S T A T E O F N E W Y O R K
________________________________________________________________________
9651--A
I N A S S E M B L Y
January 30, 2018
___________
Introduced by M. of A. CUSICK, SIMOTAS -- read once and referred to the
Committee on Real Property Taxation -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the real property tax law, in relation to authorizing an
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. Paragraph (k) of subdivision 1 of section 487 of the real
property tax law, as added by chapter 336 of the laws of 2017, is
amended to read as follows:
(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, FUEL-FLEXIBLE LINEAR GENERATOR 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 annually produces at least two thou-
sand 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 accordance with
applicable government and industry standards, that is connected to the
electric system and operated in conjunction with an electric corpo-
ration'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 materi-
als exceed the energy efficiency standards established by law.
§ 2. Subdivision 1 of section 487 of the real property tax law is
amended by adding two new paragraphs (o) and (p) to read as follows:
(O) "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT" OR
"FUEL-FLEXIBLE LINEAR GENERATOR" MEANS AN INTEGRATED SYSTEM CONSISTING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14242-05-8
A. 9651--A 2
OF OSCILLATORS, CYLINDERS, ELECTRICITY CONVERSION EQUIPMENT AND ASSOCI-
ATED BALANCE OF PLANT COMPONENTS THAT DIRECTLY CONVERT THE LINEAR MOTION
OF THE OSCILLATORS INTO ELECTRICITY AND WHICH HAS A COMBINED RATED
CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
(P) "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM" MEANS
AN ARRANGEMENT OR COMBINATION OF FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC
GENERATING EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY FROM LINEAR
MOTION CREATED BY THE REACTION OF GASEOUS OR LIQUID FUELS, INCLUDING BUT
NOT LIMITED TO BIOGAS AND NATURAL GAS.
§ 3. Subdivisions 2, 3, 4, 5, and 8 of section 487 of the real proper-
ty tax law, subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision
8 as amended by chapter 336 of the laws of 2017, and subdivision 8 as
amended by chapter 344 of the laws of 2014, are amended to read as
follows:
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 heat and power generating equip-
ment system, [or] electric energy storage equipment and electric energy
storage system, OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING
SYSTEM approved in accordance with the provisions of this section shall
be exempt from taxation to the extent of any increase in the value ther-
eof by reason of the inclusion of such solar or wind energy system, farm
waste energy system, micro-hydroelectric energy system, fuel cell elec-
tric generating system, micro-combined heat and power generating equip-
ment system, [or] electric energy storage equipment and electric energy
storage system, OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRONIC GENERATING
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 electric generating system, micro-combined heat
and power generating equipment system, [or] electric energy storage
equipment and electric energy storage system, OR FUEL-FLEXIBLE LINEAR
GENERATOR ELECTRONIC GENERATING SYSTEM also serve as part of the build-
ing 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. 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 heat and power generating equip-
ment and systems [and], electric energy storage equipment and electric
energy storage system, AND FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC
GENERATING EQUIPMENT AND SYSTEMS described in paragraphs (a), (b), (e),
(f), (g), (h), (i), (j), (k), (l), (m) [and], (n), (O) AND (P) of subdi-
vision 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 heat and power generating equipment system, [or] electric ener-
gy storage equipment and electric energy storage system, OR
FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM shall be enti-
tled to any exemption from taxation under this section unless such
A. 9651--A 3
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 heat and power generating equip-
ment systems, [or] electric energy storage equipment or electric energy
storage system, OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING
SYSTEM which are constructed subsequent to January first, two thousand
eighteen and prior to January first, two thousand twenty-five.
8. (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
resolution, 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, OR FUEL-
FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM constructed subse-
quent 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.
(b) Construction of a solar or wind energy system or a farm waste
energy system shall be deemed to have begun upon the full execution of a
contract or interconnection agreement with a utility; provided however,
that if such contract or interconnection agreement requires a deposit to
be made, then construction shall be deemed to have begun when the
contract or interconnection agreement is fully executed and the deposit
is made. The owner or developer of such a system shall provide written
notification to the appropriate local jurisdiction or jurisdictions upon
execution of the contract or the interconnection agreement.
§ 4. This act shall take effect January 19, 2019.