Bill Text: NY S06762 | 2017-2018 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes that combined heat and power generating equipment shall be exempt from taxation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-06-18 - referred to real property taxation [S06762 Detail]

Download: New_York-2017-S06762-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6762
                               2017-2018 Regular Sessions
                    IN SENATE
                                      June 16, 2017
                                       ___________
        Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        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:
     1    Section  1. The section heading and subdivisions 2, 3 and 4 of section
     2  487 of the real property tax law, as amended by chapter 515 of the  laws
     3  of  2002,  subdivision 2 as amended by section 3 of part P of chapter 57
     4  of the laws of 2016, are amended to read as follows:
     5    Exemption from taxation for certain [solar or wind energy  systems  or
     6  farm waste] energy systems.
     7    2.  Real  property  which includes a solar or wind energy system [or],
     8  farm waste energy system, micro-hydroelectric energy system,  fuel  cell
     9  electric generating system, combined heat and power generating equipment
    10  system, or electric energy storage equipment and electric energy storage
    11  system  approved in accordance with the provisions of this section shall
    12  be exempt from taxation to the extent of any increase in the value ther-
    13  eof by reason of the inclusion of such solar or wind energy system [or],
    14  farm waste energy system, micro-hydroelectric energy system,  fuel  cell
    15  electric generating system, combined heat and power generating equipment
    16  system, or electric energy storage equipment and electric energy storage
    17  system  for  a  period  of  fifteen years.   When a solar or wind energy
    18  system or components thereof [or], farm waste energy  system,  micro-hy-
    19  droelectric   energy  system,  fuel  cell  electric  generating  system,
    20  combined heat and power generating equipment system, or electric  energy
    21  storage  equipment and electric energy storage system also serve as part
    22  of the building structure, the increase in value which shall  be  exempt
    23  from  taxation shall be equal to the assessed value attributable to such
    24  system or components multiplied by the ratio of the incremental cost  of
    25  such  system  or  components  to the total cost of such system or compo-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01687-04-7
        S. 6762                             2
     1  nents. The exemption provided by this section  is  inapplicable  to  any
     2  structure  that  satisfies  the requirements for exemption under section
     3  four hundred eighty-three-e of this title.
     4    3. The president of the authority shall provide definitions and guide-
     5  lines  for  the  eligibility  for exemption of the solar and wind energy
     6  equipment and systems [and], farm waste energy  equipment  and  systems,
     7  micro-hydroelectric equipment and systems, fuel cell electric generating
     8  equipment  and systems, combined heat and power generating equipment and
     9  systems and electric energy storage equipment and electric energy  stor-
    10  age  system  described in paragraphs (a) [and], (b), (e), (f), (g), (h),
    11  (i), (j), (k), (l), (m) and (n) of subdivision one of this section.
    12    4. No solar or wind energy system  [or],  farm  waste  energy  system,
    13  micro-hydroelectric energy system, fuel cell electric generating system,
    14  combined  heat and power generating equipment system, or electric energy
    15  storage equipment and electric energy storage system shall  be  entitled
    16  to  any  exemption  from  taxation under this section unless such system
    17  meets the guidelines set by the president of the authority and all other
    18  applicable provisions of law.
    19    § 2. Subdivision 1 of section 487 of the  real  property  tax  law  is
    20  amended by adding eight new paragraphs (g), (h), (i), (j), (k), (l), (m)
    21  and (n) to read as follows:
    22    (g)  "Micro-hydroelectric  energy  equipment" means any energy storage
    23  device, penstock, turbine, generator and other materials,  hardware  and
    24  equipment  necessary to the process by which the flow of stream or river
    25  water or water from other water bodies is (i) converted into  electrical
    26  energy;  (ii) protected from unnecessary dissipation; and (iii) distrib-
    27  uted. It does not include pipes, controls, insulation or other equipment
    28  which are part of the normal heating, cooling, or insulation system of a
    29  building. It does not include insulated glazing  or  insulation  to  the
    30  extent that such materials exceed the energy efficiency standards estab-
    31  lished by law.
    32    (h) "Micro-hydroelectric energy system" means an arrangement or combi-
    33  nation of micro-hydroelectric energy equipment designed to provide elec-
    34  trical  energy  by  the use of flowing water. It does not include pipes,
    35  controls, insulation or other equipment which are  part  of  the  normal
    36  heating,  cooling,  or  insulation  system  of  a  building. It does not
    37  include insulated glazing or insulation to the extent that such  materi-
    38  als exceed the energy efficiency standards established by law.
    39    (i)  "Fuel  cell  electric  generating equipment" means a solid oxide,
    40  molten carbonate, proton exchange membrane or phosphoric acid fuel  cell
    41  with  a combined rated capacity of not more than two thousand kilowatts.
