Section 22-601
§ 22-601 Definitions. When used in this chapter the following terms
shall have the following meanings:
(a) "Commercial development pressure areas."
(1) The area delineated by a line beginning at the point of
intersection of the Manhattan, Queens and Brooklyn borough lines and
running easterly along the Queens borough line to the center line of
Greenpoint Avenue; thence easterly along the center line of Greenpoint
Avenue to the center line of Review Avenue; thence northerly along the
center line of Review Avenue to the center line of Borden Avenue; thence
easterly along the center line of Borden Avenue to the center line of
Van Dam Street; thence northerly along the center line of Van Dam Street
to the center line of Skillman Avenue; thence easterly along the center
line of Skillman Avenue to the center line of Honeywell Street; thence
northerly along the center line of Honeywell Street to the center line
of Northern Boulevard; thence southwesterly along the center line of
Northern Boulevard to the center line of Fortieth Road; thence westerly
along the center line of Fortieth Road to the center line of
Twenty-ninth Street; thence southerly along the center line of
Twenty-ninth Street to the center line of Forty-first Avenue; thence
westerly along the center line of Forty-first Avenue to the Queens
borough line; thence southerly along the Queens borough line to the
point of beginning; and
(2) The area delineated by a line beginning at the point of
intersection of the Brooklyn borough line and the center line of Fulton
Street and running southerly along the center line of Fulton Street to
the center line of Prospect Street; thence easterly along the center
line of Prospect Street to the center line of Adams Street; thence
southerly along the center line of Adams Street to the center line of
Tillary Street; thence easterly along the center line of Tillary Street
to the center line of Duffield Street; thence northerly along the center
line of Duffield Street to the Brooklyn borough line; thence westerly
along the Brooklyn borough line to the point of beginning.
(b) "Eligible areas." All areas of the city except (i) with respect to
a person relocating therefrom, those designated as commercial
development pressure areas in subdivision (a) of this section, and (ii)
the area lying south of the center line of 96th Street, in the borough
of Manhattan.
(c) "Eligible charges", "eligible public utility service charges" and
"eligible on-site cogenerator charges". (1)(i) Eligible charges are
charges for energy services purchased from a utility or from a vendor of
energy services at a rate or rates established pursuant to an order or
rule of the New York state public service commission or the federal
energy regulatory commission, other than charges for the purchase of the
commodity of natural gas or electricity, and shall include applicable
rate reductions for economic development or similar purposes, and all
taxes payable thereon and shall exclude charges in accordance with
paragraph two of this subdivision.
(ii) Eligible public utility service charges are actual charges for
energy services made by a public utility service, and shall include all
taxes payable thereon, and shall exclude charges in accordance with
paragraph two of this subdivision, provided, however, that the
commissioner of small business services may by rule adjust eligible
public utility charges for purposes of adjusting the special rebate
based thereon to an amount that would be comparable to the special
rebate available to a comparable customer of a utility as determined by
such commissioner.
(iii) Except as otherwise provided in paragraph five of subdivision
(a) of section 22-602 of this chapter with respect to eligible on-site
cogenerators certified before July first, two thousand three, and clean
on-site cogenerators certified after June thirtieth, two thousand three,
eligible on-site cogenerator charges are charges for energy services
purchased from a utility related to the delivery of natural gas to an
on-site cogenerator at rates established pursuant to an order or rule of
the New York state public service commission or the federal energy
regulatory commission, and shall include applicable rate reductions for
economic development or similar purposes, and all taxes payable thereon
and shall exclude charges in accordance with paragraph two of this
subdivision.
(2) (i) Eligible charges, eligible public utility service charges,
and, except as otherwise provided in paragraph five of subdivision (a)
of section 22-602 of this chapter with respect to eligible on-site
cogenerators certified before July first, two thousand three and clean
on-site cogenerators certified after June thirtieth, two thousand three,
eligible on-site cogenerator charges shall not include the following
charges: (A) any special charges on bills relating to energy services,
including, but not limited to, collection charges, late payment charges
or excess distribution charges, or any additional fee charged by a
vendor of energy services to an eligible energy user, qualified eligible
energy user or on-site cogenerator for energy services, as authorized by
subdivision (d) of this section; (B) charges for such energy services
that are resold; and (C) charges for energy services used for heating
the premises.
(ii) Eligible charges and eligible public utility service charges
shall not include charges for energy services used in the production of
electricity.
