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.
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.
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.