S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6033
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 30, 2021
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 AN  ACT  to amend the real property tax law, 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
 (c), (d), (e), (f) and (i) of subdivision twelve of section one  hundred

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

                                                            LBD06832-03-1

 S. 6033                             2
 
 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 OR STORAGE unit that: (a) is determined by the New York inde-
 pendent system operator or a federal or New York state energy regulatory
 commission 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) ANY GENERATING OR STORAGE UNIT THAT CAN SUPPLY  TEN-MI-
 NUTE  NON-SPINNING  AND/OR TEN-MINUTE SPINNING RESERVE AS DEFINED BY THE
 NEW  YORK  INDEPENDENT  SYSTEM  OPERATOR;  OR  (D)  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 BENEFITS SHALL COMMENCE UPON THE EFFECTIVE DATE OF THIS  PARA-
 GRAPH. A "peaking unit" under this title shall include all real property
 used  in  connection with the generation of electricity, and any facili-
 ties used to interconnect the peaking  unit  with  the  electric  trans-
 mission  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 indus-
 trial  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. This act shall take effect April 1, 2022.