S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7204

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

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:

  Section  1. The section heading and subdivisions 2, 3 and 4 of section
487 of the real property tax law, as amended by chapter 515 of the  laws
of 2002, are amended to read as follows:
  Exemption  from  taxation for certain [solar or wind energy systems or
farm waste] energy systems.
  2. Real property which includes a solar or wind  energy  system  [or],
farm  waste  energy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL
ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND POWER  GENERATING
EQUIPMENT  SYSTEM  approved  in  accordance  with the provisions of this
section shall be exempt from taxation to the extent of any  increase  in
the value thereof by reason of the inclusion of such solar or wind ener-
gy  system  [or],  farm  waste energy system, MICRO-HYDROELECTRIC ENERGY
SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, OR MICRO-COMBINED HEAT AND
POWER GENERATING EQUIPMENT SYSTEM for a period of fifteen years.  When a
solar or wind energy system or components thereof [or], farm waste ener-
gy system, MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTIC GENERAT-
ING SYSTEM, OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM
also serve as part of the building  structure,  the  increase  in  value
which shall be exempt from taxation shall be equal to the assessed value
attributable to such system or components multiplied by the ratio of the
incremental  cost of such system or components to the total cost of such
system or components.
  3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the  solar  and  wind  energy
equipment  and  systems  [and], farm waste energy equipment and systems,
MICRO-HYDROELECTRIC EQUIPMENT AND SYSTEMS, FUEL CELL ELECTRIC GENERATING
EQUIPMENT AND SYSTEMS, AND  MICRO-COMBINED  HEAT  AND  POWER  GENERATING
EQUIPMENT  AND SYSTEMS described in paragraphs (a) [and], (b), (C), (D),

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14911-01-4

S. 7204                             2

(E), (F), (G), (H), (I), (J), (K) AND (L) of  subdivision  one  of  this
section.
  4.  No  solar  or  wind  energy system [or], farm waste energy system,
MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,
OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT  SYSTEM  shall  be
entitled  to  any exemption from taxation under this section unless such
system meets the guidelines set by the president of  the  authority  and
all other applicable provisions of law.
  S  2.  Subdivision  1  of  section 487 of the real property tax law is
amended by adding six new paragraphs (g), (h), (i), (j), (k) and (l)  to
read as follows:
  (G)  "MICRO-HYDROELECTRIC  ENERGY  EQUIPMENT" MEANS ANY ENERGY STORAGE
DEVICE, PENSTOCK, TURBINE, GENERATOR AND OTHER MATERIALS,  HARDWARE  AND
EQUIPMENT  NECESSARY TO THE PROCESS BY WHICH THE FLOW OF STREAM OR RIVER
WATER OR WATER FROM OTHER WATER BODIES IS (I) CONVERTED INTO  ELECTRICAL
ENERGY;  (II) PROTECTED FROM UNNECESSARY DISSIPATION; AND (III) DISTRIB-
UTED. IT DOES NOT INCLUDE PIPES, CONTROLS, INSULATION OR OTHER EQUIPMENT
WHICH ARE PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A
BUILDING. IT DOES NOT INCLUDE INSULATED GLAZING  OR  INSULATION  TO  THE
EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTAB-
LISHED BY LAW.
  (H) "MICRO-HYDROELECTRIC ENERGY SYSTEM" MEANS AN ARRANGEMENT OR COMBI-
NATION OF MICRO-HYDROELECTRIC ENERGY EQUIPMENT DESIGNED TO PROVIDE ELEC-
TRICAL  ENERGY  BY  THE USE OF FLOWING WATER. IT DOES NOT INCLUDE PIPES,
CONTROLS, INSULATION OR OTHER EQUIPMENT WHICH ARE  PART  OF  THE  NORMAL
HEATING,  COOLING,  OR  INSULATION  SYSTEM  OF  A  BUILDING. IT DOES NOT
INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT SUCH  MATERI-
ALS EXCEED THE ENERGY EFFICIENCY STANDARDS ESTABLISHED BY LAW.
  (I)  "FUEL  CELL  ELECTRIC  GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL  CELL
WITH  A  COMBINED  RATED  CAPACITY  OF  NOT  MORE THAN ONE THOUSAND FIVE
HUNDRED KILOWATTS. IT DOES NOT INCLUDE INSULATED GLAZING  OR  INSULATION
TO THE EXTENT THAT SUCH MATERIALS EXCEED THE ENERGY EFFICIENCY STANDARDS
ESTABLISHED BY LAW.
  (J)  "FUEL  CELL  ELECTRIC  GENERATING SYSTEM" MEANS AN ARRANGEMENT OR
COMBINATION OF EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL  ENERGY  THROUGH
REACTION  OF  CHEMICALS,  INCLUDING BUT NOT LIMITED TO HYDROGEN, OXYGEN,
METHANE AND NATURAL GAS.
  (K) "MICRO-COMBINED HEAT AND  POWER  GENERATING  EQUIPMENT"  MEANS  AN
INTEGRATED,  COGENERATING  BUILDING  HEATING AND ELECTRICAL POWER GENER-
ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE  ENGINE,  FUEL
CELL  OR OTHER TECHNOLOGY WITH A RATED CAPACITY OF AT LEAST ONE KILOWATT
AND NOT MORE THAN TEN KILOWATTS ELECTRIC AND ANY THERMAL OUTPUT THAT HAS
A DESIGN TOTAL FUEL USE EFFICIENCY IN THE PRODUCTION OF HEAT  AND  ELEC-
TRICITY  OF NOT LESS THAN EIGHTY PERCENT, AND ANNUALLY PRODUCES AT LEAST
TWO THOUSAND KILOWATT HOURS OF USEFUL ENERGY IN THE FORM OF  ELECTRICITY
THAT  MAY WORK IN COMBINATION WITH SUPPLEMENTAL OR PARALLEL CONVENTIONAL
HEATING SYSTEMS, THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORD-
ANCE  WITH  APPLICABLE  GOVERNMENT  AND  INDUSTRY  STANDARDS,  THAT   IS
CONNECTED  TO  THE  ELECTRIC  SYSTEM AND OPERATED IN CONJUNCTION WITH AN
ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES. IT DOES
NOT INCLUDE PIPES, CONTROLS, INSULATION OR  OTHER  EQUIPMENT  WHICH  ARE
PART OF THE NORMAL HEATING, COOLING, OR INSULATION SYSTEM OF A BUILDING.
IT  DOES  NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE EXTENT THAT
SUCH MATERIALS EXCEED THE ENERGY  EFFICIENCY  STANDARDS  ESTABLISHED  BY
LAW.

