SCHUMER PROTECTS FUNDING FOR LIFELINE “NUCLEAR CLOSURE COMMUNITIES” PROGRAM TO AID HUDSON VALLEY COMMUNITIES FACING MAJOR ECONOMIC LOSS FROM SHUTDOWN OF INDIAN POINT – AND DELIVERS NEW FED $$$ FOR WESTCHESTER TO LAUNCH ECONOMIC RECOVERY PLAN TO SPUR NEW INVESTMENT, CREATE GOOD-PAYING JOBS, AND ENERGIZE THE HUDSON VALLEY ECONOMY

With Indian Point's 2021 Shutdown, Westchester Suddenly Lost Over $1 Billion Of Economic Output, $32 Million Of Tax Revenue, And 1,000+ Jobs, Creating A Major Economic Hit After 50 Years Of Plant Operations

Schumer-Championed NCC Program Aimed At Rebuilding Indian Point & Other Closure Communities Was Almost Significantly Cut Last Year – But Schumer Successfully Saved It; Delivering A New Cash Infusion Of $16.5M Nationwide—With Fed $$$ Now Already Flowing To Westchester County To Boost The Hudson Valley’s Economic Recovery

Schumer: New Fed Investment On The Way To Lift Up Indian Point Communities Struggling After Plant Closure

Continuing his long-time advocacy to boost the economy of Lower Hudson Valley communities surrounding the Indian Point Energy Center in Buchanan, New York, U.S. Senate Majority Leader Charles E. Schumer today announced two major victories to bolster critical federal assistance to the areas impacted by the closure of the nuclear power plant.

First, Schumer announced he has successfully secured $344,000 for Westchester County through the Economic Development Administration’s (EDA) Assistance to Nuclear Closure Communities (NCC) program, a much-needed down-payment that will be used to develop a comprehensive regional economic adjustment strategy addressing Indian Point’s closure. Second, the senator revealed that, after launching his plan last year, he successfully continued funding for the NCC program in the Fiscal Year 2023 budget, boosting the program with $16.5 million in funding to assist nuclear closure communities, like those surrounding Indian Point.

“Indian Point’s closure hit hard the communities nearby with a loss of jobs and tax revenue. That’s why I fought tooth and nail to continue funding in this year’s budget for this critical federal program that funds economic revitalization in nuclear closure communities like those near Indian Point,” said Senator Schumer. “I am proud to announce the funds are already flowing to Westchester, delivering an over $340,000 down-payment to create a comprehensive regional economic adjustment strategy to fully address Indian Point’s closure, laying the foundation for future economic revitalization efforts in the Lower Hudson Valley.”

"With the closure of Indian Point, there were repercussions that our office of Economic Development has been working to mitigate. Thank you to Senator Schumer for acknowledging the impact of this closure and allotting these funds that will help get us over this hurdle, while leading us towards a stronger economic future,” said Westchester County Executive George Latimer.

“We’re thrilled to receive this important grant that will be used to fortify and expand the life sciences sector in Westchester and strategically put us on a laser-focused path towards a more resilient and self-reliant economy. These funds allow us to create a plan to support building equity among underserved populations, create jobs, increase local manufacturing, reduce supply chain issues, increase business retention, and provide the technologically advanced workspaces and workforce training that will keep our economy innovative and thriving," said Westchester County Office of Economic Development Director Bridget Gibbons.

Schumer explained that the $344,000 federal investment he just delivered through the NCC program will help Westchester County develop a comprehensive economic adjustment strategy to address the closure of the Indian Point.  The effort will include research, stakeholder engagement, and developing plans for new projects that further support the further expansion of Westchester's growing biosciences sector. Specifically, Schumer said that the initiative focuses on bolstering workforce development and the talent pipeline, site development, financing, and expanding supply chains. The senator said that Westchester makes up 20% of all bioscience employment in New York, and this strategy aims to further strengthen this growing industry while working to offset economic losses caused by Indian Point's closure. Once complete, the NCC-sponsored economic adjustment strategy will provide actionable items for Westchester County's Office of Economic Development so they can implement programs and projects that increase employment opportunities, spur private investment, and rebuild the regional economy.

In addition, Schumer also said that, after fighting for months, he successfully kept the NCC program from being cut in this year’s just-passed federal budget and was able to continue funding the program at $16.5 million. The NCC program provides grants to communities, like Indian Point, impacted by a nuclear power plant closure. This federal assistance can be used for early-stage planning activities for economic recovery, public works and construction investment, and economic diversification initiatives. In stressing the importance of the NCC program's continuation, the senator said that the communities nearby Indian Point relied on the operating plant as an economic anchor for nearly 50 years as one of Westchester’s largest taxpayers, with the facility bringing in roughly $32 million in annual property tax revenue for the Village of Buchanan, the Town of Cortlandt, Hendrick Hudson School District, and Westchester County.  

Generating roughly $1.3 billion of economic output for the Hudson Valley and $1.6 billion more for New York, the senator said that Indian Point was also one of Westchester's largest and highest-paying employers with an annual payroll of roughly $140 million providing for over 1,000 direct jobs and supporting thousands more indirect jobs across various sectors.  In fighting to secure additional funding for the NCC program, the senator said that these billion-dollar impacts will require long-term, strategic solutions to offset this devastating and sudden economic loss to the region. Importantly, Schumer said that without a continued and dedicated federal funding source for economic revitalization in closure communities, future funding for Westchester County to fully implement its Schumer-secured $340,000 comprehensive regional economic adjustment strategy may have been jeopardized, stalling important progress in the region's economic revitalization.