(iii) Eligible on-site cogenerator charges shall not include charges
made by a utility for energy services relating to the sale or delivery
of natural gas used by an on-site cogenerator to generate electricity
used by any user not located on the same site as the on-site cogenerator
or by any user for purposes of heating any premises.
(d) "Eligible energy user." Any non-residential user of energy
services, except a government agency, public benefit corporation, or
instrumentality thereof, hotel, retail vendor or energy intensive
facility, as defined in this section, that:
(1) takes occupancy of non-residential premises after May third,
nineteen hundred eighty-five, for which it has, after such date, entered
into a written agreement to buy or lease, provided that such premises
are located in an eligible area and that such premises are a replacement
for premises previously occupied by such energy user for a continuous
period of twenty-four months during the thirty-month period immediately
preceding such user's taking occupancy, which previously occupied
premises were: (i) outside an eligible area, or (ii) within a commercial
development pressure area, provided that such replacement premises are
not located in a commercial development pressure area; or
(2) occupies, operates or manages specially eligible premises as
defined in this section.
Eligible energy users shall not include an occupant of premises
contained within a commercial development pressure area that have been
used principally for manufacturing activities at any time during the
twelve-month period prior to such occupant's taking occupancy unless
such occupant uses such premises principally for manufacturing
activities or such user takes occupancy of such premises after June
thirtieth, two thousand. In addition, an occupant of premises described
in paragraph one or two of this subdivision shall not be an eligible
energy user unless: (i) the energy services used and electricity or
natural gas consumed by such occupant at such premises are individually
and accurately metered and billed so as to enable a determination of the
occupant's usage of energy services, natural gas or electricity; and
(ii) for any occupant purchasing energy services, natural gas or
electricity from a vendor of energy services, (A) the price charged by
such vendor for such energy services, electricity and natural gas shall
be no higher than the price that would have been charged such occupant
directly by a utility pursuant to the applicable tariffs of the New York
state public service commission or the federal energy regulatory
commission, provided that an additional fee, not exceeding twelve
percent of such price, may be charged by such vendor, and (B) the price,
charges, fees (if any) and other terms and conditions for the sale of
such energy services, electricity or natural gas to such occupant are
clearly and separately set forth in a written contract or lease
agreement between such occupant and such vendor, and such vendor shall
separately state in each bill for such services, electricity and natural
gas the price, charges and fees (if any) that are included in such bill
and the amount of the special rebate made to such occupant or that no
special rebate has been made.
(e) "Hotel." A building or portion of it which is regularly used and
kept open as such for the lodging of guests. The term "hotel" includes
an apartment hotel, a motel, boarding house or club, whether or not
meals are served.
(f) "Manufacturing activity." An activity involving the assembly of
goods to create a different article, the processing or fabrication or
packaging of goods.
(g) "Discount." The amount of a reduction in a bill for energy
services rendered to a vendor of energy services or a public utility
service by a utility in accordance with the requirements of section
22-602 of this chapter equal to the special rebates made by such vendor
or public utility service to eligible energy users.
(h) "Retail Vendor." Any person, including any corporation or other
business entity which is predominantly engaged in the sale, other than
through the mail, of tangible personal property to any person, for any
purpose unrelated to the trade or business of such person, or which is
predominantly engaged in selling services to individuals which services
generally involve the physical, mental and/or spiritual care of such
individuals, or the physical care of the personal property of such
person unrelated to the trade or business of such person, provided
however, where such sale of tangible personal property or services is
performed only by one or more operating units, divisions or subdivisions
of any person, only such operating units, divisions or subdivisions
shall come within the definition contained herein.
(i) "Specially eligible premises."
