S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3875
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2021
                                ___________
 
 Introduced  by  M. of A. CUSICK, WALKER -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the real property tax law and the administrative code of
   the city of New York, in relation to applications by certain  electric
   generating facilities for tax abatements for industrial and commercial
   construction  work  on  properties  in  a  city of one million or more
   persons
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature hereby finds that the
 2011  amendment  to  the industrial and commercial abatement program was
 successful in preventing a large increase in capacity  rates  for  elec-
 tricity that would have cost ratepayers in the city of New York hundreds
 of  millions  of  dollars  had the law not been changed. However, in the
 haste to adopt that law, a new peaking  power  plant  fell  through  the
 cracks  and  has been paying property taxes since it began operations in
 2012, even though the 2011 statute clearly intended that industrial  and
 commercial  abatement  program  benefits  be  provided  to peaking power
 plants as a right. This act would correct that defect in the statute and
 enable the facility  to  receive  industrial  and  commercial  abatement
 program benefits prospectively.
   §  2.  Subdivision  17  of section 489-aaaaaa of the real property tax
 law, as amended by chapter 28 of the laws of 2011, is amended to read as
 follows:
   17. "Utility property" means property and equipment  as  described  in
 paragraphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section
 one hundred two of this chapter that is used in the ordinary  course  of
 business  by  its  owner or any other entity or property as described in
 paragraphs (a) and (b) of subdivision twelve of section one hundred  two
 of  this  chapter  that is owned by any entity that uses in the ordinary
 course of business property and equipment  as  described  in  paragraphs

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

                                                            LBD06832-01-1

 A. 3875                             2
 
 (c),  (d), (e), (f) and (i) of subdivision twelve of section one hundred
 two of this chapter, without regard to the classification of such  prop-
 erty  and  equipment  for real property tax purposes pursuant to section
 eighteen  hundred two of this chapter, except that any such property and
 equipment used solely to serve the building to which they  are  attached
 shall  not  be deemed utility property. Notwithstanding any provision of
 this title to the contrary, peaking units shall not be considered utili-
 ty property. For purposes of this title, "peaking  unit"  shall  mean  a
 generating  unit  that:  (a)  is  determined by the New York independent
 system operator or a federal or New York state energy regulatory commis-
 sion to constitute a peaking unit as set forth in  section  5.14.1.2  of
 the  New  York  independent  system operator's market administration and
 control area services tariff, as such term existed as  of  April  first,
 two  thousand eleven; or (b) has an annual average operation, during the
 calendar year preceding the taxable status date, of less  than  eighteen
 hours  following each start of the unit; for purposes of calculating the
 annual average, operations during any period covered by any major  emer-
 gency  declaration  issued  by the New York independent system operator,
 northeast power coordinating council, or other similar entity  shall  be
 excluded; OR (C) NOTWITHSTANDING THE REQUIREMENTS AND PROVISIONS OF THIS
 TITLE,   ANY   PEAKING   UNIT  THAT  WAS  PLANNED,  APPROVED  AND  UNDER
 CONSTRUCTION BETWEEN THE EFFECTIVE DATE OF THIS TITLE AND THE  EFFECTIVE
 DATE  OF  CHAPTER  TWENTY-EIGHT  OF THE LAWS OF TWO THOUSAND ELEVEN, AND
 UPON GOING INTO SERVICE EXCLUSIVELY  PROVIDES  ELECTRICITY  TO  ZONE  J,
 SHALL  BE  DEEMED  ELIGIBLE  FOR  THE  BENEFITS OF THIS TITLE; PROVIDED,
 HOWEVER, THAT THE BENEFIT PERIOD FOR A PEAKING  UNIT  SHALL  BE  AS  SET
 FORTH  IN  PARAGRAPH  (B-1) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED
 EIGHTY-NINE-BBBBBB OF THIS TITLE; AND PROVIDED, FURTHER, THAT SUCH BENE-
 FITS SHALL COMMENCE UPON THE EFFECTIVE DATE OF THIS PARAGRAPH. A  "peak-
 ing  unit"  under  this  title  shall  include all real property used in
 connection with the generation of electricity, and any  facilities  used
 to  interconnect  the  peaking  unit  with  the electric transmission or
 distribution system, but shall not include any facilities that are  part
 of the electric transmission or distribution system; it may be comprised
 of  a  single  turbine and generator or multiple turbines and generators
 located at the same site. Notwithstanding any provision of this title to
 the contrary, a peaking unit shall be  considered  industrial  property,
 provided  however that the benefit period for a peaking unit shall be as
 set forth in paragraph  (b-1)  of  subdivision  three  of  section  four
 hundred eighty-nine-bbbbbb of this title.
   § 3. Subdivision q of section 11-268 of the administrative code of the
 city  of  New  York,  as  amended  by chapter 28 of the laws of 2011, is
 amended to read as follows:
   q. "Utility property" means property and  equipment  as  described  in
 paragraphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section
 one hundred two of the real property tax law that is used in  the  ordi-
 nary  course of business by its owner or any other entity or property as
 described in paragraphs (a) and (b) of subdivision twelve of section one
 hundred two of such law that is owned by any entity  that  uses  in  the
 ordinary course of business property and equipment as described in para-
 graphs  (c),  (d), (e), (f) and (i) of subdivision twelve of section one
 hundred two of such law, without regard to the  classification  of  such
 property  and  equipment  for  real  property  tax  purposes pursuant to
 section eighteen hundred two of such law, except that any such  property
 and  equipment  used  solely  to  serve  the  building to which they are
 attached shall not  be  deemed  utility  property.  Notwithstanding  any

