S T A T E O F N E W Y O R K
________________________________________________________________________
4750--A
2015-2016 Regular Sessions
I N S E N A T E
April 15, 2015
___________
Introduced by Sens. GRIFFO, AVELLA, VALESKY -- read twice and ordered
printed, and when printed to be committed to the Committee on Local
Government -- 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, MICRO-COMBINED HEAT AND POWER GENERATING
9 EQUIPMENT SYSTEM, OR ELECTRIC ENERGY STORAGE EQUIPMENT AND ELECTRIC
10 ENERGY STORAGE SYSTEM approved in accordance with the provisions of this
11 section shall be exempt from taxation to the extent of any increase in
12 the value thereof by reason of the inclusion of such solar or wind ener-
13 gy system [or], farm waste energy system, MICRO-HYDROELECTRIC ENERGY
14 SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, MICRO-COMBINED HEAT AND
15 POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC ENERGY STORAGE EQUIPMENT
16 AND ELECTRIC ENERGY STORAGE SYSTEM for a period of fifteen years. When
17 a solar or wind energy system or components thereof [or], farm waste
18 energy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC
19 GENERATING SYSTEM, MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT
20 SYSTEM, OR ELECTRIC ENERGY STORAGE EQUIPMENT AND ELECTRIC ENERGY STORAGE
21 SYSTEM also serve as part of the building structure, the increase in
22 value which shall be exempt from taxation shall be equal to the assessed
23 value attributable to such system or components multiplied by the ratio
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04869-06-5
S. 4750--A 2
1 of the incremental cost of such system or components to the total cost
2 of such 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, MICRO-COMBINED HEAT AND POWER GENERATING EQUIP-
8 MENT AND SYSTEMS AND ELECTRIC ENERGY STORAGE EQUIPMENT AND ELECTRIC
9 ENERGY STORAGE SYSTEM described in paragraphs (a) [and], (b), (E), (F),
10 (G), (H), (I), (J), (K), (L), (M) AND (N) of subdivision one of this
11 section.
12 4. No solar or wind energy system [or], farm waste energy system,
13 MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
14 MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC
15 ENERGY STORAGE EQUIPMENT AND ELECTRIC ENERGY STORAGE SYSTEM shall be
16 entitled to any exemption from taxation under this section unless such
17 system meets the guidelines set by the president of the authority and
18 all other applicable provisions of law.
19 S 2. Subdivision 1 of section 487 of the real property tax law is
20 amended by adding eight new paragraphs (g), (h), (i), (j), (k), (l), (m)
21 and (n) to read as follows:
22 (G) "MICRO-HYDROELECTRIC ENERGY EQUIPMENT" MEANS ANY ENERGY STORAGE
23 DEVICE, PENSTOCK, TURBINE, GENERATOR AND OTHER MATERIALS, HARDWARE AND
24 EQUIPMENT NECESSARY TO THE PROCESS BY WHICH THE FLOW OF STREAM OR RIVER
25 WATER OR WATER FROM OTHER WATER BODIES IS (I) CONVERTED INTO ELECTRICAL
26 ENERGY; (II) PROTECTED FROM UNNECESSARY DISSIPATION; AND (III) DISTRIB-
27 UTED. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT
28 WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A
29 BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE
30 EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTAB-
31 LISHED BY LAW.
32 (H) "MICRO-HYDROELECTRIC ENERGY SYSTEM" MEANS AN ARRANGEMENT OR COMBI-
33 NATION OF MICRO-HYDROELECTRIC ENERGY EQUIPMENT DESIGNED TO PROVIDE ELEC-
34 TRICAL ENERGY BY THE USE OF FLOWING WATER. IT DOES NOT INCLUDE PIPES,
35 CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE PART OF THE NORMAL
36 HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING. IT DOES NOT
37 INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT SUCH MATERI-
38 ALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY LAW.
39 (I) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
40 MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL
41 WITH A COMBINED RATED CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
42 IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT
43 SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY
44 LAW.
45 (J) "FUEL CELL ELECTRIC GENERATING SYSTEM" MEANS AN ARRANGEMENT OR
46 COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY THROUGH
47 REACTION OF CHEMICALS, INCLUDING BUT NOT LIMITED TO HYDROGEN, OXYGEN,
48 METHANE AND NATURAL GAS.
49 (K) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN
50 INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER-
51 ATION SYSTEM, OWNED, LEASED OR OPERATED BY A RESIDENTIAL CUSTOMER,
52 LOCATED AT SUCH CUSTOMER'S PREMISES, OPERATING ON ANY FUEL AND OF ANY
53 APPLICABLE ENGINE, FUEL CELL OR OTHER TECHNOLOGY WITH A RATED CAPACITY
54 OF AT LEAST ONE KILOWATT AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND
55 ANY THERMAL OUTPUT THAT HAS A DESIGN TOTAL FUEL USE EFFICIENCY IN THE
56 PRODUCTION OF HEAT AND ELECTRICITY OF NOT LESS THAN EIGHTY PERCENT, AND
S. 4750--A 3
1 ANNUALLY PRODUCES AT LEAST TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY
2 IN THE FORM OF ELECTRICITY THAT MAY WORK IN COMBINATION WITH SUPPLE-
3 MENTAL OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
4 INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND
5 INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
6 ATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND
7 DISTRIBUTION FACILITIES. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION
8 OR OTHER EQUIPMENT WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR
9 INSULATION SYSTEM OF A BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING
10 OR INSULATION TO THE EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFI-
11 CIENCY STANDARDS ESTABLISHED BY LAW.
12 (L) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM" MEANS
13 AN ARRANGEMENT OR COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELEC-
14 TRICAL ENERGY AND HEAT FOR A RESIDENTIAL CUSTOMER ON SUCH CUSTOMER'S
15 PREMISES.
16 (M) "ELECTRIC ENERGY STORAGE EQUIPMENT" MEANS A SET OF TECHNOLOGIES
17 CAPABLE OF STORING ELECTRIC ENERGY AND RELEASING THAT ENERGY AS ELECTRIC
18 POWER AT A LATER TIME. ELECTRIC ENERGY STORAGE TECHNOLOGIES MAY STORE
19 ENERGY AS POTENTIAL, KINETIC, CHEMICAL OR THERMAL ENERGY, THAT CAN BE
20 RELEASED AS ELECTRIC POWER AND INCLUDE, BUT ARE NOT LIMITED TO, VARIOUS
21 TYPES OF BATTERIES, FLYWHEELS, ELECTROCHEMICAL CAPACITORS, COMPRESSED
22 AIR STORAGE AND THERMAL STORAGE DEVICES.
23 (N) "ELECTRIC ENERGY STORAGE SYSTEM" MEANS AN ARRANGEMENT OR COMBINA-
24 TION OF EQUIPMENT DESIGNED TO STORE ELECTRICAL ENERGY IN ELECTRIC ENERGY
25 STORAGE EQUIPMENT AND RELEASE ELECTRIC POWER AT A LATER TIME.
26 S 3. Subdivision 5 of section 487 of the real property tax law, as
27 amended by chapter 344 of the laws of 2014, is amended to read as
28 follows:
29 5. The exemption granted pursuant to this section shall only be appli-
30 cable to (A) solar or wind energy systems or farm waste energy systems
31 which are [(a)] (I) existing or constructed prior to July first, nine-
32 teen hundred eighty-eight or [(b)] (II) constructed subsequent to Janu-
33 ary first, nineteen hundred ninety-one and prior to January first, two
34 thousand twenty-five, AND (B) MICRO-HYDROELECTRIC ENERGY SYSTEMS, FUEL
35 CELL ELECTRIC GENERATING SYSTEMS, MICRO-COMBINED HEAT AND POWER GENERAT-
36 ING EQUIPMENT SYSTEMS, OR ELECTRIC ENERGY STORAGE EQUIPMENT OR ELECTRIC
37 ENERGY STORAGE SYSTEM WHICH ARE CONSTRUCTED SUBSEQUENT TO JANUARY FIRST,
38 TWO THOUSAND SIXTEEN AND PRIOR TO JANUARY FIRST, TWO THOUSAND
39 TWENTY-FIVE.
40 S 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
41 ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
42 read as follows:
43 (a) Notwithstanding the provisions of subdivision two of this section,
44 a county, city, town or village may by local law or a school district,
45 other than a school district to which article fifty-two of the education
46 law applies, may by resolution provide EITHER (I) that no exemption
47 under this section shall be applicable within its jurisdiction with
48 respect to any solar or wind energy system or farm waste energy system
49 which began construction subsequent to January first, nineteen hundred
50 ninety-one or the effective date of such local law, ordinance or resol-
51 ution, whichever is later, AND/OR (II) THAT NO EXEMPTION UNDER THIS
52 SECTION SHALL BE APPLICABLE WITHIN ITS JURISDICTION WITH RESPECT TO ANY
53 MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
54 MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC
55 ENERGY STORAGE EQUIPMENT OR ELECTRIC ENERGY STORAGE SYSTEM CONSTRUCTED
56 SUBSEQUENT TO JANUARY FIRST, TWO THOUSAND SIXTEEN OR THE EFFECTIVE DATE
S. 4750--A 4
1 OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION, WHICHEVER IS LATER. A copy
2 of any such local law or resolution shall be filed with the commissioner
3 and with the president of the authority.
4 S 5. This act shall take effect January 1, 2016.