    42  It does not include insulated glazing or insulation to the  extent  that
    43  such  materials  exceed  the  energy efficiency standards established by
    44  law.
    45    (j) "Fuel cell electric generating system"  means  an  arrangement  or
    46  combination  of  equipment designed to produce electrical energy through
    47  reaction of chemicals, including but not limited  to  hydrogen,  oxygen,
    48  methane and natural gas.
    49    (k)  "Combined  heat  and  power  generating equipment" means an inte-
    50  grated, cogenerating building heating and  electrical  power  generation
    51  system  serving  a  residential  or commercial customer, located at such
    52  customer's premises, operating on any fuel and of any applicable engine,
    53  fuel cell or other technology with a rated  capacity  of  at  least  one
    54  kilowatt  and  not  more than fifteen megawatts electric and any thermal
    55  output that has a design total fuel use efficiency in the production  of
    56  heat  and  electricity  of  not  less  than  sixty percent, and annually
        S. 6762                             3
     1  produces at least two thousand kilowatt hours of useful  energy  in  the
     2  form  of  electricity  that may work in combination with supplemental or
     3  parallel conventional heating systems, that is  manufactured,  installed
     4  and operated in accordance with applicable government and industry stan-
     5  dards, that is connected to the electric system and operated in conjunc-
     6  tion with an electric corporation's transmission and distribution facil-
     7  ities.  It  does  not  include  pipes,  controls,  insulation  or  other
     8  equipment which are part of the normal heating, cooling,  or  insulation
     9  system  of  a  building.  It does not include insulated glazing or insu-
    10  lation to the extent that such materials exceed  the  energy  efficiency
    11  standards established by law.
    12    (l)  "Combined  heat  and  power generating equipment system" means an
    13  arrangement or combination of equipment designed to  produce  electrical
    14  energy and heat for a residential or commercial customer on such custom-
    15  er's premises.
    16    (m)  "Electric  energy  storage equipment" means a set of technologies
    17  capable of storing electric energy and releasing that energy as electric
    18  power at a later time. Electric energy storage  technologies  may  store
    19  energy  as  potential,  kinetic, chemical or thermal energy, that can be
    20  released as electric power and include, but are not limited to,  various
    21  types  of  batteries,  flywheels, electrochemical capacitors, compressed
    22  air storage and thermal storage devices.
    23    (n) "Electric energy storage system" means an arrangement or  combina-
    24  tion of equipment designed to store electrical energy in electric energy
    25  storage equipment and release electric power at a later time.
    26    §  3.  Subdivision  5  of section 487 of the real property tax law, as
    27  amended by chapter 344 of the laws  of  2014,  is  amended  to  read  as
    28  follows:
    29    5. The exemption granted pursuant to this section shall only be appli-
    30  cable  to  (a) solar or wind energy systems or farm waste energy systems
    31  which are [(a)] (i) existing or constructed prior to July  first,  nine-
    32  teen  hundred eighty-eight or [(b)] (ii) constructed subsequent to Janu-
    33  ary first, nineteen hundred ninety-one and prior to January  first,  two
    34  thousand  twenty-five,  and (b) micro-hydroelectric energy systems, fuel
    35  cell electric generating systems, combined  heat  and  power  generating
    36  equipment  systems,  or  electric  energy  storage equipment or electric
    37  energy storage system which are constructed subsequent to January first,
    38  two thousand eighteen and prior to January first, two  thousand  twenty-
    39  five.
    40    § 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
    41  ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
    42  read as follows:
    43    (a) Notwithstanding the provisions of subdivision two of this section,
    44  a  county,  city, town or village may by local law or a school district,
    45  other than a school district to which article fifty-two of the education
    46  law applies, may by resolution provide  either  (i)  that  no  exemption
    47  under  this  section  shall  be  applicable within its jurisdiction with
    48  respect to any solar or wind energy system or farm waste  energy  system
    49  which  began  construction subsequent to January first, nineteen hundred
    50  ninety-one or the effective date of such local law, ordinance or  resol-
    51  ution,  whichever  is  later,  and/or  (ii) that no exemption under this
    52  section shall be applicable within its jurisdiction with respect to  any
    53  micro-hydroelectric energy system, fuel cell electric generating system,
    54  combined  heat and power generating equipment system, or electric energy
    55  storage equipment or electric energy storage system  constructed  subse-
    56  quent  to  January first, two thousand eighteen or the effective date of
        S. 6762                             4
     1  such local law, ordinance or resolution, whichever is later.  A copy  of
     2  any  such  local  law or resolution shall be filed with the commissioner
     3  and with the president of the authority.
     4    § 5. This act shall take effect January 1, 2018.