S T A T E O F N E W Y O R K
________________________________________________________________________
1872--A
2015-2016 Regular Sessions
I N A S S E M B L Y
January 13, 2015
___________
Introduced by M. of A. PAULIN, TITONE, SCHIMEL, RIVERA, OTIS, MOYA,
MARKEY, GOTTFRIED, CRESPO, COLTON, CAHILL, BARRETT, ABINANTI, CROUCH
-- Multi-Sponsored by -- M. of A. BUCHWALD, CERETTO, COOK, MAGEE,
ROBINSON, THIELE -- read once and referred to the Committee on Real
Property Taxation -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to exemption from
taxation for certain energy systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The section heading and subdivisions 2, 3 and 4 of section
2 487 of the real property tax law, as amended by chapter 515 of the laws
3 of 2002, are amended to read as follows:
4 Exemption from taxation for certain [solar or wind energy systems or
5 farm waste] energy systems.
6 2. Real property which includes a solar or wind energy system [or],
7 farm waste energy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL
8 ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND POWER GENERATING
9 EQUIPMENT SYSTEM approved in accordance with the provisions of this
10 section shall be exempt from taxation to the extent of any increase in
11 the value thereof by reason of the inclusion of such solar or wind ener-
12 gy system [or], farm waste energy system, MICRO-HYDROELECTRIC ENERGY
13 SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND
14 POWER GENERATING EQUIPMENT SYSTEM for a period of fifteen years. When a
15 solar or wind energy system or components thereof [or], farm waste ener-
16 gy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTIC GENERAT-
17 ING SYSTEM, OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM
18 also serve as part of the building structure, the increase in value
19 which shall be exempt from taxation shall be equal to the assessed value
20 attributable to such system or components multiplied by the ratio of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04869-03-5
A. 1872--A 2
1 incremental cost of such system or components to the total cost of such
2 system or components.
3 3. The president of the authority shall provide definitions and guide-
4 lines for the eligibility for exemption of the solar and wind energy
5 equipment and systems [and], farm waste energy equipment and systems,
6 MICRO-HYDROELECTRIC EQUIPMENT AND SYSTEMS, FUEL CELL ELECTRIC GENERATING
7 EQUIPMENT AND SYSTEMS, AND MICRO-COMBINED HEAT AND POWER GENERATING
8 EQUIPMENT AND SYSTEMS described in paragraphs (a) [and], (b), (E), (F),
9 (G), (H), (I), (J), (K) AND (L) of subdivision one of this section.
10 4. No solar or wind energy system [or], farm waste energy system,
11 MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
12 OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM shall be
13 entitled to any exemption from taxation under this section unless such
14 system meets the guidelines set by the president of the authority and
15 all other applicable provisions of law.
16 S 2. Subdivision 1 of section 487 of the real property tax law is
17 amended by adding six new paragraphs (g), (h), (i), (j), (k) and (l) to
18 read as follows:
