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

                                  9528

                          I N  A S S E M B L Y

                               May 6, 2014
                               ___________

Introduced  by  M.  of  A.  PAULIN, TITONE, SCHIMEL, RIVERA, OTIS, MOYA,
  MARKEY, HENNESSEY, GOTTFRIED, CRESPO, COLTON, CAHILL, BARRETT, ABINAN-
  TI, CROUCH -- Multi-Sponsored by -- M. of A. BUCHWALD,  CAMARA,  COOK,
  MAGEE, ROBINSON, WEISENBERG -- 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, 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,

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

                                                           LBD14911-01-4

A. 9528                             2

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),
(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.

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IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE  EXTENT  THAT
SUCH  MATERIALS  EXCEED  THE  ENERGY EFFICIENCY 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 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.