BILL NUMBER: S5504
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the agriculture and markets law, in relation to payments
associated with the conversion of land subject to an agricultural
assessment by virtue of oil or gas exploration or extraction activity or
solar development
 
PURPOSE:
To provide an exemption from tax payments for renewable land develop-
ment.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Subdivision 5 of section 301 of the agriculture and markets
law, as amended by chapter 565 of the laws of 2003, is amended.
Section 2: Subparagraph (iv) of paragraph d of subdivision 1 of section
305 of the agriculture and markets law, as amended by chapter 565 of the
laws of 2003, is amended.
Section 3: Paragraph c of subdivision 2 of section 306 of the agricul-
ture and markets law, as amended by chapter 565 of the laws of 2003, is
amended.
Section 4: The commissioner of agriculture and markets, in consultation
with the commissioner of environmental conservation and the New York
state energy research and development authority, shall within one
hundred eighty days of the effective date of this section, make regu-
lations regarding the conversion of lands subject to an agricultural
assessment by virtue solar development.
Section 5: This act shall take effect on the sixtieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.
 
EXISTING LAW:
Currently, there is a property tax exemption for activities related to
the exploration, development, and extraction of oil, gas, and wind.
Solar development is currently not included.
 
JUSTIFICATION:
Through the Climate Leadership and Community Protection Act (CLCPA), New
York has committed to an ambitious goal of net zero greenhouse gas emis-
sions by 2050. In addition, the CLCPA sets a generation target of 100%
emissions-free energy by 2040, with 6000 megawatts of solar energy
generation by 2025.
The agricultural districts law currently incentivizes oil, natural gas,
and wind energy exploration by allowing a property tax exemption for
that purpose. Solar development does not enjoy the same exemption. By
adding solar and removing oil and natural gas, this exemption would both
incentivize the continued use of such agricultural land as a renewable
resource and allow farmers to transition more marginal or unusable land
to a productive use that protects the environment while providing farm-
ers with an additional source of income.
The CLCPA sets a target of achieving a carbon-free energy system by
2040, with an interim goal of generating 70 percent of the state's elec-
tricity needs from renewable resources by 2030. Reaching these ambitious
targets requires a substantial increase in renewable generation, includ-
ing solar. Agriculture is a strong partner in the effort to protect the
environment and address climate change. It is very important to incen-
tivize development of lands within the state towards renewable sources
of energy, and the conversion of lands with marginal soil quality
presents a unique opportunity to create new solar generation while
protecting productive farmland and good soil quality in the state.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S4853
2021-22: S4100 - REFERRED TO AGRICULTURE
2019/20 S7603- REFERRED TO AGRICULTURE
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This at shall take effect on the sixtieth day after it shall have become
a law. Effective immediately, the addition, amendment, and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date are authorized to be made and completed on or before
such effective date.

Statutes affected:
S5504: 301 agriculture and markets law, 301(5) agriculture and markets law, 305 agriculture and markets law, 305(1) agriculture and markets law, 306 agriculture and markets law, 306(2) agriculture and markets law