paul Rickenbach. “It is important that not just for the current situation we are going through with the utility, but that a comprehensive approach is developed and adhered to concerning any future projects. This bill has the support of the Village.”

Under the new legislation, any town in New York State would have the authority to create an “underground utility improvement district”, utilizing the same process and procedures that currently exist for the creation of other special districts such as water or sewer districts. The creation of a district would be subject to a permissive referendum.

After an underground utility improvement district has been established, the town board may enter into a contract with a public utility company, municipality, or public authority in order to construct underground new public utility facilities or convert existing overhead public utility facilities to underground facilities. "Public utility facilities" shall include the transmission and distribution of electrical energy, telephone lines, and cable television lines, including poles, wires, and all associated structures.

In addition, like California’s Rule 20 Program, the legislation would also permit towns on Long Island that have created a special district to petition LIPA to contribute at least fifty percent (50%) of the net incremental cost of improvements for the district. "Net incremental cost” would be the difference between the total cost of constructing public utility facilities underground and the total cost of constructing such facilities overhead. Any state or federal aid to construct such public utility facilities would be subtracted from net incremental cost.

LIPA and the town would jointly determine whether or not funding by the authority is in the general public interest. In determining general public interest, the town and LIPA would be required to consider whether the project (a) would avoid or eliminate an unusually heavy concentration of overhead electric public utility facilities, or (b) whether the street or roadway is extensively used by the general public and carries a heavy volume of pedestrian or vehicle traffic, or (c) the street or roadway passes through an area which is of general public interest based upon open space resources, farmland preservation resources, historic preservation resources, park and recreation resources, or scenic or aesthetic resources. If the town and the authority jointly determine that any of the three standards are met the general public interest test would be satisfied and LIPA would be required to contribute at least 50% of the cost of the project.