S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 3465                                                  A. 4961
                              2015-2016 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                   February 10, 2015
                                      ___________
       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed, and when printed to be committed to the Committee on Local Govern-
         ment
       IN ASSEMBLY -- Introduced by M. of A. THIELE, GOTTFRIED -- read once and
         referred to the Committee on Real Property Taxation
       AN ACT to amend the real property tax law, in relation to increasing the
         value  of  the  exemption for certain renewable energy systems or farm
         waste energy systems
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  487  of the real property tax law, as amended by
    2  chapter 515 of the laws of 2002,  paragraph  (e)  of  subdivision  1  as
    3  amended  by  chapter  272  of the laws of 2013, subdivisions 5 and 8 and
    4  paragraph (a) of subdivision 9 as amended by chapter 344 of the laws  of
    5  2014,  subdivision  6 as further amended by subdivision (b) of section 1
    6  of part W of chapter 56 of the laws of 2010 and subdivision 9  as  added
    7  by chapter 608 of the laws of 2002, is amended to read as follows:
    8    S  487.  Exemption from taxation for certain [solar or wind] RENEWABLE
    9  energy systems or farm waste energy systems. 1. As used in this section:
   10    (a) "[Solar or wind] RENEWABLE  energy  equipment"  means  collectors,
   11  controls, energy storage devices, heat pumps and pumps, heat exchangers,
   12  windmills,  and  other materials, hardware or equipment necessary to the
   13  process by which solar radiation,  GEOTHERMAL  ENERGY  or  wind  is  (i)
   14  collected,  (ii)  converted into another form of energy such as thermal,
   15  electrical, mechanical or chemical, (iii) stored,  (iv)  protected  from
   16  unnecessary  dissipation and (v) distributed. It does not include pipes,
   17  controls, insulation or other equipment which are  part  of  the  normal
   18  heating,  cooling,  or  insulation system of a building. It does include
   19  insulated glazing or insulation to the extent that such materials exceed
   20  the energy efficiency standards required by law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08434-02-5
       S. 3465                             2                            A. 4961
    1    (b) "[Solar or wind] RENEWABLE energy system" means an arrangement  or
    2  combination  of solar or wind energy equipment designed to provide heat-
    3  ing, cooling, hot water, or mechanical, chemical, or  electrical  energy
    4  by  the  collection  of  solar, GEOTHERMAL ENERGY or wind energy and its
    5  conversion, storage, protection and distribution.
    6    (c)  "Authority" means the New York state energy research and develop-
    7  ment authority.
    8    (d) ["Incremental cost" means the increased cost of a  solar  or  wind
    9  energy  system  or  farm  waste energy system or component thereof which
   10  also serves as part of the building structure, above  that  for  similar
   11  conventional  construction,  which  enables  its  use as a solar or wind
   12  energy or farm waste energy system or component.
   13    (e)] "Farm waste electric generating equipment" means  equipment  that
   14  generates   electric  energy  from  biogas  produced  by  the  anaerobic
   15  digestion of agricultural waste, such as livestock manure, farming waste
   16  and food processing wastes with a rated capacity of not  more  than  one
   17  thousand  kilowatts  that is (i) manufactured, installed and operated in
   18  accordance with  applicable  government  and  industry  standards,  (ii)
   19  connected  to  the  electric  system and operated in conjunction with an
   20  electric corporation's transmission and distribution  facilities,  (iii)
   21  operated in compliance with the provisions of section sixty-six-j of the
   22  public  service  law,  (iv)  fueled at a minimum of ninety percent on an
   23  annual basis by biogas produced from the anaerobic digestion of agricul-
   24  tural waste such as livestock manure materials, crop residues  and  food
   25  processing  wastes,  and  (v)  fueled  by  biogas generated by anaerobic
   26  digestion with at least fifty percent by weight of its  feedstock  being
   27  livestock manure materials on an annual basis.
   28    [(f)]  (E) "Farm waste energy system" means an arrangement or combina-
   29  tion of farm waste electric generating  equipment  or  other  materials,
   30  hardware  or  equipment  necessary  to the process by which agricultural
   31  waste biogas is produced, collected, stored, cleaned, and converted into
   32  forms of energy such as thermal, electrical, mechanical or chemical  and
   33  by  which  the  biogas  and converted energy are distributed on-site. It
   34  does not include pipes, controls, insulation or  other  equipment  which
   35  are part of the normal heating, cooling or insulation system of a build-
   36  ing.
