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

                                  4750

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

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.
                                                           LBD04869-02-5
              

S. 4750                             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), (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 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,  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.
IT DOES NOT INCLUDE INSULATED GLAZING OR INSULATION TO THE  EXTENT  THAT

S. 4750                             3

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 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,  OR  MICRO-COMBINED  HEAT  AND  POWER
GENERATING EQUIPMENT SYSTEMS WHICH ARE CONSTRUCTED SUBSEQUENT TO JANUARY
FIRST,  TWO  THOUSAND  SIXTEEN  AND PRIOR TO JANUARY FIRST, TWO THOUSAND
TWENTY-FIVE.
  S 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,
OR MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT SYSTEM CONSTRUCTED
SUBSEQUENT TO JANUARY FIRST, TWO THOUSAND SIXTEEN 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, 2016.

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

                                 4750--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sens.  GRIFFO, AVELLA, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the  Committee  on  Local
  Government -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

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,  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
value attributable to such system or components multiplied by the  ratio

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04869-06-5
              

S. 4750--A                          2

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,
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.
  S 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
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

S. 4750--A                          3

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.
  S 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  SIXTEEN  AND  PRIOR  TO  JANUARY  FIRST,   TWO   THOUSAND
TWENTY-FIVE.
  S 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,
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 SIXTEEN OR THE EFFECTIVE DATE

S. 4750--A                          4

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, 2016.

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

                                 4750--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sens.  GRIFFO, AVELLA, VALESKY -- read twice and ordered
  printed, and when printed to be committed to the  Committee  on  Local
  Government -- committee discharged, bill amended, ordered reprinted as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Local Government in accordance with Senate Rule 6, sec. 8
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

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,  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04869-09-6
              

S. 4750--B                          2

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,
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.
  S  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

S. 4750--B                          3

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.
  S  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 SEVENTEEN AND PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-
SIX.
  S 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,

S. 4750--B                          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  SEVENTEEN  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 commis-
sioner and with the president of the authority.
  S 5. This act shall take effect January 1, 2017.