S. 7204                             3

  (L)  "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM" MEANS
AN ARRANGEMENT OR COMBINATION OF EQUIPMENT  DESIGNED  TO  PRODUCE  ELEC-
TRICAL ENERGY AND HEAT FOR A BUILDING OR ASSOCIATED BUILDINGS.
  S  3.  Subdivision  5  of section 487 of the real property tax law, as
amended by chapter 366 of the laws  of  2010,  is  amended  to  read  as
follows:
  5. The exemption granted pursuant to this section shall only be appli-
cable  to  (A) solar or wind energy systems or farm waste energy systems
which are [(a)] (I) existing or constructed prior to July  first,  nine-
teen  hundred eighty-eight or [(b)] (II) constructed subsequent to Janu-
ary first, nineteen hundred ninety-one and prior to January  first,  two
thousand   [fifteen]   SEVENTEEN,  AND  (B)  MICRO-HYDROELECTRIC  ENERGY
SYSTEMS, FUEL CELL ELECTRIC GENERATING SYSTEMS, OR  MICRO-COMBINED  HEAT
AND  POWER GENERATING EQUIPMENT SYSTEMS WHICH ARE CONSTRUCTED SUBSEQUENT
TO JANUARY FIRST, TWO THOUSAND FIFTEEN AND PRIOR TO JANUARY  FIRST,  TWO
THOUSAND SEVENTEEN.
  S  4.  Subdivision  8  of section 487 of the real property tax law, as
amended by chapter 515 of the laws of 2002, and as  further  amended  by
subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
2010, is amended to read as follows:
  8. Notwithstanding the provisions of subdivision two of this  section,
a  county,  city, town or village may by local law or a school district,
other than a school district to which article fifty-two of the education
law applies, may by resolution provide  EITHER  (A)  that  no  exemption
under  this  section  shall  be  applicable within its jurisdiction with
respect to any solar or wind energy system or farm waste  energy  system
constructed  subsequent to January first, nineteen hundred ninety-one or
the effective date of such local law, ordinance or resolution, whichever
is later, AND/OR (B) THAT NO  EXEMPTION  UNDER  THIS  SECTION  SHALL  BE
APPLICABLE  WITHIN ITS JURISDICTION WITH RESPECT TO ANY MICRO-HYDROELEC-
TRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM, OR  MICRO-COM-
BINED  HEAT AND POWER GENERATING EQUIPMENT SYSTEM CONSTRUCTED SUBSEQUENT
TO JANUARY FIRST, TWO THOUSAND FIFTEEN OR THE  EFFECTIVE  DATE  OF  SUCH
LOCAL  LAW,  ORDINANCE OR RESOLUTION, WHICHEVER IS LATER.  A copy of any
such local law or resolution shall be filed with  the  commissioner  and
with the president of the authority.
  S 5. This act shall take effect January 1, 2015.