(1) Non-residential premises that are wholly contained in property
that is eligible to obtain benefits under part four or part five of
subchapter two of chapter two of title eleven of this code, or would be
eligible to receive benefits under such chapter except that such
property is exempt from real property taxation and the requirements of
paragraph two of subdivision g of section 11-259 of this code, or the
requirements of subparagraph (b) of paragraph two of subdivision e of
section 11-270 of this code, whichever is applicable, have not been
satisfied, provided that application for such benefits was made after
May third, nineteen hundred eighty-five and prior to July first, two
thousand thirteen, that construction or renovation of such premises was
described in such application, that such premises have been
substantially improved by such construction or renovation so described,
that the minimum required expenditure as defined in such part four or
part five, whichever is applicable, has been made, and that such real
property is located in an eligible area; or
(2) non-residential premises that are wholly contained in real
property that has obtained approval after May third, nineteen hundred
eighty-five and prior to November first, two thousand for financing by
the city industrial development agency established pursuant to section
nine hundred seventeen of the general municipal law, provided that such
financing has been used in whole or in part to substantially improve
such premises (by construction or renovation), and that expenditures
have been made for improvements to such real property in excess of
twenty per centum of the value at which such real property was assessed
for tax purposes for the tax year in which such improvements commenced,
and that such real property is located in an eligible area; or
(3) non-residential premises that are wholly contained in real
property that has obtained approval after October thirty-first, two
thousand and prior to July first, two thousand thirteen for financing by
an industrial development agency established pursuant to article
eighteen-A of the general municipal law, provided that such financing
has been used in whole or in part to substantially improve such premises
(by construction or renovation), and that expenditures have been made
for improvements to such real property in excess of ten per centum of
the value at which such real property was assessed for tax purposes for
the tax year in which such improvements commenced, that such
expenditures have been made within thirty-six months after the earlier
of (i) the issuance by such agency of bonds for such financing, or (ii)
the conveyance of title to such property to such agency, and that such
real property is located in an eligible area; or
(4) non-residential premises that are wholly contained in real
property owned by the city of New York or the New York state urban
development corporation, or a subsidiary thereof, a lease for which was
approved in accordance with the applicable provisions of the charter and
such approval was obtained after May third, nineteen hundred eighty-five
and prior to November first, two thousand, provided, however that such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to such real property (by construction or renovation) in excess of
twenty per centum of the value at which such real property was assessed
for tax purposes for the tax year in which such improvements commenced,
and that such real property is located in an eligible area; or
(5) non-residential premises that are wholly contained in real
property owned by such city or the New York state urban development
corporation, or a subsidiary thereof, a lease for which was approved in
accordance with the applicable provisions of the charter of such city or
by the board of directors of such corporation, and such approval was
obtained after October thirty-first, two thousand and prior to July
first, two thousand thirteen, provided, however, that such premises were
constructed or renovated subsequent to such approval, that expenditures
have been made subsequent to such approval for improvements to such real
property (by construction or renovation) in excess of ten per centum of
the value at which such real property was assessed for tax purposes for
the tax year in which such improvements commenced, that such
expenditures have been made within thirty-six months after the effective
date of such lease, and that such real property is located in an
eligible area; or
(6) non-residential premises contained in real property not located in
an eligible area that otherwise meet the criteria of paragraph one, two,
three, four or five of this subdivision, where such premises shall be
used primarily for manufacturing activities and provided that such
premises shall be improved as a result of expenditures in an amount in
excess of ten per centum of the assessed value of such real property
attributable to such premises at which such real property was assessed
for tax purposes for the tax year in which such improvements commenced,
except that the required expenditures for improvements to property
eligible to obtain benefits under part five of subchapter two of chapter
two of title eleven of this code shall be the amount that an applicant
must expend on construction work for a project in order to qualify for
benefits as provided in such part five. Attribution of value shall be
made in accordance with the rules and regulations of the mayor. Only
expenditures for improvements that have been identified as part of the
construction or reconstruction project meeting the requirements of
paragraph one, two, three, four or five of this subdivision, whichever
is applicable, shall qualify for purposes of satisfying the minimum
expenditure requirements of this subdivision. Notwithstanding the
foregoing, for purposes of applying the criteria of this subdivision,
the reference to May third, nineteen hundred eighty-five contained in
paragraphs one, two and four of this subdivision shall be deemed a
reference to May first, nineteen hundred eighty-six.
(7) provided, however, that no such premises described in paragraph
one, two, three, four, five or six of this subdivision, contained in a
newly constructed structure or building, shall come within this
definition unless such premises meet the requirements of the New York
state energy conservation construction code promulgated pursuant to
article eleven of the energy law.
(j) "Special rebate." The amount of a reduction in a bill rendered by
a utility, a public utility service or a vendor of energy services for
energy services to an eligible energy user or a qualified eligible
energy user, or an agent of either, or an on-site cogenerator or a clean
on-site cogenerator; and calculated in accordance with the applicable
provisions of section 22-602 of this chapter and the rules of the
department of small business services.
(k) "Vendor of energy services." Any person, corporation or other
entity not subject to the jurisdiction and general supervision of the
New York state public service commission that furnishes or sells energy
services to an eligible energy user, a qualified eligible energy user or
an on-site cogenerator as an incident to leasing, subleasing, licensing
or otherwise permitting such user to rent or occupy premises of such
vendor.