19 (G) "MICRO-HYDROELECTRIC ENERGY EQUIPMENT" MEANS ANY ENERGY STORAGE
20 DEVICE, PENSTOCK, TURBINE, GENERATOR AND OTHER MATERIALS, HARDWARE AND
21 EQUIPMENT NECESSARY TO THE PROCESS BY WHICH THE FLOW OF STREAM OR RIVER
22 WATER OR WATER FROM OTHER WATER BODIES IS (I) CONVERTED INTO ELECTRICAL
23 ENERGY; (II) PROTECTED FROM UNNECESSARY DISSIPATION; AND (III) DISTRIB-
24 UTED. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT
25 WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A
26 BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE
27 EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTAB-
28 LISHED BY LAW.
29 (H) "MICRO-HYDROELECTRIC ENERGY SYSTEM" MEANS AN ARRANGEMENT OR COMBI-
30 NATION OF MICRO-HYDROELECTRIC ENERGY EQUIPMENT DESIGNED TO PROVIDE ELEC-
31 TRICAL ENERGY BY THE USE OF FLOWING WATER. IT DOES NOT INCLUDE PIPES,
32 CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE PART OF THE NORMAL
33 HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING. IT DOES NOT
34 INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT SUCH MATERI-
35 ALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY LAW.
36 (I) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
37 MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL
38 WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
39 IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT
40 SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
41 LAW.
42 (J) "FUEL CELL ELECTRIC GENERATING SYSTEM" MEANS AN ARRANGEMENT OR
43 COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY THROUGH
44 REACTION OF CHEMICALS, INCLUDING BUT NOT LIMITED TO HYDROGEN, OXYGEN,
45 METHANE AND NATURAL GAS.
46 (K) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN
47 INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER-
48 ATION SYSTEM, OWNED, LEASED OR OPERATED BY A RESIDENTIAL CUSTOMER,
49 LOCATED AT SUCH CUSTOMER'S PREMISES, OPERATING ON ANY FUEL AND OF ANY
50 APPLICABLE ENGINE, FUEL CELL OR OTHER TECHNOLOGY WITH A RATED CAPACITY
51 OF AT LEAST ONE KILOWATT AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND
52 ANY THERMAL OUTPUT THAT HAS A DESIGN TOTAL FUEL USE EFFICIENCY IN THE
53 PRODUCTION OF HEAT AND ELECTRICITY OF NOT LESS THAN EIGHTY PERCENT, AND
54 ANNUALLY PRODUCES AT LEAST TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY
55 IN THE FORM OF ELECTRICITY THAT MAY WORK IN COMBINATION WITH SUPPLE-
56 MENTAL OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
A. 1872--A 3
1 INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND
2 INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
3 ATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND
4 DISTRIBUTION FACILITIES. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION
5 OR OTHER EQUIPMENT WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR
6 INSULATION SYSTEM OF A BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING
7 OR INSULATION TO THE EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFI-
8 CIENCY STANDARDS ESTABLISHED BY LAW.
9 (L) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM" MEANS
10 AN ARRANGEMENT OR COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELEC-
11 TRICAL ENERGY AND HEAT FOR A RESIDENTIAL CUSTOMER ON SUCH CUSTOMER'S
12 PREMISES.
13 S 3. Subdivision 5 of section 487 of the real property tax law, as
14 amended by chapter 344 of the laws of 2014, is amended to read as
15 follows:
16 5. The exemption granted pursuant to this section shall only be appli-
17 cable to (A) solar or wind energy systems or farm waste energy systems
18 which are [(a)] (I) existing or constructed prior to July first, nine-
19 teen hundred eighty-eight or [(b)] (II) constructed subsequent to Janu-
20 ary first, nineteen hundred ninety-one and prior to January first, two
21 thousand twenty-five, AND (B) MICRO-HYDROELECTRIC ENERGY SYSTEMS, FUEL
22 CELL ELECTRIC GENERATING SYSTEMS, OR MICRO-COMBINED HEAT AND POWER
23 GENERATING EQUIPMENT SYSTEMS WHICH ARE CONSTRUCTED SUBSEQUENT TO JANUARY
24 FIRST, TWO THOUSAND SIXTEEN AND PRIOR TO JANUARY FIRST, TWO THOUSAND
25 TWENTY-FIVE.
26 S 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
27 ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
28 read as follows:
29 (a) Notwithstanding the provisions of subdivision two of this section,
30 a county, city, town or village may by local law or a school district,
31 other than a school district to which article fifty-two of the education
32 law applies, may by resolution provide EITHER (I) that no exemption
33 under this section shall be applicable within its jurisdiction with
34 respect to any solar or wind energy system or farm waste energy system
35 which began construction subsequent to January first, nineteen hundred
36 ninety-one or the effective date of such local law, ordinance or resol-
37 ution, whichever is later, AND/OR (II) THAT NO EXEMPTION UNDER THIS
38 SECTION SHALL BE APPLICABLE WITHIN ITS JURISDICTION WITH RESPECT TO ANY
39 MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
40 OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM CONSTRUCTED
41 SUBSEQUENT TO JANUARY FIRST, TWO THOUSAND SIXTEEN OR THE EFFECTIVE DATE
42 OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION, WHICHEVER IS LATER. A copy
43 of any such local law or resolution shall be filed with the commissioner
44 and with the president of the authority.
45 S 5. This act shall take effect January 1, 2016.