N.Y. GCT Law § 25-T — New York Code / Act GCT / Article 2-F / Section 25-T
Authorization to require special rebates and discounts
Status: in_force

§ 25-t. Authorization to require special rebates and discounts. (a)\nAny city having a population of one million or more is hereby authorized\nand empowered to adopt and amend local laws:\n  (1) Requiring utilities that provide energy services within such city\nto make special rebates to eligible energy users and on-site\ncogenerators certified after June thirtieth, two thousand three, other\nthan clean on-site cogenerators, and to make discounts to vendors of\nenergy services and public utility services as follows:\n  (i) a utility that sells energy services to an eligible energy user\nshall be required to make a special rebate to such eligible energy user\nequal to the product of the applicable percentage specified for special\nrebates in the schedule contained in paragraph four of this subdivision\nand the eligible charges for such energy services.\n  (ii) a utility that delivers natural gas to an on-site cogenerator,\nother than a clean on-site cogenerator, that uses such gas to produce\nelectricity used by an eligible energy user, which cogenerator and user\nare certified after June thirtieth, two thousand three, shall be\nrequired to make a special rebate to such on-site cogenerator equal to\nthe product of the applicable percentage specified for special rebates\nin the schedule contained in paragraph four of this subdivision and the\neligible on-site cogenerator charges for the energy services related to\nsuch delivery of such gas.\n  (iii) a utility that sells energy services to a vendor of energy\nservices shall be required to make a discount to such vendor of energy\nservices in an amount equal to the sum of the special rebates certified\nto such utility by such vendor as having been made by such vendor to\neligible energy users in accordance with subparagraphs (i) through (iii)\nof paragraph three of this subdivision.\n  (iv) a utility that sells energy services to a public utility service\nshall be required to make a discount to such public utility service\nequal to the sum of the special rebates and discounts certified to such\nutility by such public utility service as having been made by such\npublic utility service in accordance with subparagraphs (i) through\n(iii) of paragraph two of this subdivision.\n  (2) Requiring a public utility service providing energy services\nwithin such city to make special rebates to eligible energy users and\nqualified eligible energy users and discounts to vendors of energy\nservices as follows:\n  (i) where, pursuant to a written agreement between a public utility\nservice and the power authority of the state of New York, such public\nutility service sells energy services to an eligible energy user that\nhas been individually approved by such power authority and certified\npursuant to subdivision (c) of this section prior to November first, two\nthousand, such special rebate shall be in the amount or amounts derived\nby calculating the full amount of the special rebate to which such\neligible energy user would have been entitled pursuant to the schedule\ncontained in paragraph four of this subdivision for eligible charges\nrelating to the purchase of such energy services had such eligible\nenergy user purchased such energy services directly from the utility and\nsubtracting from such full amount the difference between the eligible\ncharges relating to the purchase of such energy services had such\neligible energy user purchased the energy services directly from the\nutility and the eligible public utility service charges relating to the\npurchase of such energy services actually charged to such eligible\nenergy user by such public utility service for actual purchases of\nenergy services from such public utility service; except that (A) in no\nevent shall the amount of such special rebate exceed the amount of the\nspecial rebate to which such eligible energy user would have been\nentitled pursuant to the schedule contained in paragraph four of this\nsubdivision had such eligible energy user purchased the energy services\ndirectly from the utility at the price charged by such utility, and (B)\nfor any monthly billing period where the calculation of such special\nrebate results in a negative number, the amount of such special rebate\nshall be deemed to be zero.\n  (ii) where, pursuant to a written agreement between a public utility\nservice and the power authority of the state of New York, such public\nutility service (A) sells energy services to an eligible energy user\nthat has been individually approved by such power authority and\ncertified pursuant to subdivision (c) of this section after October\nthirty-first, two thousand, or (B) sells energy services to a qualified\neligible energy user that has been individually approved by such power\nauthority and certified pursuant to subdivision (c) of this section\nprior to November first, two thousand, such special rebate shall be the\nproduct of the applicable percentage for special rebates specified in\nthe schedule contained in paragraph four of this subdivision and the\neligible public utility service charges relating to the purchase of such\nenergy services.