Source: https://www.nysenate.gov/legislation/bills/2017/s7418/amendment/a
Timestamp: 2019-09-16 02:06:02
Document Index: 644641489

Matched Legal Cases: ['§ 487', '§ 487', '§ 487', '§ 487', '§ 3', '§ 4', '§ 487', '§ 487', '§  2', '§ 4']

NY State Senate Bill S7418A
senate Bill S7418A
Authorizes a tax exemption for certain energy systems
Archive: Last Bill Status Via A9651 - Signed by Governor
Get Status Alerts for S7418A
Nov 05, 2018 signed chap.325
3rd reading cal.399
substituted for s7418b
Jun 18, 2018 substituted by a9651b
May 30, 2018 amended on third reading 7418b
Mar 05, 2018 amended on third reading 7418a
Feb 06, 2018 1st report cal.399
Jan 17, 2018 referred to local government
A9651B
S7418A
S7418 - Details
S7418 - Summary
Authorizes a tax exemption for certain energy systems; includes fuel-flexible linear generator among other energy systems which are exempt from taxation.
S7418 - Sponsor Memo
BILL NUMBER: S7418           REVISED MEMO 02/08/2018
to authorizing an exemption from taxation for certain energy systems
This bill would add "linear generation" to the various energy equipment
and systems that are eligible for certain real property tax exemptions.
The bill amends subdivision 1 of § 487 of the Real Property Tax Law
(RPTL) to define the terms "linear generator electric generating equip-
ment" and "linear generator electric generating systems" (also referred
to as "linear generators" and adds the latter to the list of systems
that collectively comprise micro-combined heat and power generating
equipment. The bill amends subdivisions 2,3,4,5 and 8 of RPTL § 487 to
add linear generation as an eligible energy system for certain real
property tax exemptions, joining solar, wind, farm waste, micro-hydroe-
lectric, fuel cell, combined heat and power, and electric energy storage
Since its original enactment, § 487 of the RPTL has encouraged the
installation of solar, wind energy and farm waste systems by providing
property owners a real property tax exemption equal to the amount of
assessed value attributable to the installation of those systems. Last
year, the Legislature added micro-hydroelectric, fuel cell, combined
heat and power and electric energy storage systems to the list of energy
systems eligible for the exemption, provided that installation occurred
after January 1, 2018 and prior to January 1, 2025. This bill would add
linear generation - which is a first-in-kind, clean energy technology
that offers the same high efficiency and low emissions as fuel cells -
but which generates clean electricity using a mechanical rather than a
chemical conversion process. As evidenced by last year's chapter, the
Legislature has wisely allowed the marketplace to pick and choose from a
variety of clean and efficient energy technology solutions. By allowing
linear generation to enter the market on a level playing field, New York
will continue its national leadership in promoting efficient, alterna-
tive energy efficient solutions for residential, commercial and small
Notably, in 2016, the Legislature qualified linear generation as a fuel
cell equivalent for the purpose of exemption from the sales and use tax.
This measure would continue to embrace emerging clean energy technolo-
gies and maintain parity by adding linear generation to the § 487 RPTL
Unlike fuel cells, linear generators have variable fuel capability.
They can run on propane instead of natural gas, for example. This tech-
nology is readily available to areas of the state with no access to
S7418 - Bill Text download pdf
AN ACT to amend the real property tax law, in relation to authorizing an
exemption from taxation for certain energy systems
Section  1.  Paragraph (k) of subdivision 1 of section 487 of the real
property tax law, as added by chapter  336  of  the  laws  of  2017,  is
(k)  "Micro-combined  heat  and  power  generating equipment" means an
ation  system,  owned,  leased  or  operated  by a residential customer,
located at such customer's premises, operating on any fuel  and  of  any
applicable  engine, fuel cell, LINEAR GENERATOR or other technology with
a rated capacity of at least one kilowatt and not more  than  ten  kilo-
watts  electric  and any thermal output that has a design total fuel use
efficiency in the production of heat and electricity of  not  less  than
eighty  percent,  and  annually  produces at least two thousand kilowatt
hours of useful energy in the form  of  electricity  that  may  work  in
combination  with supplemental or parallel conventional heating systems,
that is manufactured, installed and operated in accordance with applica-
ble government and industry standards, that is connected to the electric
mission  and  distribution  facilities.  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  not
include  insulated glazing or insulation to the extent that such materi-
amended by adding two new paragraphs (o) and (p) to read as follows:
(O) "LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT" OR "LINEAR GENER-
ATOR"  MEANS  AN INTEGRATED SYSTEM CONSISTING OF OSCILLATORS, CYLINDERS,
ELECTRICITY CONVERSION EQUIPMENT AND ASSOCIATED BALANCE OF PLANT  COMPO-
NENTS  THAT  DIRECTLY  CONVERT THE LINEAR MOTION OF THE OSCILLATORS INTO
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S. 7418                             2
ELECTRICITY AND WHICH HAS A COMBINED RATED CAPACITY OF NOT MORE THAN TWO
THOUSAND KILOWATTS.