(l) "Empowerment zone". Empowerment zone shall mean an area within the
city of New York that has been designated as an empowerment zone
pursuant to the Omnibus Budget Reconciliation Act of 1993.
(m) "Public utility service". A service established by the city of New
York pursuant to article fourteen-A of the general municipal law,
including the New York city public utility service.
(n) "Empire zone." An area within the city that has been designated as
an empire zone pursuant to article eighteen-B of the general municipal
law.
(o) "Utility". A person that provides energy services within the city
of New York and is subject to the jurisdiction and general supervision
of the New York state public service commission and to a tax imposed by
such city under chapter eleven of title eleven of the code, except that
the Long Island Power Authority, or its subsidiary, is a utility under
this subdivision to the extent that it provides energy services within
the city of New York and makes a payment to such city that is equivalent
to the tax imposed on utilities pursuant to chapter eleven of title
eleven of the code.
(p) "Energy conservation measures". The construction, alteration,
repair or improvement to a building or separate leased space within a
building or to equipment affixed to, contained in, or on the grounds of
a building, which reduces energy consumption.
(q) "Simple payback period". The number of years necessary to recoup
the cost of an energy conservation measure through annual energy cost
savings.
(r) "Qualified eligible energy user". (1) A user of energy services
that would have qualified as an eligible energy user under paragraph one
of subdivision (d) of this section if the reference to May third,
nineteen hundred eighty-five were deemed a reference to December
thirty-first, nineteen hundred ninety, and that (i) agrees to expand the
number of its full-time employees, within two years from the date of
certification, by fifty employees or ten percent of the number of its
full-time employees as of January first, nineteen hundred ninety-one,
whichever is greater; provided, however, that one economically
disadvantaged or unemployed person hired as a full-time employee after
the date of certification shall be counted as two full-time employees
and two part-time employees shall be counted as one full-time employee;
and provided, further, that the mayor may define by rule full-time
employees, part-time employees, unemployed persons, economically
disadvantaged persons, and criteria for continued eligibility in
relation to fluctuations in employment levels; or (ii) develops,
implements, and maintains, in consultation with the New York city
department of social services, the department of small business services
or the New York city department of youth and community development, a
job training program which shall be certified and monitored by any one
of such departments and which shall meet the standards for such programs
as are established by the rules of the mayor; or
(2) Any non-residential user of energy services, except a government
agency, public benefit corporation, or instrumentality thereof, hotel or
retail vendor as defined in this section, that occupies, operates or
manages targeted eligible premises.
An occupant of targeted eligible premises described in paragraph one
or two of this subdivision shall not be a qualified eligible energy user
unless the energy services used by such occupant at such premises are
individually and accurately metered and billed so as to enable a
determination of the occupant's usage of such energy services to be
made.
(s) "Targeted eligible premises". (1) non-residential premises that
are wholly contained in property that is eligible to obtain benefits
under part four of subchapter two of chapter two of title eleven, or
would be eligible to receive benefits under such chapter except that
such property is exempt from real property taxation and the requirements
of paragraph two of subdivision g of section 11-259 of the code have not
been satisfied, provided that application for such benefits was made
after December thirty-first, nineteen hundred ninety and prior to
November first, two thousand, that construction or renovation of such
premises was described in such application, that such premises have been
substantially improved by such construction or renovation so described,
that twice the minimum required expenditure as defined in such chapter
has been made, and that such real property is located in an eligible
area; or
(2) non-residential premises that are wholly contained in real
property which has obtained approval after December thirty-first,
nineteen hundred ninety and prior to November first, two thousand for
financing by an industrial development agency established pursuant to
section nine hundred seventeen of the general municipal law, provided
that such financing has been used in whole or in part to substantially
improve such premises by construction or renovation, and that
expenditures have been made for improvements to such real property in
excess of forty per centum of the value at which such real property was
assessed for tax purposes for the tax year in which such improvements
commenced, and that such real property is located in an eligible area;
or
(3) non-residential premises that are wholly contained in real
property owned by the city or the New York state urban development
corporation, or a subsidiary thereof, a lease for which was approved in
accordance with the applicable provisions of the charter, and such
approval was obtained after December thirty-first, nineteen hundred
ninety and prior to November first, two thousand, provided that such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to such real property by construction or renovation in excess of forty
per centum of the value at which such real property was assessed for tax
purposes for the tax year in which such improvements commenced, and that
such real property is located in an eligible area; or
(4) non-residential premises contained in real property not located in
an eligible area that otherwise meet the criteria of paragraph one, two
or three of this subdivision, where such premises shall be used
primarily for manufacturing activities and provided that such premises
shall be improved as a result of expenditures in an amount in excess of
twenty per centum of the assessed value of such real property
attributable to such premises at which such real property was assessed
for tax purposes for the tax year in which such improvements commenced.
