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A00260 Summary:

BILL NOA00260
 
SAME ASSAME AS S04069
 
SPONSORPaulin
 
COSPNSRTitone, Rivera, Otis, Moya, Gottfried, Crespo, Colton, Cahill, Barrett, Abinanti, Crouch, Walker, Hunter, Sepulveda
 
MLTSPNSRBuchwald, Cook, Magee, Thiele
 
Amd 487, RPT L
 
Relates to the exemption from taxation for micro-hydroelectric energy systems, fuel cell electric generating systems, or micro-combined heat and power generating equipment systems.
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A00260 Actions:

BILL NOA00260
 
01/05/2017referred to real property taxation
01/31/2017reported referred to ways and means
06/06/2017reported referred to rules
06/15/2017reported
06/15/2017rules report cal.360
06/15/2017ordered to third reading rules cal.360
06/19/2017passed assembly
06/19/2017delivered to senate
06/19/2017REFERRED TO RULES
06/21/2017SUBSTITUTED FOR S4069
06/21/20173RD READING CAL.459
06/21/2017PASSED SENATE
06/21/2017RETURNED TO ASSEMBLY
10/11/2017delivered to governor
10/23/2017signed chap.336
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A00260 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A260
 
SPONSOR: Paulin (MS)
  TITLE OF BILL: An act to amend the real property tax law, in relation to exemption from taxation for certain energy systems   PURPOSE OF THE BILL: The bill would encourage the installation of micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generating equipment systems, and electric energy storage equip- ment and systems by extending to those systems eligibility for certain real property tax exemptions available under existing law to solar, wind and farm waste energy systems.   SUMMARY OF PROVISIONS: Section 1 of the bill would amend subdivisions 2, 3 and 4 of section 487 of the real property tax law ("RPTL") by extending to micro-hydroelec- tric energy systems, fuel cell electric generating systems, micro-com- bined heat and power generating equipment systems, and electric energy storage equipment and systems certain exemptions from real property taxation that are available under current law to solar and wind energy systems and farm waste energy systems. Section 2 of the bill would add to subdivision 1 of section 487 of the RPTL the following new definitions: "micro-hydroelectric energy equip- ment", "micro-hydroelectric energy system", "fuel cell electric generat- ing equipment", "fuel cell electric generating system", "micro-combined heat and power generating equipment", "micro-combined heat and power generating equipment system", "electric energy storage equipment", and "electric energy storage system". Section 3 of the bill would amend subdivision 5 of section 487 of the RPTL by providing that the exemption would be available to micro-hydroe- lectric energy systems, fuel cell electric generating systems, micro- combined heat and power generating equipment systems and electric energy storage equipment and systems constructed after January 1, 2018 and prior to January 1, 2025. Section 4 of the bill would amend subdivision 8 of section 487 of the RPTL to provide that a municipality or school district may opt out of the tax exemption with respect either to solar, wind and farm waste systems constructed subsequent to January 1, 1991, the renewable energy systems added to law through this bill, or both. Section 5 of the bill provides an effective date of January 1, 2018.   JUSTIFICATION: Existing law encourages the installation of solar, wind energy and farm waste energy systems by providing property owners a real property tax exemption equal to the amount of assessed value attributable to the installation of those systems. This bill encourages the installation of micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generating equipment systems, and electric energy storage equipment and systems by extending the same property tax exemption to those systems constructed after the effective date of the bill and prior to January 1, 2025. The inclusion of addi- tional types of renewable energy systems will encourage the installation of those systems in areas or on properties where solar, wind and farm waste technologies are not feasible or are less appropriate.   FISCAL IMPLICATIONS: None.   PRIOR LEGISLATIVE HISTORY: A.1872-C, 2015 and 2016 passed Assembly. Same as S.4750-C, 2015 and 2016 referred to local governments. A.9528, 2014 referred to real property taxation. Same as S.7204, 2014 committed to rules.   EFFECTIVE DATE: January 1, 2018.
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A00260 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           260
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 5, 2017
                                       ___________
 
        Introduced  by  M.  of A. PAULIN, TITONE, RIVERA, OTIS, MOYA, GOTTFRIED,
          CRESPO, COLTON, CAHILL, BARRETT, ABINANTI, CROUCH  --  Multi-Sponsored
          by  -- M. of A.  BUCHWALD, COOK, LOPEZ, MAGEE, THIELE -- read once and
          referred to the Committee on Real Property Taxation
 
