S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    260
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 5, 2017
                                ___________
 
 Introduced  by  M.  of A. PAULIN, TITONE, RIVERA, OTIS, MOYA, GOTTFRIED,
   CRESPO, COLTON, CAHILL, BARRETT, ABINANTI, CROUCH  --  Multi-Sponsored
   by  -- M. of A.  BUCHWALD, COOK, LOPEZ, MAGEE, 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:
 
   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,  subdivision 2 as amended by section 3 of part P of chapter 57
 of the laws of 2016, 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,  MICRO-COMBINED  HEAT AND POWER GENERATING
 EQUIPMENT SYSTEM, OR ELECTRIC  ENERGY  STORAGE  EQUIPMENT  AND  ELECTRIC
 ENERGY STORAGE 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, MICRO-COMBINED HEAT AND
 POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC ENERGY STORAGE  EQUIPMENT
 AND  ELECTRIC ENERGY STORAGE SYSTEM for a period of fifteen years.  When
 a solar or wind energy system or components  thereof  [or],  farm  waste
 energy  system,  MICRO-HYDROELECTRIC  ENERGY  SYSTEM, FUEL CELL ELECTRIC
 GENERATING SYSTEM, MICRO-COMBINED HEAT AND  POWER  GENERATING  EQUIPMENT
 SYSTEM, OR ELECTRIC ENERGY STORAGE EQUIPMENT AND ELECTRIC ENERGY STORAGE
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01687-01-7

 A. 260                              2
 
 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. The exemption provided by this section  is
 inapplicable  to  any  structure  that  satisfies  the  requirements for
 exemption under section four hundred eighty-three-e of this title.
   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, MICRO-COMBINED HEAT AND POWER  GENERATING  EQUIP-
 MENT  AND  SYSTEMS  AND  ELECTRIC  ENERGY STORAGE EQUIPMENT AND ELECTRIC
 ENERGY STORAGE SYSTEM described in paragraphs (a) [and], (b), (E),  (F),
 (G),  (H),  (I),  (J),  (K), (L), (M) AND (N) 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,
 MICRO-COMBINED  HEAT  AND POWER GENERATING EQUIPMENT SYSTEM, OR ELECTRIC
 ENERGY STORAGE EQUIPMENT AND ELECTRIC ENERGY  STORAGE  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.
   §  2.  Subdivision  1  of  section 487 of the real property tax law is
 amended by adding eight new paragraphs (g), (h), (i), (j), (k), (l), (m)
 and (n) 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 TWO THOUSAND  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, OWNED, LEASED  OR  OPERATED  BY  A  RESIDENTIAL  CUSTOMER,
 LOCATED  AT  SUCH  CUSTOMER'S PREMISES, OPERATING ON ANY FUEL AND OF ANY
 APPLICABLE ENGINE, FUEL CELL OR OTHER TECHNOLOGY WITH A  RATED  CAPACITY

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 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 ELECTRICITY 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  SUPPLE-
 MENTAL  OR  PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
 INSTALLED AND OPERATED IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT  AND
 INDUSTRY  STANDARDS,  THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
 ATED 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 EFFI-
 CIENCY STANDARDS ESTABLISHED BY LAW.
   (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 RESIDENTIAL  CUSTOMER  ON  SUCH  CUSTOMER'S
 PREMISES.
   (M)  "ELECTRIC  ENERGY  STORAGE EQUIPMENT" MEANS A SET OF TECHNOLOGIES
 CAPABLE OF STORING ELECTRIC ENERGY AND RELEASING THAT ENERGY AS ELECTRIC
 POWER AT A LATER TIME. ELECTRIC ENERGY STORAGE  TECHNOLOGIES  MAY  STORE
 ENERGY  AS  POTENTIAL,  KINETIC, CHEMICAL OR THERMAL ENERGY, THAT CAN BE
 RELEASED AS ELECTRIC POWER AND INCLUDE, BUT ARE NOT LIMITED TO,  VARIOUS
 TYPES  OF  BATTERIES,  FLYWHEELS, ELECTROCHEMICAL CAPACITORS, COMPRESSED
 AIR STORAGE AND THERMAL STORAGE DEVICES.
   (N) "ELECTRIC ENERGY STORAGE SYSTEM" MEANS AN ARRANGEMENT OR  COMBINA-
 TION OF EQUIPMENT DESIGNED TO STORE ELECTRICAL ENERGY IN ELECTRIC ENERGY
 STORAGE EQUIPMENT AND RELEASE ELECTRIC POWER AT A LATER TIME.
   §  3.  Subdivision  5  of section 487 of the real property tax law, as
 amended by chapter 344 of the laws  of  2014,  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  twenty-five,  AND (B) MICRO-HYDROELECTRIC ENERGY SYSTEMS, FUEL
 CELL ELECTRIC GENERATING SYSTEMS, MICRO-COMBINED HEAT AND POWER GENERAT-
 ING EQUIPMENT SYSTEMS, OR ELECTRIC ENERGY STORAGE EQUIPMENT OR  ELECTRIC
 ENERGY STORAGE SYSTEM WHICH ARE CONSTRUCTED SUBSEQUENT TO JANUARY FIRST,
 TWO  THOUSAND  EIGHTEEN AND PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-
 FIVE.
   § 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
 ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
 read as follows:
   (a) 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 (I) 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
 which began construction subsequent to January first,  nineteen  hundred
 ninety-one  or the effective date of such local law, ordinance or resol-
 ution, whichever is later, AND/OR (II)  THAT  NO  EXEMPTION  UNDER  THIS
 SECTION  SHALL BE APPLICABLE WITHIN ITS JURISDICTION WITH RESPECT TO ANY
 MICRO-HYDROELECTRIC ENERGY SYSTEM, FUEL CELL ELECTRIC GENERATING SYSTEM,

 A. 260                              4

 MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM,  OR  ELECTRIC
 ENERGY  STORAGE  EQUIPMENT OR ELECTRIC ENERGY STORAGE SYSTEM CONSTRUCTED
 SUBSEQUENT TO JANUARY FIRST, TWO THOUSAND EIGHTEEN 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.
   § 5. This act shall take effect January 1, 2018.