2023 New York Laws › GCT - General City › Article 2-F - Rebates of Charges for Energy › 25-S - Definitions.

§ 25-s. Definitions. As used in this article the following terms shall
have the following meanings:
(a)  "Eligible  energy  user".  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:
(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: (A) outside an eligible area, or (B) 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  and
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  and  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 and 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.
(b)  "Specially eligible premises".  (1) non-residential premises that
are wholly contained in property that is  eligible  to  obtain  benefits
under title two-D or two-F of article four of the real property tax law,
or  would be eligible to receive benefits under such article except that
such property is exempt from real property taxation and the requirements
of  paragraph  (b)  of  subdivision  seven  of  section   four   hundred
eighty-nine-dddd   of   such   title   two-D,  or  the  requirements  of
subparagraph (ii) of paragraph (b) of subdivision five of  section  four
hundred eighty-nine-cccccc of such title two-F, 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 twenty-seven, 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
title  two-D  or two-F, 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
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 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  twenty-seven  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  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,
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 twenty-seven, 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)  nonresidential 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 title two-F of  article  four  of  the
real  property tax law 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 title. Attribution of value shall be made in accordance
with  the  rules  and  regulations  of the city agency designated in the
local law enacted pursuant to section  twenty-five-t  of  this  article.
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.
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 or, if applicable, a municipal code authorized pursuant
to such article.
(c) "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.
(d) "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
twenty-five-t of this article, equal to the special rebates made by such
vendor or public utility service to eligible energy users.
(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) "Commercial development pressure  areas".  Such  portions  of  the
following  areas  as  may be designated by local law enacted pursuant to
section  twenty-five-t  of  this  article  experiencing  or  likely   to
experience  shortages of space suitable for manufacturing activities but
needing the benefits available under this article as  an  inducement  to
economic development:
In  the  city of New York, (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.
(g)  "Eligible areas". Areas of a city designated by local law enacted
pursuant to  section  twenty-five-t  of  this  article  as  needing  the
benefits  available  under  this  article  as  an inducement to economic
development, provided that the area lying south of the  center  line  of
96th  Street, in the borough of Manhattan in the city of New York, shall
not be so designated.
(h) "Manufacturing activity". An activity involving  the  assembly  of
goods  to  create  a different article or the processing, fabrication or
packaging of goods.
(i) "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 twenty-five-t of this article and the rules of the
city agency designated  by  the  local  law  enacted  pursuant  to  such
section.
(j) "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 the agency designated by local law enacted  pursuant  to
section twenty-five-t of this article may by rule adjust eligible public
utility  service  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  twenty-five-t  of this article with respect to 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  twenty-five-t  of  this  article  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 (a) 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.
(iv) Charges related to  energy  used  for  space  heating,  when  not
precisely  ascertainable,  shall be determined, for the purposes of this
paragraph, in accordance with methods or formulas reasonably designed to
approximate them that are devised  by  those  designated  by  local  law
enacted pursuant to section twenty-five-t of this article.
(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  a
city having a population of one million or more 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 a city having a
population  of  one  million  or  more  by local law pursuant to article
fourteen-A of the general municipal law, including  the  New  York  city
public utility service.
(n) "Empire zone". Empire zone shall mean an area within a city having
a  population  of  one  million  or  more 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  a  city
having  a  population  of  one  million  or  more  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 pursuant to
subdivision (a) of section twelve hundred one of  the  tax  law,  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  a  city  having  a population of one million or more and makes a
payment to such city that is equivalent to the tax imposed on  utilities
pursuant  to  such  subdivision (a) of section twelve hundred one of the
tax law.
(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 (a) 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 agency designated by local law enacted
pursuant to section twenty-five-t of this article  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  employment,  a job training program which shall be
certified and monitored by such department  and  which  shall  meet  the
standards  for  such  programs  as  are  established by the rules of the
agency designated by local law enacted pursuant to section twenty-five-t
of this article; 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 title two-D of article four of the real property tax law, or would
be  eligible  to  receive  benefits  under such article except that such
property  is  exempt from real property taxation and the requirements of
paragraph  (b)  of   subdivision   seven   of   section   four   hundred
eighty-nine-dddd  of  such  law  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 title 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  December  thirty-first,
nineteen hundred ninety and prior to November first,  two  thousand  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 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 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  of
such  city,  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
city agency designated in the local  law  enacted  pursuant  to  section
twenty-five-t  of  this article. 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 or, if applicable, a municipal  code  authorized  pursuant  to  such
article.  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 the agency designated by local
law enacted pursuant to section twenty-five-t of this  article  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 agency designated  by  local  law  enacted
pursuant  to  section  twenty-five-t  of this article shall establish by
rule a megawatt hour equivalent for any useful thermal  energy  produced
by  the  cogenerator  for  purposes  of  determining benefits under this
article.