        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,  micro-combined  heat and power generating
    10  equipment system, or electric  energy  storage  equipment  and  electric
    11  energy storage system approved in accordance with the provisions of this
    12  section  shall  be exempt from taxation to the extent of any increase in
    13  the value thereof by reason of the inclusion of such solar or wind ener-
    14  gy system [or], farm waste  energy  system,  micro-hydroelectric  energy
    15  system,  fuel  cell  electric generating system, micro-combined heat and
    16  power generating equipment system, or electric energy storage  equipment
    17  and  electric energy storage system for a period of fifteen years.  When
    18  a solar or wind energy system or components  thereof  [or],  farm  waste
    19  energy  system,  micro-hydroelectric  energy  system, fuel cell electric
    20  generating system, micro-combined heat and  power  generating  equipment
    21  system, or electric energy storage equipment and electric energy storage
    22  system  also  serve  as  part of the building structure, the increase in
    23  value which shall be exempt from taxation shall be equal to the assessed
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01687-01-7

        A. 260                              2
 
     1  value attributable to such system or components multiplied by the  ratio
     2  of  the  incremental cost of such system or components to the total cost
     3  of such system or components. The exemption provided by this section  is
     4  inapplicable  to  any  structure  that  satisfies  the  requirements for
     5  exemption under section four hundred eighty-three-e of this title.
     6    3. The president of the authority shall provide definitions and guide-
     7  lines for the eligibility for exemption of the  solar  and  wind  energy
     8  equipment  and  systems  [and], farm waste energy equipment and systems,
     9  micro-hydroelectric equipment and systems, fuel cell electric generating
    10  equipment and systems, micro-combined heat and power  generating  equip-
    11  ment  and  systems  and  electric  energy storage equipment and electric
    12  energy storage system described in paragraphs (a) [and], (b), (e),  (f),
    13  (g),  (h),  (i),  (j),  (k), (l), (m) and (n) of subdivision one of this
    14  section.
    15    4. No solar or wind energy system  [or],  farm  waste  energy  system,
    16  micro-hydroelectric energy system, fuel cell electric generating system,
    17  micro-combined  heat  and power generating equipment system, or electric
    18  energy storage equipment and electric energy  storage  system  shall  be
    19  entitled  to  any exemption from taxation under this section unless such
    20  system meets the guidelines set by the president of  the  authority  and
    21  all other applicable provisions of law.
    22    §  2.  Subdivision  1  of  section 487 of the real property tax law is
    23  amended by adding eight new paragraphs (g), (h), (i), (j), (k), (l), (m)
    24  and (n) to read as follows:
    25    (g) "Micro-hydroelectric energy equipment" means  any  energy  storage
    26  device,  penstock,  turbine, generator and other materials, hardware and
    27  equipment necessary to the process by which the flow of stream or  river
    28  water  or water from other water bodies is (i) converted into electrical
    29  energy; (ii) protected from unnecessary dissipation; and (iii)  distrib-
    30  uted. It does not include pipes, controls, insulation or other equipment
    31  which are part of the normal heating, cooling, or insulation system of a
    32  building.  It  does  not  include insulated glazing or insulation to the
    33  extent that such materials exceed the energy efficiency standards estab-
    34  lished by law.
    35    (h) "Micro-hydroelectric energy system" means an arrangement or combi-
    36  nation of micro-hydroelectric energy equipment designed to provide elec-
    37  trical energy by the use of flowing water. It does  not  include  pipes,
    38  controls,  insulation  or  other  equipment which are part of the normal
    39  heating, cooling, or insulation  system  of  a  building.  It  does  not
    40  include  insulated glazing or insulation to the extent that such materi-
    41  als exceed the energy efficiency standards established by law.
    42    (i) "Fuel cell electric generating equipment"  means  a  solid  oxide,
    43  molten  carbonate, proton exchange membrane or phosphoric acid fuel cell
    44  with a combined rated capacity of not more than two thousand  kilowatts.
    45  It  does  not include insulated glazing or insulation to the extent that
    46  such materials exceed the energy  efficiency  standards  established  by
    47  law.
    48    (j)  "Fuel  cell  electric  generating system" means an arrangement or
    49  combination of equipment designed to produce electrical  energy  through
    50  reaction  of  chemicals,  including but not limited to hydrogen, oxygen,
    51  methane and natural gas.
    52    (k) "Micro-combined heat and  power  generating  equipment"  means  an
    53  integrated,  cogenerating  building  heating and electrical power gener-
    54  ation system, owned, leased  or  operated  by  a  residential  customer,
    55  located  at  such  customer's premises, operating on any fuel and of any
    56  applicable engine, fuel cell or other technology with a  rated  capacity

