S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8906
 
                           I N  A S S E M B L Y
 
                              January 5, 2018
                                ___________
 
 Introduced  by  M. of A. PAULIN, DICKENS, D'URSO, JAFFEE, LIFTON, ORTIZ,
   SEPULVEDA, SIMON, CASTORINA, CROUCH -- read once and referred  to  the
   Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to exempting from
   taxation combined heat and power generating equipment
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (k) and (l) of subdivision 1, subdivisions 2, 3,
 4 and 5 and paragraph (a) of subdivision 8 of section 487  of  the  real
 property  tax  law, paragraphs (k) and (l) of subdivision 1 as added and
 subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision 8 as amended
 by chapter 336 of the laws of 2017, are amended to read as follows:
   (k) "[Micro-combined] COMBINED heat and  power  generating  equipment"
 means  an integrated, cogenerating building heating and electrical power
 generation system, [owned, leased or operated by] SERVING a  residential
 OR  COMMERCIAL  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 of at least one kilowatt and not more than [ten
 kilowatts] FIFTEEN MEGAWATTS electric and any thermal output that has  a
 design total fuel use efficiency in the production of heat and electric-
 ity  of  not  less than [eighty] SIXTY percent, and annually produces at
 least two thousand kilowatt hours of useful energy in the form of  elec-
 tricity  that  may  work  in  combination  with supplemental or parallel
 conventional heating systems, that is manufactured, installed and  oper-
 ated  in  accordance  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 estab-
 lished by law.
   (l)  "[Micro-combined]  COMBINED  heat  and power generating equipment
 system" means an arrangement or combination  of  equipment  designed  to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13958-01-7

 A. 8906                             2
 
 produce  electrical  energy  and  heat  for  a residential OR COMMERCIAL
 customer on such customer's premises.
   2.  Real  property  which includes a solar or wind energy system, farm
 waste energy system, micro-hydroelectric energy system, fuel cell  elec-
 tric  generating system, [micro-combined] COMBINED heat and power gener-
 ating equipment system, or electric energy storage equipment  and  elec-
 tric 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
 energy system, farm  waste  energy  system,  micro-hydroelectric  energy
 system,  fuel cell electric generating system, [micro-combined] 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,  farm
 waste  energy system, micro-hydroelectric energy system, fuel cell elec-
 tric generating system, [micro-combined] COMBINED heat and power  gener-
 ating  equipment  system, or electric energy storage equipment and elec-
 tric 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 value attributable to such system or  components  multi-
 plied  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, farm waste energy equipment and  systems,  micro-
 hydroelectric  equipment  and  systems,  fuel  cell  electric generating
 equipment and systems, [micro-combined] COMBINED heat and power generat-
 ing equipment and systems and  electric  energy  storage  equipment  and
 electric  energy  storage  system described in paragraphs (a), (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, farm waste energy system, micro-hy-
 droelectric   energy  system,  fuel  cell  electric  generating  system,
 [micro-combined] 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.
   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 (i) existing or constructed  prior  to  July  first,  nineteen
 hundred  eighty-eight  or  (ii) constructed subsequent to January first,
 nineteen hundred ninety-one and prior to  January  first,  two  thousand
 twenty-five, and (b) micro-hydroelectric energy systems, fuel cell elec-
 tric generating systems, [micro-combined] COMBINED heat and power gener-
 ating  equipment  systems, or electric energy storage equipment or elec-
 tric energy storage system which are constructed subsequent  to  January
 first,  two  thousand  eighteen and prior to January first, two thousand
 twenty-five.
   (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

 A. 8906                             3
 
 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,
 [micro-combined] 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.
   § 2. This act shall take effect January 1,  2019;  provided,  however,
 that  if  chapter 336 of the laws of 2017 shall not have taken effect on
 or before such date then section one of this act shall  take  effect  on
 the  same  date  and  in  the same manner as such chapter of the laws of
 2017, takes effect.