Relates to the assessment of solar or wind energy systems

• Democratic18
• Republican2

◆ The sponsor's argument

Why Pete Harckham says this is needed

New York is in the midst of an affordability crisis. Incentivizing and encouraging the expansion of wind and solar projects expands access to cheap and reliable wind and solar energy to all New Yorkers, yet the financial viability of these projects is threatened by the lack of clar- ity surrounding the appraisal methodology currently used in New York. Also, the urgent transition to clean energy and meeting ambitious renew- able energy goals are crucial steps in combating climate change, the scale and severity of which is widely known, and deeply felt, here in New York State. The predictable and stable taxation for renewable energy projects is necessary to ensure the financial viability of wind and solar develop- ments. The Albany County Supreme Court's recent decision, in Airey, et al. v. State of New York, that ruled the Department of Taxation and Finance exceeded the powers granted by the Legislature and ruled section 575-b of the Real Property Tax Law unconstitutional. This ruling has created great uncertainty over how to value and assess renewable energy projects in New York State, resulting in increased risk and exposure to both renewable energy developers and local taxing jurisdictions. This uncertainty disincentivizes investments in the solar and wind sector, delaying critically needed projects that will help New York transition to renewable energy sources. The implementation of a reliable appraisal model will fill in the current gaps and further New York's progress towards its affordability and clean energy goals. It is important that the uncertainty created by the recent court deci- sion be quickly resolved because NYSERDA is expected to issue a solic- itation for Large-Scale Renewables within the next few months. Without the predictability of the tax assessment model, renewable energy project developers will have to estimate future tax costs at an increased rate over the life of their projects, which will lead to increased bid/Renewable Energy Certificate (REC) prices, and potentially higher electric costs. Even if a "stay" is granted in the court case, the uncertainty isn't resolved, since "stays" are temporary, and project developers are bidding based on the full 20 year life of a REC contract. This bill will clarify the issues raised by the court, and will stabi- lize REC bid prices this year, and for future years.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.