With this in mind, after learning that earlier versions of the bill cut funding for the nuclear communities program, Schumer wrote a letter to House and Senate Appropriators explaining the importance of the program to Westchester and the Hudson Valley. Now, with the program continuing to receive funding, Indian Point communities can continue working with the EDA to receive federal investment that supports the region's economic recovery. Additionally, Senator Schumer is actively working to permanently authorize the NCC program as part of the reauthorization of the Economic Development Administration to make sure that Indian Point, and other communities impacted by nuclear plant closures across the country, have continued access to this critical program through long-term federal investment. 

Schumer has a long history of fighting for the creation and preservation of the NCC program and bringing those resources back to the Hudson Valley. Schumer, working with former Congresswoman and House Appropriations Committee Chair, Nita Lowey, helped create the EDA’s NCC program in the Fiscal Year 2020 appropriations bill. In 2020, Schumer and Lowey successfully secured a $3.2 million EDA grantfor the Town of Cortlandt through the NCC program to build its tax base through infrastructure upgrades to a town-owned property for business attraction. In 2021, Schumer hosted a workshop with EDA officials who manage the NCC program and local government stakeholders from Westchester County, the Town of Cortlandt, and the Village of Buchanan to expand awareness of how best to use the NCC program for economic recovery. Schumer worked tirelessly with Westchester County to connect them with the EDA, making today's announcement possible.

A copy of Schumer’s original letter of support on behalf of Westchester for the NCC program grant appears below:

Director Cruz-Carnall,

I write today in strong support of the application submitted by Westchester County to develop a comprehensive economic adjustment strategy to address the closure of Indian Point Energy Center (IPEC) through the Economic Development Administration’s (EDA) Nuclear Closure Communities (NCC) Program. The closure of IPEC, located in the Village of Buchanan, New York, will result in the loss of over 1,100 jobs, approximately $32,000,000 in tax revenue, and 1.3 billion of economic output for the Hudson Valley region. I strongly urge the EDA to help the region recover from these devastating economic impacts by fully funding Westchester’s $344,000 request.

In January 2017, Entergy, the owner of IPEC, announced that it would close its operating nuclear plants II and III in the Village of Buchanan, New York, on April 20, 2020 (IP2) and April 30, 2021 (IP3) after almost 50 years of operation. This announcement was shocking to the communities surrounding the plant, who were given no prior notification and had just signed another ten year PILOT agreement with Entergy for tax revenue stabilization. The communities quickly formed a local task force with over 20 members, including elected officials, community stakeholders, union and trade representatives, chambers of commerce, and other local leaders to fully understand the challenges ahead.

The sudden, unanticipated, economic challenges quickly became apparent. The communities nearby IPEC relied on the operating plant as an economic anchor for nearly 50 years as one of Westchester’s largest taxpayers, with the facility bringing in roughly $32 million in annual property tax revenue for the Village of Buchanan, the Town of Cortlandt, Hendrick Hudson School District, and Westchester County.  A study in 2014 by the Nuclear Energy Institute titled Economic Impacts of the Indian Point Energy Center found that IPEC had an annual economic output of $1.4 billion for the five-county area of Bronx, Orange, Putnam, Rockland, and Westchester and $1.6 billion statewide.  With the closure, the Village of Buchanan will lose 50% of its budget, a total loss of $4 million by 2025; Westchester County will lose 1% in property taxes; and the Town of Cortlandt will lose 2% of its budget. Moreover, IPEC employed over 1,000 people in permanent jobs as one of the largest and highest-paying employers in the region with an annual payroll of $140 million. These jobs stimulated 9,700 more jobs in other sectors in surrounding counties, New York, and across the nation.  IPEC’s 2021 closure also resulted in the loss of roughly 650 jobs in state and local government. 

Fortunately, Westchester’s flourishing biosciences sector presents one bright spot to help recoup these losses. Westchester accounts for 20% of all bioscience employment in New York and is the fifth largest biosciences cluster in the nation.  As an indicator of growth, patents issued in this sector have more than doubled from 2000 to 2015. This sector is well-positioned to expand, given the county’s highly educated workforce, desirable quality of life, and physical location within the New York metropolitan region. While Westchester is home to innovative, leading companies in the biosciences industry, there are currently 17,594 open positions, including 3,000 in scientific jobs. While biosciences growth is very promising, Westchester’s Office of Economic Development has identified significant workforce gaps in the industry.

Westchester is now requesting $344,000 through the NCC program to develop a comprehensive economic adjustment strategy to address IPEC’s closure by bolstering its biosciences cluster. Specifically, the proposed initiative focuses on building workforce development and the talent pipeline, site development, financing, and expanding supply chains to further strengthen this growing industry while working to offset economic losses caused by IPEC's closure. Once complete, the NCC-sponsored economic adjustment strategy will provide actionable items for Westchester's Office of Economic Development so they can implement programs and projects that increase employment opportunities, spur private investment, and rebuild the regional economy.

As you can see, EDA investment in Westchester’s proposed comprehensive economic adjustment strategy will help to create jobs, assist taxing jurisdictions, and identify sites for further development so IPEC communities can attract future projects to the area as they cope with the economic burdens of IPEC’s closure. I know that EDA has a rich history of working with communities facing structural economic adjustments, providing critical assistance to help areas recover. Westchester not only faces such a situation but also has a well-developed plan to begin to recover. I strongly urge you to invest in Westchester’s regional economic adjustment strategy to help the county and others expand their efforts to get back on their feet.

Thank you for your time and attention to this matter, if you have questions please do not hesitate to contact my staff.

Sincerely,

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