Attribution of value shall be made in accordance with the rules of the
mayor. Only expenditures for improvements that have been identified as
part of the construction or renovation project meeting the requirements
of paragraph one, two or three of this subdivision, whichever is
applicable, shall qualify for purposes of satisfying the minimum
expenditure requirements of this subdivision.
Provided, however, that no such premises described in paragraph one,
two, three or four of this subdivision, contained in a newly constructed
structure or building, shall come within this definition unless such
premises meet the requirements of the New York state energy conservation
construction code promulgated pursuant to article eleven of the energy
law. And provided, further, that (i) the qualified eligible energy user
shall submit on an annual basis proof that the heating and cooling
systems within the premises continue to meet the performance standards
specified in section 7813.21 of the energy conservation construction
code, or such predecessor section to which the premises, when
constructed or substantially renovated, were subject and (ii) to the
extent that the cost of motors or lighting equipment described in
sections 7813.52 and 7813.53 of the energy conservation construction
code is included as part of the minimum expenditures required in
paragraph one, two, three or four of this subdivision, the qualified
eligible energy user shall certify that all such compatible equipment
with a simple payback period of five years or less has been installed.
(t) "Energy services". The transmission and distribution of
electricity or gas, and such other services that are associated with
such transmission and distribution as shall be designated as energy
services by rule of the commissioner of small business services as such
commissioner deems necessary to promote economic development, provided
that energy services shall not include the commodity of gas or
electricity.
(u) "On-site cogenerator". A person, other than a utility, that owns
an electric generating facility that simultaneously or sequentially
produces electricity and useful thermal energy, provided that
substantially all of such electricity shall be used by an eligible
energy user that occupies the same site as such generating facility. An
on-site cogenerator may be the same or a separate person as such
eligible energy user.
(v) "Clean on-site cogenerator". An on-site cogenerator, the
electricity generating facility of which has an emission rate for
nitrous oxides of no more than three tenths of one pound per megawatt
hour. The commissioner of the department of small business services
shall establish by rule a megawatt hour equivalent for any useful
thermal energy produced by the cogenerator for purposes of determining
benefits under this chapter.
Section 22-602
§ 22-602 Requirement of special rebates and discounts. (a)(1)
Utilities that provide energy services within the city of New York shall
be required to make special rebates to eligible energy users and on-site
cogenerators certified after June thirtieth, two thousand three, other
than clean on-site cogenerators, and to make discounts to vendors of
energy services and the New York public utility service as follows:
(i) a utility that sells energy services to an eligible energy user
shall be required to make a special rebate to such eligible energy user
equal to the product of the applicable percentage specified for special
rebates in the schedule contained in paragraph four of this subdivision
and the eligible charges for such energy services.
(ii) a utility that delivers natural gas to an on-site cogenerator,
other than a clean on-site cogenerator, that uses such gas to produce
electricity used by an eligible energy user, which cogenerator and user
are certified after June thirtieth, two thousand three, shall be
required to make a special rebate to such on-site cogenerator equal to
the product of the applicable percentage specified for special rebates
in the schedule contained in paragraph four of this subdivision and the
eligible on-site cogenerator charges for the energy services related to
such delivery of such gas.
(iii) a utility that sells energy services to a vendor of energy
services shall be required to make a discount to such vendor in an
amount equal to the sum of the special rebates certified to such utility
by such vendor as having been made by such vendor to eligible energy
users in accordance with subparagraphs (i) through (iii) of paragraph
three of this subdivision.
(iv) a utility that sells energy services to a public utility service
shall be required to make a discount to such public utility service in
an amount equal to the sum of the special rebates and discounts
certified to such utility by such public utility service as having been
made by such public utility service in accordance with subparagraphs (i)
through (iii) of paragraph two of this subdivision.