(P) "LINEAR GENERATOR ELECTRIC GENERATING SYSTEM" MEANS AN ARRANGEMENT
OR   COMBINATION  OF  LINEAR  GENERATOR  ELECTRIC  GENERATING  EQUIPMENT
DESIGNED TO PRODUCE ELECTRICAL ENERGY FROM LINEAR MOTION CREATED BY  THE
REACTION OF GASEOUS OR LIQUID FUELS, INCLUDING BUT NOT LIMITED TO BIOGAS
§ 3. Subdivisions 2, 3, 4, 5, and 8 of section 487 of the real proper-
ty  tax law, subdivisions 2, 3, 4 and 5 and paragraph (a) of subdivision
8 as amended by chapter 336 of the laws of 2017, and  subdivision  8  as
amended  by  chapter  344  of  the  laws of 2014, are amended to read as
tric generating system, micro-combined heat and power generating  equip-
ment  system, [or] electric energy storage equipment and electric energy
storage system, OR LINEAR GENERATOR ELECTRIC GENERATING 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 energy  system,  farm  waste  energy
system, micro-hydroelectric energy system, fuel cell electric generating
system,  micro-combined heat and power generating equipment system, [or]
electric energy storage equipment and electric energy storage system, OR
LINEAR GENERATOR ELECTRONIC GENERATING SYSTEM for a  period  of  fifteen
tric  generating system, micro-combined heat and power generating equip-
ment system, [or] electric energy storage equipment and electric  energy
storage  system,  OR  LINEAR GENERATOR ELECTRONIC GENERATING SYSTEM also
serve as part of the building structure, the  increase  in  value  which
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 provided by this section is inappli-
cable  to  any  structure  that satisfies the requirements for exemption
under section four hundred eighty-three-e of this title.
equipment  and  systems, micro-combined heat and power generating equip-
ment and systems [and], electric energy storage equipment  and  electric
energy  storage  system, AND LINEAR GENERATOR ELECTRIC GENERATING EQUIP-
MENT AND SYSTEMS described in paragraphs (a), (b), (e), (f),  (g),  (h),
(i),  (j),  (k),  (l), (m) [and], (n), (O) AND (P) of subdivision one of
droelectric energy system, fuel cell electric generating system,  micro-
combined heat and power generating equipment system, [or] electric ener-
gy  storage  equipment  and  electric  energy  storage system, OR LINEAR
GENERATOR ELECTRIC GENERATING 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
S. 7418                             3
ment  systems, [or] electric energy storage equipment or electric energy
storage system, OR LINEAR GENERATOR ELECTRIC GENERATING SYSTEM which are
constructed subsequent to January first, two thousand eighteen and prior
to January first, two thousand twenty-five.
8. (a) 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  either  (i)  that  no
exemption under this section shall be applicable within its jurisdiction
with  respect  to  any  solar or wind energy system or farm waste energy
system which began construction subsequent to  January  first,  nineteen
hundred ninety-one or the effective date of such local law, ordinance or
resolution, whichever is later, and/or (ii) that no exemption under this
section  shall be applicable within its jurisdiction with respect to any
micro-combined heat and power generating equipment system, [or] electric
energy storage equipment or electric energy storage  system,  OR  LINEAR
GENERATOR  ELECTRIC  GENERATING SYSTEM constructed subsequent to January
first, two thousand eighteen 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.
(b)  Construction  of  a  solar  or wind energy system or a farm waste
energy system shall be deemed to have begun upon the full execution of a
contract or interconnection agreement with a utility; provided  however,
that if such contract or interconnection agreement requires a deposit to
be  made,  then  construction  shall  be  deemed  to have begun when the
contract or interconnection agreement is fully executed and the  deposit
is  made.  The owner or developer of such a system shall provide written
notification to the appropriate local jurisdiction or jurisdictions upon
execution of the contract or the interconnection agreement.
§ 4. This act shall take effect January 19, 2019.