        A. 260                              3
 
     1  of  at  least  one kilowatt and not more than ten kilowatts electric and
     2  any thermal output that has a design total fuel use  efficiency  in  the
     3  production  of heat and electricity of not less than eighty percent, and
     4  annually  produces at least two thousand kilowatt hours of useful energy
     5  in the form of electricity that may work  in  combination  with  supple-
     6  mental  or  parallel conventional heating systems, that is manufactured,
     7  installed and operated in  accordance  with  applicable  government  and
     8  industry  standards,  that is connected to the electric system and oper-
     9  ated in conjunction with  an  electric  corporation's  transmission  and
    10  distribution facilities. It does not include pipes, controls, insulation
    11  or  other  equipment  which  are part of the normal heating, cooling, or
    12  insulation system of a building. It does not include  insulated  glazing
    13  or  insulation to the extent that such materials exceed the energy effi-
    14  ciency standards established by law.
    15    (l) "Micro-combined heat and power generating equipment system"  means
    16  an  arrangement  or  combination  of equipment designed to produce elec-
    17  trical energy and heat for a residential  customer  on  such  customer's
    18  premises.
    19    (m)  "Electric  energy  storage equipment" means a set of technologies
    20  capable of storing electric energy and releasing that energy as electric
    21  power at a later time. Electric energy storage  technologies  may  store
    22  energy  as  potential,  kinetic, chemical or thermal energy, that can be
    23  released as electric power and include, but are not limited to,  various
    24  types  of  batteries,  flywheels, electrochemical capacitors, compressed
    25  air storage and thermal storage devices.
    26    (n) "Electric energy storage system" means an arrangement or  combina-
    27  tion of equipment designed to store electrical energy in electric energy
    28  storage equipment and release electric power at a later time.
    29    §  3.  Subdivision  5  of section 487 of the real property tax law, as
    30  amended by chapter 344 of the laws  of  2014,  is  amended  to  read  as
    31  follows:
    32    5. The exemption granted pursuant to this section shall only be appli-
    33  cable  to  (a) solar or wind energy systems or farm waste energy systems
    34  which are [(a)] (i) existing or constructed prior to July  first,  nine-
    35  teen  hundred eighty-eight or [(b)] (ii) constructed subsequent to Janu-
    36  ary first, nineteen hundred ninety-one and prior to January  first,  two
    37  thousand  twenty-five,  and (b) micro-hydroelectric energy systems, fuel
    38  cell electric generating systems, micro-combined heat and power generat-
    39  ing equipment systems, or electric energy storage equipment or  electric
    40  energy storage system which are constructed subsequent to January first,
    41  two  thousand  eighteen and prior to January first, two thousand twenty-
    42  five.
    43    § 4. Paragraph (a) of subdivision 8 of section 487 of the real proper-
    44  ty tax law, as amended by chapter 344 of the laws of 2014, is amended to
    45  read as follows:
    46    (a) Notwithstanding the provisions of subdivision two of this section,
    47  a county, city, town or village may by local law or a  school  district,
    48  other than a school district to which article fifty-two of the education
    49  law  applies,  may  by  resolution  provide either (i) that no exemption
    50  under this section shall be  applicable  within  its  jurisdiction  with
    51  respect  to  any solar or wind energy system or farm waste energy system
    52  which began construction subsequent to January first,  nineteen  hundred
    53  ninety-one  or the effective date of such local law, ordinance or resol-
    54  ution, whichever is later, and/or (ii)  that  no  exemption  under  this
    55  section  shall be applicable within its jurisdiction with respect to any
    56  micro-hydroelectric energy system, fuel cell electric generating system,

        A. 260                              4

     1  micro-combined heat and power generating equipment system,  or  electric
     2  energy  storage  equipment or electric energy storage system constructed
     3  subsequent to January first, two thousand eighteen or the effective date
     4  of  such local law, ordinance or resolution, whichever is later.  A copy
     5  of any such local law or resolution shall be filed with the commissioner
     6  and with the president of the authority.
     7    § 5. This act shall take effect January 1, 2018.
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