Greenburgh continues hearing on battery energy storage pilot; experts warn of arbitrage, safety and decommissioning risks

The Town of Greenburgh held a continued public hearing July 22 on a proposed local law to create a pilot program for commercial battery energy storage systems (BESS). The proposal would establish a payment‑in‑lieu‑of‑taxes (PILOT) framework for eligible commercial installations and require case‑by‑case negotiated agreements with the assessor.

Hugh Schwartz, who said he helped author the town’s original energy‑storage law, urged caution and recommended limiting PILOTs to systems paired with renewable generation. "If it's not attached to an alternate energy source like wind or solar, you don't want to give them a tax break," he said, adding that some standalone storage projects primarily perform arbitrage — buying power off‑peak and selling on‑peak — and offer little environmental benefit. Mr. Schwartz also warned that utility‑scale batteries can pose fire risks and require specialized first‑responder training.

Town staff noted that without a local pilot program, state law could leave some systems untaxed; the proposed pilot creates a negotiated payment structure so systems are not automatically tax‑exempt. Planning and legal officials suggested further refinements, including whether the town may legally condition PILOTs on a system being tied to an on‑site renewable generator.

The hearing included questions about existing systems: the planning‑board chair said at least three BESS installations are already operational in the unincorporated town and several others have planning approval. Speakers urged the board to require financial assurances or decommissioning funds to cover end‑of‑life battery disposal and to consider the lifespan and potential environmental impacts of spent battery systems.

No final action was taken; the hearing remains open to gather additional input and legal analysis on how a pilot would interact with existing approvals and state policy.