(2) A public utility service providing energy services within the city
of New York shall be required to make special rebates to eligible energy
users and qualified eligible energy users and discounts to vendors of
energy services as follows:
(i) where, pursuant to a written agreement between a public utility
service and the power authority of the state of New York, such public
utility service sells energy services to an eligible energy user that
has been individually approved by such power authority and certified
pursuant to subdivision (c) of this section prior to November first, two
thousand, such special rebate shall be in the amount or amounts derived
by calculating the full amount of the special rebate to which such
eligible energy user would have been entitled pursuant to the schedule
contained in paragraph four of this subdivision for eligible charges
relating to the purchase of such energy services had such eligible
energy user purchased such energy services directly from the utility and
subtracting from such full amount the difference between the eligible
charges relating to the purchase of such energy services had such
eligible energy user purchased the energy services directly from the
utility and the eligible public utility service charges relating to the
purchase of such energy services actually charged to such eligible
energy user by such public utility service for actual purchases of
energy services from such public utility service; except that (A) in no
event shall the amount of such special rebate exceed the amount of the
special rebate to which such eligible energy user would have been
entitled pursuant to the schedule contained in paragraph four of this
subdivision had such eligible energy user purchased the energy services
directly from the utility at the price charged by such utility, and (B)
for any monthly billing period where the calculation of such special
rebate results in a negative number, the amount of such special rebate
shall be deemed to be zero.
(ii) where, pursuant to a written agreement between a public utility
service and the power authority of the state of New York, such public
utility service (A) sells energy services to an eligible energy user
that has been individually approved by such power authority and
certified pursuant to subdivision (c) of this section after October
thirty-first, two thousand, or (B) sells energy services to a qualified
eligible energy user that has been individually approved by such power
authority and certified pursuant to subdivision (c) of this section
prior to November first, two thousand, such special rebate shall be the
product of the applicable percentage for special rebates specified in
the schedule contained in paragraph four of this subdivision and the
eligible public utility service charges for such energy services.
(iii) a public utility service that sells energy services to a vendor
of energy services shall be required to make a discount to such vendor
of energy services equal to the sum of the special rebates certified to
such public utility service by such vendor as having been made by such
vendor to eligible energy users or qualified eligible energy users to
which such vendor of energy services has resold such energy services in
accordance with subparagraphs (i) through (iii) of paragraph three of
this subdivision.
(3) Vendors of energy services may elect to provide a special rebate
against an eligible energy user's, qualified eligible energy user's or
on-site cogenerator's bill for energy services as follows:
(i) in the case of a vendor of energy services that sells energy
services provided by a utility to an eligible energy user, such special
rebate shall be the product of the applicable percentage specified for a
special rebate in the schedule contained in paragraph four of this
subdivision and the eligible charges for such sales of energy services
made by such vendor of energy services.
(ii) in the case of a vendor of energy services that delivers natural
gas to an on-site cogenerator that is other than a clean on-site
cogenerator and that uses such gas to produce electricity used by an
eligible energy user, which cogenerator and user are certified after
June thirtieth, two thousand three, such special rebate shall be equal
to the product of the applicable percentage specified in the schedule
contained in paragraph four of this subdivision and the eligible on-site
cogenerator charges for the energy services related to such delivery of
such gas.
(iii) in the case of a vendor of energy services that sells energy
services provided by a public utility service to a qualified eligible
energy user that was certified prior to November first, two thousand, or
to an eligible energy user that was certified after October
thirty-first, two thousand, such special rebate shall be the product of
the applicable percentage specified for a special rebate in the schedule
contained in paragraph four of this subdivision and the eligible public
utility service charges for sales of energy services made by such vendor
of energy services.
(4) For purposes of determining special rebates for energy services
relating to electricity and natural gas under the provisions of this
subdivision, the applicable percentages are as follows:
Months Following Applicable % for Applicable % for
Certification Natural Gas Electricity
first through ninety-sixth 35% 45%
ninety-seventh through 28% 36%
one hundred eighth
one hundred ninth 21% 27%
through one
hundred twentieth
one hundred twenty-first 14% 18%
through one hundred
thirty-second
one hundred thirty-third 7% 9%
through one hundred
forty-fourth
; provided, however, that the commissioner of the department of small
business services may increase such percentages at the commissioner's
discretion in order to maintain the special rebate at levels comparable
to those historically provided under the program, pursuant to rules that
are generally applicable to distinct classes of energy users.