S7418A - Details
S7418A - Summary
S7418A - Sponsor Memo
BILL NUMBER: S7418A
This bill would add "fuel-flexible linear generation" to the various
energy equipment and systems that are eligible for certain real property
(RPTL) to define the terms "fuel-flexible linear generator electric
generating equipment" and "fuel-flexible linear generator electric
generating systems" (also referred to as "fuel-flexible linear genera-
tors" and adds the latter to the list of systems that collectively
comprise micro-combined heat and power generating equipment. The bill
amends subdivisions 2,3,4,5 and 8 of RPTL § 487 to add fuel-flexible
linear generation as an eligible energy system for certain real property
tax exemptions, joining solar, wind, farm waste, micro-hydroelectric,
fuel cell, combined heat and power, and electric energy storage systems.
fuel-flexible linear generation - which is a first-in-kind, clean energy
technology that offers the same high efficiency and low emissions as
fuel cells - but which generates clean electricity using a mechanical
rather than a chemical conversion process. As evidenced by last year's
chapter, the Legislature has wisely allowed the marketplace to pick and
choose from a variety of clean and efficient energy technology
solutions. By allowing fuel-flexible linear generation to enter the
market on a level playing field, New York will continue its national
leadership in promoting efficient, alternative energy efficient
solutions for residential, commercial and small industrial applications.
gies and maintain parity by adding fuel-flexible linear generation to
the § 487 exemption.
Unlike fuel cells, fuel-flexible linear generators have variable fuel
capability. They can run on propane instead of natural gas, for example.
This technology is readily available to areas of the state with no
access to natural gas.
S7418A - Bill Text download pdf
7418--A
Section 1. Paragraph (k) of subdivision 1 of section 487 of  the  real
property  tax  law,  as  added  by  chapter  336 of the laws of 2017, is
(k) "Micro-combined heat and  power  generating  equipment"  means  an
integrated,  cogenerating  building  heating and electrical power gener-
ation system, owned, leased  or  operated  by  a  residential  customer,
located  at  such  customer's premises, operating on any fuel and of any
applicable engine, fuel cell, FUEL-FLEXIBLE LINEAR  GENERATOR  or  other
technology  with  a rated capacity of at least one kilowatt and not more
than ten kilowatts electric and any thermal output  that  has  a  design
total  fuel  use efficiency in the production of heat and electricity of
not less than eighty percent, and annually produces at least  two  thou-
sand kilowatt hours of useful energy in the form of electricity that may
work  in  combination with supplemental or parallel conventional heating
systems, that is manufactured, installed and operated in accordance with
electric  system  and  operated  in  conjunction with an electric corpo-
ration's transmission and distribution facilities. 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 not
§  2.  Subdivision  1  of  section 487 of the real property tax law is
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S. 7418--A                          2
(O) "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT"  OR
"FUEL-FLEXIBLE  LINEAR  GENERATOR" MEANS AN INTEGRATED SYSTEM CONSISTING
OF OSCILLATORS, CYLINDERS, ELECTRICITY CONVERSION EQUIPMENT AND  ASSOCI-
ATED BALANCE OF PLANT COMPONENTS THAT DIRECTLY CONVERT THE LINEAR MOTION
OF  THE  OSCILLATORS  INTO  ELECTRICITY  AND  WHICH HAS A COMBINED RATED
CAPACITY OF NOT MORE THAN TWO THOUSAND KILOWATTS.
(P) "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM"  MEANS
AN ARRANGEMENT OR COMBINATION OF FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC
GENERATING  EQUIPMENT  DESIGNED TO PRODUCE ELECTRICAL ENERGY FROM LINEAR
MOTION CREATED BY THE REACTION OF GASEOUS OR LIQUID FUELS, INCLUDING BUT
NOT LIMITED TO BIOGAS AND NATURAL GAS.
ty tax law, subdivisions 2, 3, 4 and 5 and paragraph (a) of  subdivision
8  as  amended  by chapter 336 of the laws of 2017, and subdivision 8 as
amended by chapter 344 of the laws of  2014,  are  amended  to  read  as
2.  Real  property  which includes a solar or wind energy system, farm
storage  system,  OR  FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING
SYSTEM approved in accordance with the provisions of this section  shall
eof by reason of the inclusion of such solar or wind energy system, farm
storage system, OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRONIC  GENERATING
SYSTEM for a period of fifteen years. When a solar or wind energy system
or  components  thereof,  farm  waste energy system, micro-hydroelectric
energy system, fuel cell electric generating system, micro-combined heat
and power generating equipment  system,  [or]  electric  energy  storage
equipment  and  electric  energy storage system, OR FUEL-FLEXIBLE LINEAR
GENERATOR ELECTRONIC GENERATING SYSTEM also serve as part of the  build-
ing structure, the increase in value which 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 provided by this section is inapplicable to any structure that
satisfies  the  requirements  for  exemption  under section four hundred
eighty-three-e of this title.
energy  storage  system,  AND  FUEL-FLEXIBLE  LINEAR  GENERATOR ELECTRIC
GENERATING EQUIPMENT AND SYSTEMS described in paragraphs (a), (b),  (e),
(f), (g), (h), (i), (j), (k), (l), (m) [and], (n), (O) AND (P) of subdi-
droelectric  energy system, fuel cell electric generating system, micro-
gy  storage  equipment  and   electric   energy   storage   system,   OR
FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM shall be enti-
S. 7418--A                          3
tled  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.
