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.