S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    42
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. BURDICK -- read once and referred to the Commit-
   tee on Real Property Taxation
 
 AN ACT to amend the public service law and the real property tax law, in
   relation to establishing an exemption from taxation for energy-related
   public utility real property related to attaining state climate goals
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The public service law is amended by adding a new section
 28 to read as follows:
   § 28. UTILITY TAX EXEMPTION FOR  ENERGY-RELATED  PUBLIC  UTILITY  REAL
 PROPERTY  RELATED TO ATTAINING STATE CLIMATE GOALS. 1. THE DEPARTMENT IS
 AUTHORIZED AND DIRECTED TO CONSULT WITH THE COMMISSIONER OF TAXATION AND
 FINANCE IN DEVELOPING DEFINITIONS AND GUIDELINES FOR THE ELIGIBILITY FOR
 EXEMPTION OF ENERGY-RELATED PUBLIC UTILITY REAL PROPERTY AS DESCRIBED IN
 SUBDIVISIONS TWO AND THREE OF SECTION FOUR HUNDRED EIGHTY-SEVEN-B OF THE
 REAL PROPERTY TAX LAW. NO ENERGY-RELATED PUBLIC  UTILITY  REAL  PROPERTY
 SHALL  BE  ENTITLED  TO  ANY  EXEMPTION FROM TAXATION UNDER SECTION FOUR
 HUNDRED EIGHTY-SEVEN-B OF THE REAL PROPERTY TAX LAW UNLESS SUCH  PROJECT
 MEETS  THE GUIDELINES SET BY THE COMMISSIONER OF TAXATION AND FINANCE IN
 CONSULTATION WITH THE DEPARTMENT.
   2. THE DEPARTMENT SHALL ENSURE THAT ANY  NET  DECREASE  IN  A  UTILITY
 COMPANY'S  REAL  PROPERTY  TAX  EXPENSE RESULTING FROM THE PROVISIONS OF
 SECTION FOUR HUNDRED EIGHTY-SEVEN-B OF THE REAL PROPERTY TAX  LAW  SHALL
 INURE TO THE BENEFIT OF THE RATEPAYERS OF SUCH COMPANY.
   §  2.  The  real  property  tax law is amended by adding a new section
 487-b to read as follows:
   § 487-B. EXEMPTION FROM TAXATION  FOR  ENERGY-RELATED  PUBLIC  UTILITY
 REAL  PROPERTY  RELATED  TO ATTAINING STATE CLIMATE GOALS. 1. AS USED IN
 THIS SECTION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00111-01-5
              

