S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1872
                              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, CAMARA, CERETTO, COOK,
         MAGEE, ROBINSON, THIELE -- read once and referred to the Committee  on
         Real Property Taxation
       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
   21  incremental cost of such system or components to the total cost of  such
   22  system or components.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04869-02-5
       A. 1872                             2
    1    3. The president of the authority shall provide definitions and guide-
    2  lines  for  the  eligibility  for exemption of the solar and wind energy
    3  equipment and systems [and], farm waste energy  equipment  and  systems,
    4  MICRO-HYDROELECTRIC EQUIPMENT AND SYSTEMS, FUEL CELL ELECTRIC GENERATING
    5  EQUIPMENT  AND  SYSTEMS,  AND  MICRO-COMBINED  HEAT AND POWER GENERATING
    6  EQUIPMENT AND SYSTEMS described in paragraphs (a) [and], (b), (E),  (F),
    7  (G), (H), (I), (J), (K) AND (L) of subdivision one of this section.
    8    4.  No  solar  or  wind  energy system [or], farm waste energy system,
    9  MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
   10  OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT  SYSTEM  shall  be
   11  entitled  to  any exemption from taxation under this section unless such
   12  system meets the guidelines set by the president of  the  authority  and
   13  all other applicable provisions of law.
   14    S  2.  Subdivision  1  of  section 487 of the real property tax law is
   15  amended by adding six new paragraphs (g), (h), (i), (j), (k) and (l)  to
   16  read as follows:
   17    (G)  "MICRO-HYDROELECTRIC  ENERGY  EQUIPMENT" MEANS ANY ENERGY STORAGE
   18  DEVICE, PENSTOCK, TURBINE, GENERATOR AND OTHER MATERIALS,  HARDWARE  AND
   19  EQUIPMENT  NECESSARY TO THE PROCESS BY WHICH THE FLOW OF STREAM OR RIVER
   20  WATER OR WATER FROM OTHER WATER BODIES IS (I) CONVERTED INTO  ELECTRICAL
   21  ENERGY;  (II) PROTECTED FROM UNNECESSARY DISSIPATION; AND (III) DISTRIB-
   22  UTED. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT
   23  WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A
   24  BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING  OR  INSULATION  TO  THE
   25  EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTAB-
   26  LISHED BY LAW.
   27    (H) "MICRO-HYDROELECTRIC ENERGY SYSTEM" MEANS AN ARRANGEMENT OR COMBI-
   28  NATION OF MICRO-HYDROELECTRIC ENERGY EQUIPMENT DESIGNED TO PROVIDE ELEC-
   29  TRICAL  ENERGY  BY  THE USE OF FLOWING WATER. IT DOES NOT INCLUDE PIPES,
   30  CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE  PART  OF  THE  NORMAL
   31  HEATING,  COOLING,  OR  INSULATION  SYSTEM  OF  A  BUILDING. IT DOES NOT
   32  INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT SUCH  MATERI-
   33  ALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY LAW.
   34    (I)  "FUEL  CELL  ELECTRIC  GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