which are (i) existing or constructed  prior  to  July  first,  nineteen
hundred  eighty-eight  or  (ii) constructed subsequent to January first,
nineteen hundred ninety-one and prior to  January  first,  two  thousand
storage system, OR FUEL-FLEXIBLE LINEAR  GENERATOR  ELECTRIC  GENERATING
SYSTEM  which  are constructed subsequent to January first, two thousand
eighteen and prior to January first, two thousand twenty-five.
energy storage equipment or electric energy  storage  system,  OR  FUEL-
FLEXIBLE  LINEAR GENERATOR ELECTRIC GENERATING SYSTEM constructed subse-
quent to January first, two thousand eighteen 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
S7418B (ACTIVE) - Details
S7418B (ACTIVE) - Summary
S7418B (ACTIVE) - Sponsor Memo
BILL NUMBER: S7418B
S7418B (ACTIVE) - Bill Text download pdf
7418--B
retaining  its place in the order of third reading -- passed by Senate
applicable  engine,  fuel  cell, FUEL-FLEXIBLE LINEAR GENERATOR or other
technology with a rated capacity of at least one kilowatt and  not  more
than  ten  kilowatts  electric  and any thermal output that has a design
total fuel use efficiency in the production of heat and  electricity  of
not  less  than eighty percent, and annually produces at least two thou-
work in combination with supplemental or parallel  conventional  heating
applicable  government  and industry standards, that is connected to the
electric system and operated in  conjunction  with  an  electric  corpo-
ration's  transmission  and distribution facilities. It does not include
pipes, controls, insulation or other equipment which  are  part  of  the
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S. 7418--B                          2
(O)  "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING EQUIPMENT" OR
"FUEL-FLEXIBLE LINEAR GENERATOR" MEANS AN INTEGRATED  SYSTEM  CONSISTING
OF  OSCILLATORS, CYLINDERS, ELECTRICITY CONVERSION EQUIPMENT AND ASSOCI-
OF THE OSCILLATORS INTO ELECTRICITY  AND  WHICH  HAS  A  COMBINED  RATED
(P)  "FUEL-FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM" MEANS
GENERATING EQUIPMENT DESIGNED TO PRODUCE ELECTRICAL ENERGY  FROM  LINEAR
storage  system, OR FUEL-FLEXIBLE LINEAR GENERATOR ELECTRONIC GENERATING
or components thereof, farm  waste  energy  system,  micro-hydroelectric
and  power  generating  equipment  system,  [or] electric energy storage
equipment and electric energy storage system,  OR  FUEL-FLEXIBLE  LINEAR
GENERATOR  ELECTRONIC GENERATING SYSTEM also serve as part of the build-
shall be equal to the assessed value  attributable  to  such  system  or
components  multiplied  by  the  ratio  of  the incremental cost of such
satisfies the requirements for  exemption  under  section  four  hundred
equipment and systems, farm waste energy equipment and  systems,  micro-
hydroelectric  equipment  and  systems,  fuel  cell  electric generating
equipment and systems, micro-combined heat and power  generating  equip-
ment  and  systems [and], electric energy storage equipment and electric
energy storage  system,  AND  FUEL-FLEXIBLE  LINEAR  GENERATOR  ELECTRIC
GENERATING  EQUIPMENT AND SYSTEMS described in paragraphs (a), (b), (e),
S. 7418--B                          3
gy   storage   equipment   and   electric   energy  storage  system,  OR
tled to any exemption from  taxation  under  this  section  unless  such
system  meets  the  guidelines set by the president of the authority and
ment systems, [or] electric energy storage equipment or electric  energy
SYSTEM which are constructed subsequent to January first,  two  thousand
8.  (a)  Notwithstanding  the  provisions  of  subdivision two of this
section, a county, city, town or village may by local law  or  a  school
education  law  applies,  may  by  resolution provide either (i) that no
with respect to any solar or wind energy system  or  farm  waste  energy
system  which  began  construction subsequent to January first, nineteen
energy  storage  equipment  or  electric energy storage system, OR FUEL-
FLEXIBLE LINEAR GENERATOR ELECTRIC GENERATING SYSTEM constructed  subse-
such local law, ordinance or resolution, whichever is later. A  copy  of
(b) Construction of a solar or wind energy  system  or  a  farm  waste
contract  or interconnection agreement with a utility; provided however,
be made, then construction shall  be  deemed  to  have  begun  when  the
contract  or interconnection agreement is fully executed and the deposit
is made. The owner or developer of such a system shall  provide  written
§ 4. This act shall take effect March 1, 2019.