S T A T E   O F   N E W   Y O R K
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    S. 2359--A                                            A. 2609--A

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 16, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment -- recommitted to the Committee on Local Government in accordance
  with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

IN ASSEMBLY -- Introduced by M. of A. THIELE, GOTTFRIED -- read once and
  referred to the Committee on Real Property Taxation -- recommitted  to
  the  Committee  on  Real Property Taxation in accordance with Assembly
  Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the real property tax law, in relation to increasing the
  value  of  the  exemption for certain renewable energy systems or farm
  waste energy systems

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  487  of the real property tax law, as amended by
chapter 515 of the laws of 2002,  paragraph  (e)  of  subdivision  1  as
amended  by chapter 272 of the laws of 2013, subdivision 5 as amended by
chapter 366 of the laws of 2010, subdivisions 6 and 8 as further amended
by section 1 of part W of chapter 56 of the laws of 2010 and subdivision
9 as added by chapter 608 of the laws of 2002, is  amended  to  read  as
follows:
  S  487.  Exemption from taxation for certain [solar or wind] RENEWABLE
energy systems or farm waste energy systems. 1. As used in this section:
  (a) "[Solar or wind] RENEWABLE  energy  equipment"  means  collectors,
controls, energy storage devices, heat pumps and pumps, heat exchangers,
windmills,  and  other materials, hardware or equipment necessary to the
process by which solar radiation,  GEOTHERMAL  ENERGY  or  wind  is  (i)
collected,  (ii)  converted into another form of energy such as thermal,
electrical, mechanical or chemical, (iii) stored,  (iv)  protected  from
unnecessary  dissipation and (v) distributed. 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 include

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06142-02-4

S. 2359--A                          2                         A. 2609--A

insulated glazing or insulation to the extent that such materials exceed
the energy efficiency standards required by law.
  (b)  "[Solar or wind] RENEWABLE energy system" means an arrangement or
combination of solar or wind energy equipment designed to provide  heat-
ing,  cooling,  hot water, or mechanical, chemical, or electrical energy
by the collection of solar, GEOTHERMAL ENERGY or  wind  energy  and  its
conversion, storage, protection and distribution.
  (c)  "Authority" means the New York state energy research and develop-
ment authority.
  (d) ["Incremental cost" means the increased cost of a  solar  or  wind
energy  system  or  farm  waste energy system or component thereof which
also serves as part of the building structure, above  that  for  similar
conventional  construction,  which  enables  its  use as a solar or wind
energy or farm waste energy system or component.
  (e)] "Farm waste electric generating equipment" means  equipment  that
generates   electric  energy  from  biogas  produced  by  the  anaerobic
digestion of agricultural waste, such as livestock manure, farming waste
and food processing wastes with a rated capacity of not  more  than  one
thousand  kilowatts  that is (i) manufactured, installed and operated in
accordance with  applicable  government  and  industry  standards,  (ii)
connected  to  the  electric  system and operated in conjunction with an
electric corporation's transmission and distribution  facilities,  (iii)
operated in compliance with the provisions of section sixty-six-j of the
public  service  law,  (iv)  fueled at a minimum of ninety percent on an
annual basis by biogas produced from the anaerobic digestion of agricul-
tural waste such as livestock manure materials, crop residues  and  food
processing  wastes,  and  (v)  fueled  by  biogas generated by anaerobic
digestion with at least fifty percent by weight of its  feedstock  being
livestock manure materials on an annual basis.
  [(f)]  (E) "Farm waste energy system" means an arrangement or combina-
tion of farm waste electric generating  equipment  or  other  materials,
hardware  or  equipment  necessary  to the process by which agricultural
waste biogas is produced, collected, stored, cleaned, and converted into
forms of energy such as thermal, electrical, mechanical or chemical  and
by  which  the  biogas  and converted energy are distributed on-site. It
does not include pipes, controls, insulation or  other  equipment  which
are part of the normal heating, cooling or insulation system of a build-
ing.
  2.  Real  property  which  includes a [solar or wind] RENEWABLE energy
system or farm waste energy  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] RENEWABLE energy system or farm waste energy system for
a period of fifteen years.   When a [solar  or  wind]  RENEWABLE  energy
system  or  components thereof or farm waste energy system also serve as
part of the building structure, the [increase in value which] TOTAL COST
OF THE SYSTEM 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 SHALL BE EQUAL
TO THE TOTAL COST OF THE SYSTEM. SUCH EXEMPTION SHALL BE SUBTRACTED FROM
THE TOTAL ASSESSED VALUE OF THE REAL PROPERTY.  THE TOTAL  EXEMPTION  IN
NO CASE SHALL EXCEED FIFTY THOUSAND DOLLARS. WHERE THE MUNICIPALITY DOES
NOT  TAX AT FULL VALUE, SUCH EXEMPTION SHALL BE PRO-RATED BASED UPON THE
APPLICABLE EQUALIZATION RATE.

S. 2359--A                          3                         A. 2609--A

  3. The president of the authority shall provide definitions and guide-
lines for the eligibility for exemption of the [solar and wind]  RENEWA-
BLE  energy  equipment  and  systems and farm waste energy equipment and
systems described in paragraphs (a) and (b) of subdivision one  of  this
section.
  4.  No  [solar  or  wind] RENEWABLE energy system or farm waste energy
system shall be entitled 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 [solar or wind] RENEWABLE energy systems or farm  waste  energy
systems which are (a) existing or constructed prior to July first, nine-
teen  hundred  eighty-eight  or  (b)  constructed  subsequent to January
first, nineteen hundred ninety-one and prior to January first, two thou-
sand [fifteen] TWENTY-FOUR.
  6. Such exemption shall be granted only upon application by the  owner
of  the  real  property  on  a form prescribed and made available by the
commissioner in cooperation with  the  authority.  The  applicant  shall
furnish such information as the commissioner shall require. The applica-
tion  shall  be filed with the assessor of the appropriate county, city,
town or village on or before the taxable status  date  of  such  county,
city,  town  or  village. A copy of such application shall be filed with
the authority.
  7. If the assessor is satisfied that the applicant is entitled  to  an
exemption pursuant to this section, he or she shall approve the applica-
tion  and  enter  the  taxable assessed value of the parcel for which an
exemption has been granted pursuant to this section  on  the  assessment
roll  with  the  taxable  property,  with the amount of the exemption as
computed pursuant to subdivision two  of  this  section  in  a  separate
column. In the event that real property granted an exemption pursuant to
this  section  ceases  to  be  used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
  8. 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  that  no  exemption  under  this
section  shall be applicable within its jurisdiction with respect to any
[solar or wind] RENEWABLE energy system  or  farm  waste  energy  system
constructed  subsequent to January first, nineteen hundred ninety-one 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.
  9. (a) A county, city, town, village  or  school  district,  except  a
school  district  under article fifty-two of the education law, that has
not acted to remove the exemption under this  section  may  require  the
owner  of  a  property which includes a [solar or wind] RENEWABLE energy
system which meets the requirements of subdivision four of this section,
to enter into a contract for payments in lieu of  taxes.  Such  contract
may require annual payments in an amount not to exceed the amounts which
would otherwise be payable but for the exemption under this section.
  (b)  The  payment  in  lieu of a tax agreement shall not operate for a
period of more than fifteen years, commencing in each instance from  the
date  on which the benefits of such exemption first become available and
effective.
  S 2. This act shall take effect immediately.