   37    2.  Real  property  which  includes a [solar or wind] RENEWABLE energy
   38  system or farm waste energy  system  approved  in  accordance  with  the
   39  provisions  of  this section shall be exempt from taxation to the extent
   40  of any increase in the value thereof by reason of the inclusion of  such
   41  [solar  or wind] RENEWABLE energy system or farm waste energy system for
   42  a period of fifteen years.   When a [solar  or  wind]  RENEWABLE  energy
   43  system  or  components thereof or farm waste energy system also serve as
   44  part of the building structure, the [increase in value which] TOTAL COST
   45  OF THE SYSTEM shall be exempt from  taxation  [shall  be  equal  to  the
   46  assessed  value  attributable to such system or components multiplied by
   47  the ratio of the incremental cost of such system or  components  to  the
   48  total  cost  of such system or components]. THE EXEMPTION SHALL BE EQUAL
   49  TO THE TOTAL COST OF THE SYSTEM. SUCH EXEMPTION SHALL BE SUBTRACTED FROM
   50  THE TOTAL ASSESSED VALUE OF THE REAL PROPERTY.  THE TOTAL  EXEMPTION  IN
   51  NO CASE SHALL EXCEED FIFTY THOUSAND DOLLARS. WHERE THE MUNICIPALITY DOES
   52  NOT  TAX AT FULL VALUE, SUCH EXEMPTION SHALL BE PRO-RATED BASED UPON THE
   53  APPLICABLE EQUALIZATION RATE.
   54    3. The president of the authority shall provide definitions and guide-
   55  lines for the eligibility for exemption of the [solar and wind]  RENEWA-
   56  BLE  energy  equipment  and  systems and farm waste energy equipment and
       S. 3465                             3                            A. 4961
    1  systems described in paragraphs (a) and (b) of subdivision one  of  this
    2  section.
    3    4.  No  [solar  or  wind] RENEWABLE energy system or farm waste energy
    4  system shall be entitled to  any  exemption  from  taxation  under  this
    5  section  unless such system meets the guidelines set by the president of
    6  the authority and all other applicable provisions of law.
    7    5. The exemption granted pursuant to this section shall only be appli-
    8  cable to [solar or wind] RENEWABLE energy systems or farm  waste  energy
    9  systems which are (a) existing or constructed prior to July first, nine-
   10  teen  hundred  eighty-eight  or  (b)  constructed  subsequent to January
   11  first, nineteen hundred ninety-one and prior to January first, two thou-
   12  sand twenty-five.
   13    6. Such exemption shall be granted only upon application by the  owner
   14  of  the  real  property  on  a form prescribed and made available by the
   15  commissioner in cooperation with  the  authority.  The  applicant  shall
   16  furnish such information as the commissioner shall require. The applica-
   17  tion  shall  be filed with the assessor of the appropriate county, city,
   18  town or village on or before the taxable status  date  of  such  county,
   19  city,  town  or  village. A copy of such application shall be filed with
   20  the authority.
   21    7. If the assessor is satisfied that the applicant is entitled  to  an
   22  exemption pursuant to this section, he or she shall approve the applica-
   23  tion  and  enter  the  taxable assessed value of the parcel for which an
   24  exemption has been granted pursuant to this section  on  the  assessment
   25  roll  with  the  taxable  property,  with the amount of the exemption as
   26  computed pursuant to subdivision two  of  this  section  in  a  separate
   27  column. In the event that real property granted an exemption pursuant to
   28  this  section  ceases  to  be  used primarily for eligible purposes, the
   29  exemption granted pursuant to this section shall cease.
   30    8. (a) Notwithstanding the  provisions  of  subdivision  two  of  this
   31  section,  a  county,  city, town or village may by local law or a school
   32  district, other than a school district to which article fifty-two of the
   33  education law applies, may by resolution provide that no exemption under
   34  this section shall be applicable within its jurisdiction with respect to
   35  any [solar or wind] RENEWABLE energy system or farm waste energy  system
   36  which  began  construction subsequent to January first, nineteen hundred
   37  ninety-one or the effective date of such local law, ordinance or  resol-
   38  ution,  whichever  is  later. A copy of any such local law or resolution
   39  shall be filed with the commissioner  and  with  the  president  of  the
   40  authority.
   41    (b)  Construction  of  a  [solar or wind] RENEWABLE energy system or a
   42  farm waste energy system shall be deemed to have  begun  upon  the  full
   43  execution  of  a  contract  or interconnection agreement with a utility;
   44  provided however, that if such  contract  or  interconnection  agreement
   45  requires a deposit to be made, then construction shall be deemed to have
   46  begun  when  the contract or interconnection agreement is fully executed
   47  and the deposit is made. The owner or developer of such a  system  shall
   48  provide  written  notification  to the appropriate local jurisdiction or
   49  jurisdictions upon execution of  the  contract  or  the  interconnection
   50  agreement.
   51    9.  (a)  A  county,  city,  town, village or school district, except a
   52  school district under article fifty-two of the education law,  that  has
   53  not  acted  to  remove  the exemption under this section may require the
   54  owner of a property which includes a [solar or  wind]  RENEWABLE  energy
   55  system which meets the requirements of subdivision four of this section,
   56  to  enter  into  a contract for payments in lieu of taxes. Such contract
       S. 3465                             4                            A. 4961
    1  may require annual payments in an amount not to exceed the amounts which
    2  would otherwise be payable but for the exemption under this section.  If
    3  the owner or developer of such a system provides written notification to
    4  a  taxing jurisdiction of its intent to construct such a system, then in
    5  order to require the owner or developer of such system to enter  into  a
    6  contract  for  payments  in lieu of taxes, such taxing jurisdiction must
    7  notify such owner or developer of its intent to require a  contract  for
    8  payments  in  lieu  of  taxes within sixty days of receiving the written
    9  notification.
   10    (b) The payment in lieu of a tax agreement shall  not  operate  for  a
   11  period  of more than fifteen years, commencing in each instance from the
   12  date on which the benefits of such exemption first become available  and
   13  effective.
   14    S 2. This act shall take effect immediately.