(5) A utility that delivers natural gas to an on-site cogenerator that
produces electricity for an eligible energy user, which cogenerator and
user are certified before July first, two thousand three, or to a clean
on-site cogenerator that produces electricity for an eligible energy
user, shall be required to make special rebates against the energy bill
rendered to such on-site cogenerator or clean on-site cogenerator by
such utility for the sale or delivery, or both, of such gas in the
amount or amounts derived by taking the product of a base adjustment
multiplied by an eligibility factor, multiplied by the number of
kilowatt hours of electricity produced by such on-site cogenerator or
clean on-site cogenerator and used by such eligible energy user during
the billing period, excluding charges for natural gas used to generate
electricity used for heating any premises or by any energy user not
located on the same site, any special charges on such bill, including
but not limited to, collection charges, late payment charges, excess
distribution charges, and charges for energy which is resold; where the
base adjustment shall equal three cents increased by nine one-hundredths
cent each January first occurring after December thirty-first, nineteen
hundred eighty-seven, and ending on June thirtieth, two thousand three,
and the eligibility factor shall equal one hundred percent during the
first eight years after initial certification as an eligible energy user
as defined in paragraphs one and two of subdivision (d) of section
22-601 of this chapter, eighty percent during the ninth such year, sixty
percent during the tenth such year, forty percent during the eleventh
such year and twenty percent during the twelfth and final such year,
such years to be calculated in accordance with the provisions of this
section, provided that the number of kilowatt hours on which the total
of the special rebates payable to a clean on-site cogenerator is based
in any year pursuant to this paragraph shall not exceed thirteen million
one hundred forty thousand.
(6) Notwithstanding any provision of this subdivision, the special
rebates and discounts provided by the Long Island Power Authority, or
its subsidiary, pursuant to this subdivision shall not exceed the amount
of the payment made by or on behalf of such authority to the city of New
York as a payment that is equivalent to the tax imposed by such city
pursuant to chapter eleven of title eleven of the code. Special rebates
and discounts shall be reduced and/or allocated proportionate to the
benefit they would otherwise be eligible for among eligible energy
users, public utility services, vendors of energy services, and on-site
cogenerators where necessary to comply with this paragraph pursuant to
rules of the commissioner of the department of small business services.
(7) Notwithstanding any provisions of this subdivision, special
rebates and discounts shall not exceed ten thousand dollars per year per
employee or full-time equivalent with respect to applications certified
pursuant to this chapter after June thirtieth, two thousand three.
(b) Eligible energy users meeting the criteria in paragraph one of
subdivision (d) and qualified eligible energy users meeting the criteria
in paragraph one of subdivision (r) of section 22-601 of this chapter
shall be eligible for special rebates for a period not to exceed one
hundred forty-four months calculated from the beginning of the month
immediately following their date of certification of eligibility.
Eligible energy users meeting the criteria of paragraph two of
subdivision (d) of section 22-601 of this chapter shall be eligible for
special rebates for a period calculated from the beginning of the month
immediately following their date of certification for so long as they
remain in occupancy in the specially eligible premises, but not beyond
the period of one hundred forty-four months from the beginning of the
month immediately following the date of certification of the first
eligible energy user occupying such specially eligible premises. The
amounts of rebates made to such an eligible energy user meeting the
criteria of such paragraph two shall be determined in accordance with
the schedule contained in paragraph four of subdivision (a) of this
section as if such eligible energy user had been certified at the same
time as such first eligible energy user was certified. A qualified
eligible energy user that takes occupancy of targeted eligible premises
shall be eligible for special rebates for a period calculated from the
beginning of the month immediately following its date of certification
as a qualified eligible energy user for so long as it remains in
occupancy in the targeted eligible premises, but not beyond the period
of one hundred forty-four months from the beginning of the month
immediately following the date of certification of the first qualified
eligible energy user occupying such targeted eligible premises. The
amounts of rebates made to a qualified eligible energy user that takes
occupancy of targeted eligible premises shall be determined in
accordance with the schedule contained in paragraph four of subdivision
(a) of this section as if such qualified eligible energy user had been
certified at the same time as such first qualified eligible energy user
was certified. An on-site cogenerator or clean on-site cogenerator shall
be eligible for special rebates for a period not to exceed the period
during which the eligible energy user served by such on-site cogenerator
or clean on-site cogenerator would have been eligible for a special
rebate under the provisions of this subdivision had it purchased energy
services directly from a utility.