\n  (iii) a public utility service that sells energy services to a vendor\nof energy services shall be required to make a discount to such vendor\nof energy services equal to the sum of the special rebates certified to\nsuch public utility service by such vendor as having been made by such\nvendor to eligible energy users or qualified eligible energy users to\nwhich such vendor of energy services has resold such energy services in\naccordance with subparagraphs (i) through (iii) of paragraph three of\nthis subdivision.\n  (3) Permitting vendors of energy services to elect to provide a\nspecial rebate against an eligible energy user's, qualified eligible\nenergy user's or on-site cogenerator's bill for energy services as\nfollows:\n  (i) in the case of a vendor of energy services that sells energy\nservices provided by a utility to an eligible energy user, such special\nrebate shall be the product of the applicable percentage specified for a\nspecial rebate in the schedule contained in paragraph four of this\nsubdivision and the eligible charges relating to such sales of energy\nservices made by such vendor of energy services.\n  (ii) in the case of a vendor of energy services that delivers natural\ngas to an on-site cogenerator that is other than a clean on-site\ncogenerator and that uses such gas to produce electricity used by an\neligible energy user, which cogenerator and user are certified after\nJune thirtieth, two thousand three, such special rebate shall be equal\nto the product of the applicable percentage specified in the schedule\ncontained in paragraph four of this subdivision and the eligible on-site\ncogenerator charges for the energy services related to such delivery of\nsuch gas.\n  (iii) in the case of a vendor of energy services that sells energy\nservices provided by a public utility service to a qualified eligible\nenergy user that was certified before November first, two thousand, or\nto an eligible energy user that was certified after October\nthirty-first, two thousand, such special rebate shall be the product of\nthe applicable percentage specified for a special rebate in the schedule\ncontained in paragraph four of this subdivision and the eligible public\nutility service charges for sales of energy services made by such vendor\nof energy services.\n  (4) For purposes of determining special rebates for sales of energy\nservices under the provisions of this subdivision, the applicable\npercentages are as follows:\nMonths Following                   Applicable % for       Applicable %\nCertification                      Natural Gas            for Electricity\nfirst through ninety-sixth         35%                    45%\nninety-seventh through one         28%                    36%\nhundred eighth\none hundred ninth through one      21%                    27%\nhundred twentieth\none hundred twenty-first           14%                    18%\nthrough one hundred thirty-\nsecond\none hundred thirty-third           7%                     9%\nthrough one hundred forty-\nfourth\n;  provided,  however, that the commissioner of the agency designated by\nlocal law enacted pursuant to this section may increase such percentages\nat the commissioner's discretion in order to maintain the special rebate\nat levels comparable to those historically available under the  program,\npursuant  to  rules that are generally applicable to distinct classes of\nenergy users.\n  (5) Requiring a utility that delivers natural gas to an on-site\ncogenerator that produces electricity for an eligible energy user which\ncogenerator and user are certified before July first, two thousand\nthree, or to a clean on-site cogenerator that produces electricity for\nan eligible energy user and is certified after June thirtieth, two\nthousand three, to make a special rebate against the energy bill\nrendered to such on-site cogenerator or clean on-site cogenerator by\nsuch utility for the sale or delivery, or both, of such gas in the\namount or amounts derived by taking the product of a base adjustment\nmultiplied by an eligibility factor, multiplied by the number of\nkilowatt hours of electricity produced by such on-site cogenerator or\nclean on-site cogenerator and used by such eligible energy user during\nthe billing period, excluding charges for natural gas used to generate\nelectricity used for heating any premises or by any energy user not\nlocated on the same site, any special charges on such bill, including\nbut not limited to, collection charges, late payment charges, excess\ndistribution charges, or any additional fee charged by a vendor of\nenergy services as authorized by this subdivision, and charges for\nenergy