 A. 42                               2
 
   (A) "ENERGY-RELATED PUBLIC UTILITY REAL PROPERTY" MEANS REAL  PROPERTY
 THAT  IS  OWNED BY A UTILITY CORPORATION AND USED IN THE STORAGE, TRANS-
 MISSION AND DISTRIBUTION OF ELECTRICITY, OR  STEAM  INCLUDING  CONDUITS,
 CABLES,  LINES, WIRES, POLES, MAINS, PIPES, SUBSTATIONS, TANKS, SUPPORTS
 AND  ENCLOSURES  FOR  ELECTRICAL  CONDUCTORS LOCATED ON, ABOVE AND BELOW
 REAL PROPERTY.
   (B) "DEPARTMENT" MEANS THE DEPARTMENT OF PUBLIC SERVICE.
   (C) "UTILITY CORPORATION" SHALL HAVE THE SAME MEANING  AS  DEFINED  IN
 SECTION TWO OF THE PUBLIC SERVICE LAW.
   (D)  "STATE CLIMATE GOALS" SHALL MEAN THE CLIMATE JUSTICE AND EMISSION
 REDUCTION GOALS IN ARTICLE SEVENTY-FIVE OF THE  ENVIRONMENTAL  CONSERVA-
 TION  LAW  AND  THE RENEWABLE ENERGY GOALS IN SECTION SIXTY-SIX-P OF THE
 PUBLIC SERVICE LAW.
   2. ENERGY-RELATED PUBLIC UTILITY REAL PROPERTY, THE PRIMARY PURPOSE OF
 WHICH IS TO AID IN MEETING STATE CLIMATE GOALS,  SHALL  BE  EXEMPT  FROM
 TAXATION,  SPECIAL  AD  VALOREM  LEVIES,  AND  SPECIAL ASSESSMENTS. SUCH
 EXEMPTION SHALL REMAIN IN EFFECT UNTIL SUCH ENERGY-RELATED PUBLIC UTILI-
 TY REAL PROPERTY IS RETIRED AND REMOVED FROM SERVICE.
   3. ENERGY-RELATED PUBLIC UTILITY REAL  PROPERTY  OWNED  BY  A  UTILITY
 CORPORATION PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE PRIMA-
 RY  PURPOSE  OF WHICH IS TO AID IN MEETING STATE CLIMATE GOALS, SHALL BE
 EXEMPT FROM TAXATION, SPECIAL AD VALOREM LEVIES, AND SPECIAL ASSESSMENTS
 TO THE EXTENT OF ANY INCREASE IN THE VALUE  THEREOF  BY  REASON  OF  THE
 INCLUSION OF NEW ENERGY-RELATED PUBLIC UTILITY REAL PROPERTY DESIGNED TO
 MEET  STATE  CLIMATE  GOALS. SUCH EXEMPTION SHALL REMAIN IN EFFECT UNTIL
 SUCH ASSETS OR INSTALLATIONS ARE RETIRED AND REMOVED FROM SERVICE.
   4. THE COMMISSIONER, IN CONSULTATION WITH THE DEPARTMENT, SHALL, AFTER
 NOTICE AND OPPORTUNITY  FOR  PUBLIC  COMMENT,  PROVIDE  DEFINITIONS  AND
 GUIDELINES  FOR  THE  ELIGIBILITY FOR EXEMPTION OF ENERGY-RELATED PUBLIC
 UTILITY REAL PROPERTY DESCRIBED IN SUBDIVISIONS TWO AND  THREE  OF  THIS
 SECTION.  NO  ENERGY-RELATED PUBLIC UTILITY REAL PROPERTY SHALL BE ENTI-
 TLED TO ANY EXEMPTION FROM  TAXATION  UNDER  THIS  SECTION  UNLESS  SUCH
 PROJECT  MEETS  THE  GUIDELINES SET BY THE COMMISSIONER, IN CONSULTATION
 WITH THE DEPARTMENT, AND ALL OTHER APPLICABLE  PROVISIONS  OF  LAW.  THE
 COMMISSIONER,  IN  CONSULTATION  WITH  THE  DEPARTMENT,  SHALL DETERMINE
 ADHERENCE TO SUCH DEFINITIONS AND GUIDELINES FOR  EACH  APPLICATION  AND
 SHALL CERTIFY OR WITHHOLD CERTIFICATION FOR EACH APPLICATION.
   5.  SUCH  EXEMPTION SHALL BE GRANTED UPON APPLICATION BY THE OWNER AND
 CERTIFICATION BY THE COMMISSIONER, IN CONSULTATION WITH THE  DEPARTMENT.
 SUCH  APPLICATION BY THE OWNER OF THE ENERGY-RELATED PUBLIC UTILITY REAL
 PROPERTY SHALL BE ON A FORM PRESCRIBED AND MADE AVAILABLE BY THE COMMIS-
 SIONER, IN CONSULTATION WITH THE DEPARTMENT. THE APPLICANT SHALL FURNISH
 SUCH INFORMATION AS THE  COMMISSIONER  SHALL  REQUIRE.  THE  APPLICATION
 SHALL  BE  FILED WITH THE ASSESSOR OF THE APPROPRIATE COUNTY, CITY, TOWN
 OR VILLAGE HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE
 THE TAXABLE STATUS DATE OF SUCH COUNTY, CITY, TOWN OR VILLAGE. A COPY OF
 SUCH APPLICATION SHALL BE FILED WITH THE COMMISSIONER WHO SHALL  PROVIDE
 IT TO THE DEPARTMENT.
   6.  THE  ASSESSOR  SHALL APPROVE APPLICATIONS CERTIFIED BY THE COMMIS-
 SIONER.  IN THE EVENT THAT ENERGY-RELATED PUBLIC UTILITY  REAL  PROPERTY
 GRANTED AN EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARI-
 LY FOR ELIGIBLE PURPOSES, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION
 SHALL CEASE.
   7.  ANY  NET DECREASE IN A UTILITY COMPANY'S REAL PROPERTY TAX EXPENSE
 RESULTING FROM THE PROVISIONS OF THIS SECTION SHALL INURE TO THE BENEFIT
 OF THE RATEPAYERS OF SUCH COMPANY.
 A. 42                               3
 
   § 3. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 taxable years beginning on or after such  date.  Effective  immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.