(c) (1) No eligible energy user, qualified eligible energy user,
on-site cogenerator, clean on-site cogenerator or special eligible
energy user shall receive a rebate pursuant to this chapter until it has
obtained a certification as an eligible energy user, qualified eligible
energy user, on-site cogenerator, clean on-site cogenerator or special
eligible energy user, respectively, from the commissioner of small
business services. No such certification for a qualified eligible energy
user shall be issued on or after July first, two thousand three. No such
certification of any other eligible energy user, on-site cogenerator or
clean on-site cogenerator shall be issued on or after July first, two
thousand thirteen. The commissioner of small business services, after
notice and hearing, may revoke a certification issued pursuant to this
subdivision where it is found that eligibility criteria have not been
met or that compliance with conditions for continued eligibility has not
been maintained. The corporation counsel may maintain a civil action to
recover an amount equal to any benefits improperly obtained.
(2) A utility and a vendor of energy services shall keep records of
all transactions subject to this article and make such records available
to the department of small business services.
(d) (1) Utilities subject to the provisions of subdivision (a) of this
section shall reduce each bill for energy services or natural gas for
each eligible energy user, vendor of energy services, on-site
cogenerator or clean on-site cogenerator as follows:
(i) a bill for the sale and delivery of natural gas rendered to an
on-site cogenerator or clean on-site cogenerator entitled to a special
rebate pursuant to the provisions of paragraph five of subdivision (a)
of this section shall be reduced by the full amount of the special
rebate that shall have accrued for the period covered by each such bill;
(ii) a bill for energy services rendered to any other eligible energy
user or on-site cogenerator shall be reduced by the full amount of the
special rebate that shall have accrued for the period covered by each
such bill.
(iii) a bill for energy services rendered to a vendor of energy
services that has provided a special rebate to an eligible energy user
or on-site cogenerator shall be reduced by such utility in accordance
with paragraph three of subdivision (a) of this section by the aggregate
amount of all such special rebates;
(iv) provided, however, such utility shall not be required to provide
a special rebate or discount in an amount that exceeds the amount of
such bill for the sale and delivery of natural gas rendered to an
on-site cogenerator or clean on-site cogenerator entitled to a special
rebate pursuant to the provisions of paragraph five of subdivision (a)
of this section or, in the case of any other eligible energy user or
on-site cogenerator, the amount of such bill for energy services, and
provided, further, that no utility subject to the provisions of
subdivision (a) of this section shall be required to carry forward on
its books and records any special rebate or discounts not made in
accordance with this sentence to such bills for subsequent periods. Such
discount shall be made within four months from the time certification of
special rebates is made in accordance with subparagraph (iii) or (iv) of
paragraph one of subdivision (a) of this section. Such amount shall be
separately stated and shown on each bill.
(2) A public utility service that provides special rebates for
eligible energy users or qualified eligible energy users shall reduce
each bill rendered to each such user by the full amount of the special
rebate that shall have accrued for the period covered by each such bill
in accordance with paragraph two of subdivision (a) of this section.
Such amounts shall be separately stated and shown on such bills.
(3) Each such vendor of energy services that has elected to provide
special rebates for eligible energy users, qualified eligible energy
users or on-site cogenerators shall reduce each bill rendered to each
such energy user or cogenerator by the full amount of the special rebate
that shall have accrued for the period covered by each such bill in
accordance with paragraph three of subdivision (a) of this section. Such
amounts shall be separately stated and shown on such bills.
(e) The commissioner of small business services shall, for the purpose
of calculating eligible charges, eligible public utility service charges
and eligible on-site cogenerator charges, promulgate rules to determine
that portion of such charges that shall be deemed attributable to energy
services or natural gas used for heating the premises. He or she shall,
in addition, promulgate any other rules and regulations necessary to
effectuate the purposes of this chapter, including rules to determine
the extent to which charges are eligible charges, eligible public
utility service charges or eligible on-site cogenerator charges and
rules to provide for such administrative charges or fees as are
necessary to defray expenses in administering the special rebates and
discounts provided pursuant to this chapter.
Section 22-603
* § 22-603 Construction. Nothing contained in this title shall be
construed as reducing the amount of a receipt for sales tax purposes
under any of the sales taxes imposed or authorized by article
twenty-eight or twenty-nine of the tax law, or as reducing the gross
income of the gross operating income subject to tax pursuant to chapter
eleven of title eleven of this code. The burden of establishing
eligibility to receive the benefits of this chapter shall rest with the
party claiming such benefits.
* NB Added L.L. 54/85 § 6, language juxtaposed per Ch. 907/85 § 14
* NB Number supplied by the Legislative Bill Drafting Commission
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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