S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4069
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2017
                                ___________
 
 Introduced  by  Sens.  GRIFFO, AVELLA, VALESKY -- 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, subdivision 2 as amended by section 3 of part P of  chapter  57
 of the laws of 2016, 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.
              

                                                            LBD01687-01-7

 S. 4069                             2
 
 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 [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.
   § 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

 S. 4069                             3
 
 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.
   § 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 EIGHTEEN AND PRIOR TO JANUARY FIRST, TWO  THOUSAND  TWENTY-
 FIVE.
   § 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

 S. 4069                             4
 
 ENERGY STORAGE EQUIPMENT OR ELECTRIC ENERGY STORAGE  SYSTEM  CONSTRUCTED
 SUBSEQUENT 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.
   § 5. This act shall take effect January 1, 2018.