   35  MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL  CELL
   36  WITH  A COMBINED RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
   37  IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE  EXTENT  THAT
   38  SUCH  MATERIALS  EXCEED  THE  ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
   39  LAW.
   40    (J) "FUEL CELL ELECTRIC GENERATING SYSTEM"  MEANS  AN  ARRANGEMENT  OR
   41  COMBINATION  OF  EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY THROUGH
   42  REACTION OF CHEMICALS, INCLUDING BUT NOT LIMITED  TO  HYDROGEN,  OXYGEN,
   43  METHANE AND NATURAL GAS.
   44    (K)  "MICRO-COMBINED  HEAT  AND  POWER  GENERATING EQUIPMENT" MEANS AN
   45  INTEGRATED, COGENERATING BUILDING HEATING AND  ELECTRICAL  POWER  GENER-
   46  ATION  SYSTEM,  OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL
   47  CELL OR OTHER TECHNOLOGY WITH A RATED CAPACITY OF AT LEAST ONE  KILOWATT
   48  AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT THAT HAS
   49  A  DESIGN  TOTAL FUEL USE EFFICIENCY IN THE PRODUCTION OF HEAT AND ELEC-
   50  TRICITY OF NOT LESS THAN EIGHTY PERCENT, AND ANNUALLY PRODUCES AT  LEAST
   51  TWO  THOUSAND KILOWATT HOURS OF USEFUL ENERGY IN THE FORM OF ELECTRICITY
   52  THAT MAY WORK IN COMBINATION WITH SUPPLEMENTAL OR PARALLEL  CONVENTIONAL
   53  HEATING SYSTEMS, THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORD-
   54  ANCE   WITH  APPLICABLE  GOVERNMENT  AND  INDUSTRY  STANDARDS,  THAT  IS
   55  CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED  IN  CONJUNCTION  WITH  AN
   56  ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES. IT DOES
       A. 1872                             3
    1  NOT  INCLUDE  PIPES,  CONTROLS,  INSULATION OR OTHER EQUIPMENT WHICH ARE
    2  PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING.
    3  IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE  EXTENT  THAT
    4  SUCH  MATERIALS  EXCEED  THE  ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
    5  LAW.
    6    (L) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM"  MEANS
    7  AN  ARRANGEMENT  OR  COMBINATION  OF EQUIPMENT DESIGNED TO PRODUCE ELEC-
    8  TRICAL ENERGY AND HEAT FOR A BUILDING OR ASSOCIATED BUILDINGS.
    9    S 3. Subdivision 5 of section 487 of the real  property  tax  law,  as
   10  amended  by  chapter  344  of  the  laws  of 2014, is amended to read as
   11  follows:
   12    5. The exemption granted pursuant to this section shall only be appli-
   13  cable to (A) solar or wind energy systems or farm waste  energy  systems
   14  which  are  [(a)] (I) existing or constructed prior to July first, nine-
   15  teen hundred eighty-eight or [(b)] (II) constructed subsequent to  Janu-
   16  ary  first,  nineteen hundred ninety-one and prior to January first, two
   17  thousand twenty-five, AND (B) MICRO-HYDROELECTRIC ENERGY  SYSTEMS,  FUEL
   18  CELL  ELECTRIC  GENERATING  SYSTEMS,  OR  MICRO-COMBINED  HEAT AND POWER
   19  GENERATING EQUIPMENT SYSTEMS WHICH ARE CONSTRUCTED SUBSEQUENT TO JANUARY
   20  FIRST, TWO THOUSAND SIXTEEN AND PRIOR TO  JANUARY  FIRST,  TWO  THOUSAND
   21  TWENTY-FIVE.
   22    S 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
   23  ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
   24  read as follows:
   25    (a) Notwithstanding the provisions of subdivision two of this section,
   26  a  county,  city, town or village may by local law or a school district,
   27  other than a school district to which article fifty-two of the education
   28  law applies, may by resolution provide  EITHER  (I)  that  no  exemption
   29  under  this  section  shall  be  applicable within its jurisdiction with
   30  respect to any solar or wind energy system or farm waste  energy  system
   31  which  began  construction subsequent to January first, nineteen hundred
   32  ninety-one or the effective date of such local law, ordinance or  resol-
   33  ution,  whichever  is  later,  AND/OR  (II) THAT NO EXEMPTION UNDER THIS
   34  SECTION SHALL BE APPLICABLE WITHIN ITS JURISDICTION WITH RESPECT TO  ANY
   35  MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
   36  OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM CONSTRUCTED
   37  SUBSEQUENT  TO JANUARY FIRST, TWO THOUSAND SIXTEEN OR THE EFFECTIVE DATE
   38  OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION, WHICHEVER IS LATER.  A  copy
   39  of any such local law or resolution shall be filed with the commissioner
   40  and with the president of the authority.
   41    S 5. This act shall take effect January 1, 2016.