Legislative Memos

Memorandum in Support S.2448-B (Maziarz) / A.6644-A (Simotas)

March 10, 2014

S.2448-B (Maziarz) / A.6644-A (Simotas)- AN ACT to amend the tax law, in relation to exempting the sale or lease and installation of commercial fuel cell electric generating equipment or the sale of electricity generated by such equipment from state sales and compensating use tax and granting municipalities the option to grant such exemption

The Independent Power Producers of New York, Inc. (IPPNY) is a trade association representing companies involved in the development of electric generating facilities, the generation, sale, and marketing of electric power, and the development of natural gas facilities in the State of New York. IPPNY Member companies produce over 75 percent of New York’s electric power.

IPPNY is supportive of S.2448-B (Maziarz) / A.6644-A (Simotas). This legislation intends to expand the fuel diversity of New York State’s electricity supply mix by providing an exemption from the sales and use tax for receipts related to certain actions involving fuel cell electric generating systems equipment. IPPNY supports a diverse electricity supply mix that includes fuel cells.

According to the New York State Energy Law, the state's energy policy is to obtain and maintain safe, reliable, and diverse energy supplies, accelerate the development and use of renewable energy resources, and increase its energy independence in order to promote the state's economic growth, to maintain the security of its energy supplies, and to protect its environmental values.  New York's existing generating resources are powered by cutting-edge technologies and a wide variety of fuel types such as fuel cells. 

As an extension of that fuel diversity policy, the state has committed to increasing renewable energy supplies. Eligible resources under the New York State Renewable Portfolio Standard include fuel cells. Fuels cells also are among the technologies defined as powering an alternate energy production facility under the New York State Public Service Law.

A diverse energy fuel portfolio protects the reliability of New York's energy system and provides benefits to consumers. In general, the electric system is less reliable if it becomes too dependent on any one fuel source. Given the benefits of its existing fuel-diverse sources of supply, New York State has committed to expanding that mix further.

For the reasons stated above, IPPNY is supportive of S.2448-B (Maziarz) / A.6644-A (Simotas).