S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2616
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by M. of A. PAULIN, DICKENS, SIMON -- read once and referred
   to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to exempting from
   taxation combined heat and power generating equipment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (k) and (l) of subdivision 1, subdivisions 2, 3,
 4  and  5  and paragraph (a) of subdivision 8 of section 487 of the real
 property tax law, paragraph (l) of subdivision 1 as added by chapter 336
 of the laws of 2017, paragraph (k) of subdivision 1 and subdivisions  2,
 3, 4 and paragraph (a) of subdivision 8 as amended by chapter 325 of the
 laws  of  2018,  and  subdivision 5 as amended by section 1 of part X of
 chapter 59 of the laws of 2021, are amended to read as follows:
   (k) "[Micro-combined] COMBINED heat and  power  generating  equipment"
 means  an integrated, cogenerating building heating and electrical power
 generation system, [owned, leased or operated by] SERVING a  residential
 OR  COMMERCIAL  customer, located at such customer's premises, operating
 on any fuel and of any applicable engine, fuel cell, fuel-flexible line-
 ar generator or other technology with a rated capacity of at  least  one
 kilowatt  and  not  more than [ten kilowatts] FIFTEEN MEGAWATTS 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] SIXTY
 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  accordance  with applicable
 government and industry standards, that is  connected  to  the  electric
 system and operated in conjunction with an electric corporation's trans-
 mission   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05196-01-3
              

 A. 2616                             2
 
 include insulated glazing or insulation to the extent that such  materi-
 als exceed the energy efficiency standards established by law.
   (l)  "[Micro-combined]  COMBINED  heat  and power generating equipment
 system" means an arrangement or combination  of  equipment  designed  to
 produce  electrical  energy  and  heat  for  a residential OR COMMERCIAL
 customer on such customer's premises.
   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] COMBINED heat and power  gener-
 ating  equipment  system, electric energy storage equipment and electric
 energy storage system, or fuel-flexible linear generator electric gener-
 ating 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 energy system,
 farm waste energy system, micro-hydroelectric energy system,  fuel  cell
 electric  generating  system,  [micro-combined]  COMBINED heat and power
 generating equipment system, electric energy storage equipment and elec-
 tric 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-hy-
 droelectric   energy  system,  fuel  cell  electric  generating  system,
 [micro-combined] COMBINED heat and power  generating  equipment  system,
 electric energy storage equipment and electric energy storage system, or
 fuel-flexible  linear  generator electronic generating 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. 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] COMBINED heat and power generat-
 ing  equipment  and systems, electric energy storage equipment and elec-
 tric 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), (n), (o) and (p) of  subdivision
 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] COMBINED heat and power  generating  equipment  system,
 electric energy 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
 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
 thirty,  and  (b) micro-hydroelectric energy systems, fuel cell electric
 generating systems, [micro-combined] COMBINED heat and power  generating
 A. 2616                             3
 
 equipment  systems, 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 thirty.
   (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]  COMBINED  heat  and power generating equipment system,
 electric energy storage equipment or electric energy storage system,  or
 fuel-flexible  linear  generator  electric generating 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.
   § 2. This act shall take effect January 1, 2024.