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 provision  of  this  part  to  the  contrary, peaking units shall not be
 considered utility property. For purposes of this part,  "peaking  unit"
 shall  mean  a  generating  unit that: (a) is determined by the New York
 independent  system operator or a federal or New York state energy regu-
 latory commission to constitute a peaking unit as set forth  in  section
 5.14.1.2  of  the New York independent system operator's market adminis-
 tration and control area services tariff, as such  term  existed  as  of
 April  first,  two  thousand eleven; or (b) has an annual average opera-
 tion, during the calendar year preceding the  taxable  status  date,  of
 less  than eighteen hours following each start of the unit; for purposes
 of calculating the annual average, operations during any period  covered
 by  any  major  emergency declaration issued by the New York independent
 system operator, northeast power coordinating council, or other  similar
 entity  shall  be  excluded; OR (C) NOTWITHSTANDING THE REQUIREMENTS AND
 PROVISIONS OF THIS PART, ANY PEAKING UNIT THAT WAS PLANNED, APPROVED AND
 UNDER CONSTRUCTION BETWEEN THE EFFECTIVE DATE OF TITLE TWO-F OF  ARTICLE
 FOUR  OF  THE  REAL  PROPERTY  TAX LAW AND THE EFFECTIVE DATE OF CHAPTER
 TWENTY-EIGHT OF THE LAWS OF TWO THOUSAND ELEVEN,  AND  UPON  GOING  INTO
 SERVICE  EXCLUSIVELY  PROVIDES  ELECTRICITY  TO  ZONE J, SHALL BE DEEMED
 ELIGIBLE FOR THE BENEFITS OF THIS  PART;  PROVIDED,  HOWEVER,  THAT  THE
 BENEFIT  PERIOD  FOR  A  PEAKING UNIT SHALL BE AS SET FORTH IN PARAGRAPH
 TWO-A OF SUBDIVISION C OF SECTION 11-269 OF  THIS  PART;  AND  PROVIDED,
 FURTHER,  THAT  SUCH  BENEFITS SHALL COMMENCE UPON THE EFFECTIVE DATE OF
 THIS PARAGRAPH. A "peaking unit" under this part shall include all  real
 property  used in connection with the generation of electricity, and any
 facilities used to interconnect the peaking unit with the electric tran-
 smission or distribution system, but shall not  include  any  facilities
 that  are  part  of the electric transmission or distribution system; it
 may be comprised of a single turbine and generator or multiple  turbines
 and  generators located at the same site.  Notwithstanding any provision
 of this part to the contrary, a peaking unit shall be considered  indus-
 trial  property,  provided however that the benefit period for a peaking
 unit shall be as set forth  in  paragraph  two-a  of  subdivision  c  of
 section 11-269 of this part.
   § 4. This act shall take effect immediately.