which is resold; where the base adjustment shall equal three\ncents increased by nine one-hundredths cent each January first occurring\nafter December thirty-first, nineteen hundred eighty-seven and before\nJune thirtieth, two thousand three, and the eligibility factor shall\nequal one hundred percent during the first eight years after initial\ncertification as an eligible energy user as defined in paragraphs one\nand two of subdivision (a) of section twenty-five-s of this article,\neighty percent during the ninth such year, sixty percent during the\ntenth such year, forty percent during the eleventh such year and twenty\npercent during the twelfth and final such year, such years to be\ncalculated in accordance with the provisions of this section, provided\nthat the number of kilowatt hours on which the total of the special\nrebates payable to a clean on-site cogenerator is based in any year\npursuant to this paragraph shall not exceed thirteen million one hundred\nforty thousand.\n  (6) Any local law enacted pursuant to this section shall contain a\nprovision or provisions allowing for a credit against the amount of such\ntax imposed pursuant to authority contained in subdivision (a) of\nsection twelve hundred one of the tax law by such city upon such\nutilities in the amounts of the special rebates and discounts made by\nsuch utilities.\n  (7) Notwithstanding any provisions of this subdivision, the special\nrebates and discounts provided by the Long Island Power Authority, or\nits subsidiary, pursuant to this subdivision shall not exceed the amount\nof the payment made by or on behalf of such authority to such city as a\npayment that is equivalent to the tax imposed by such city pursuant to\nthis subdivision of section twelve hundred one of the tax law. Special\nrebates and discounts shall be reduced and/or allocated proportionate to\nthe benefit they would otherwise be eligible for among eligible energy\nusers, public utility services, vendors of energy services, and on-site\ncogenerators where necessary to comply with this paragraph pursuant to\nrules of the commissioner of the agency designated by local law enacted\npursuant to this section.\n  (8) Notwithstanding any provisions of this subdivision, special\nrebates and discounts shall not exceed ten thousand dollars per year per\nemployee or full-time equivalent with respect to applications submitted\npursuant to this article after June thirtieth, two thousand three.\n  (b) Eligible energy users meeting the criteria contained in paragraph\none of subdivision (a) of this section and qualified eligible energy\nusers meeting the criteria contained in paragraph one of subdivision (r)\nof section twenty-five-s of this article shall be eligible for special\nrebates for a period not to exceed one hundred forty-four months\ncalculated from the beginning of the month immediately following their\ndate of certification of eligibility. Eligible energy users meeting the\ncriteria contained in paragraph two of subdivision (a) of section\ntwenty-five-s of this article shall be eligible for special rebates for\na period calculated from the beginning of the month immediately\nfollowing their date of certification for so long as they remain in\noccupancy in the specially eligible premises, but not beyond the period\nof one hundred forty-four months from the beginning of the month\nimmediately following the date of certification of the first eligible\nenergy user occupying such specially eligible premises. The amounts of\nrebates made to such an eligible energy user meeting the criteria\ncontained in such paragraph two shall be determined in accordance with\nthe schedule contained in paragraph four of subdivision (a) hereof as if\nsuch eligible energy user had been certified at the same time as such\nfirst eligible energy user was certified. A qualified eligible energy\nuser that takes occupancy of targeted eligible premises shall be\neligible for special rebates for a period calculated from the beginning\nof the month immediately following its date of certification as a\nqualified eligible energy user for so long as it remains in occupancy in\nthe targeted eligible premises, but not beyond the period of one hundred\nforty-four months from the beginning of the month immediately following\nthe date of certification of the first qualified eligible energy user\noccupying such targeted eligible premises. The amounts of rebates made\nto a qualified eligible energy user that takes occupancy of targeted\neligible premises shall be determined in accordance with the schedule\ncontained in paragraph four subdivision (a) of this section as if such\nqualified eligible energy user had been certified at the same time as\nsuch first qualified eligible energy user was certified. An on-site\ncogenerator or clean on-site cogenerator shall be eligible for special\nrebates for a period not to exceed the period during which the eligible\nenergy user served by such on-site cogenerator or clean on-site\ncogenerator would have been eligible for a special rebate under the\nprovisions of this subdivision had it purchased energy services directly\nfrom a utility.\n  (c) (1) The city agency designated in the local law enacted pursuant\nto this section may adopt such rules as the agency deems necessary to\npromote economic development and to effectuate the purposes of this\narticle, including rules to determine the extent to which charges are\neligible charges, eligible public utility service charges, eligible\non-site cogenerator charges or special eligible charges and rules to\nprovide for such administrative charges or fees as are necessary to\ndefray expenses in administering the special rebates and discounts\nprovided pursuant to this article.\n  (2) No eligible energy user, qualified eligible energy user, on-site\ncogenerator, or clean on-site cogenerator shall receive a rebate\npursuant to this article until it has obtained a certification from the\nappropriate city agency in accordance with a local law enacted pursuant\nto this section. No such certification for a qualified eligible energy\nuser shall be issued on or after November first, two thousand. No such\ncertification of any other eligible energy user, on-site cogenerator, or\nclean on-site cogenerator shall be issued on or after July first, two\nthousand twenty-seven.\n  (3) A utility and a vendor of energy services shall keep records of\nall transactions subject to this article and make such records available\nto the agency of the city designated by local law enacted pursuant to\nthis section.\n  (d) (1) Each utility shall reduce each bill for energy services or\nnatural gas for each eligible energy user, vendor of energy services,\non-site cogenerator or clean on-site cogenerator as follows:\n  (i) a bill for the sale and delivery of natural gas rendered to an\non-site cogenerator or clean on-site cogenerator entitled to a special\nrebate pursuant to the provisions of paragraph five of subdivision (a)\nof this section shall be reduced by the full amount of the special\nrebate that shall have accrued for the period covered by each such bill;\n  (ii) a bill for energy services rendered to any other eligible energy\nuser or on-site cogenerator shall be reduced by the full amount of the\nspecial rebate that shall have accrued for the period covered by each\nsuch bill;\n  (iii) a bill for energy services rendered to a vendor of energy\nservices that has provided a special rebate to an eligible energy user\nor on-site cogenerator in accordance with paragraph three of subdivision\n(a) of this section shall be reduced by such utility by the aggregate\namount of all such special rebates;\n  (iv) provided, however, such utility shall not be required to provide\na special rebate or discount in an amount that exceeds the amount of\nsuch bill for the sale and delivery of natural gas rendered to an\non-site cogenerator or clean on-site cogenerator entitled to a special\nrebate pursuant to the provisions of paragraph five of subdivision (a)\nof this section or, in the case of any other eligible energy user or\non-site cogenerator, the amount of such bill for energy services, and\nprovided, further, that no utility subject to the provisions of\nsubdivision (a) of this section shall be required to carry forward on\nits books and records any special rebates or discounts not made in\naccordance with this sentence to such bills for subsequent periods. Such\ndiscount shall be made within four months from the time certification of\nspecial rebates is made in accordance with subparagraph (iii) or (iv) of\nparagraph one of subdivision (a) of this section. Such amount shall be\nseparately stated and shown on such bills. The credit against the tax\nset forth in subdivision (a) of this section shall be used to reduce the\nmonthly payments of such tax otherwise required by law.\n  (2) A public utility service that provides special rebates for\neligible energy users or qualified eligible energy users shall reduce\neach bill rendered to each such user by the full amount of the special\nrebate that shall have accrued for the period covered by each such bill\nin accordance with paragraph two of subdivision (a) of this section.\nSuch amounts shall be separately stated and shown on such bills.\n  (3) Each such vendor of energy services that has elected to provide\nspecial rebates for eligible energy users, qualified eligible energy\nusers or on-site cogenerators shall reduce each bill rendered to each\nsuch user or cogenerator by the full amount of the special rebate that\nshall have accrued for the period covered by each such bill in\naccordance with paragraph three of subdivision (a) of this section. Such\namounts shall be separately stated and shown on such bills.\n  (e) The credit against the tax set forth in paragraph six of\nsubdivision (a) of this section shall be used to reduce the monthly\npayments of such tax otherwise required by law.\n