2023 New York Laws › GCT - General City › Article 2-F - Rebates of Charges for Energy › 25-T - Authorization to Require Special Rebates and Discounts.

§ 25-t. Authorization  to  require  special rebates and discounts. (a)
Any city having a population of one million or more is hereby authorized
and empowered to adopt and amend local laws:
(1) Requiring utilities that provide energy services within such  city
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 public utility services 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 of energy
services 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
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)  Requiring  a  public  utility  service  providing energy services
within such city 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 relating to the purchase of 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)  Permitting  vendors  of  energy  services  to  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 relating to 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 before 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 sales of energy
services under  the  provisions  of  this  subdivision,  the  applicable
percentages are as follows:

Months Following                   Applicable % for       Applicable %
Certification                      Natural Gas            for Electricity
first through ninety-sixth         35%                    45%
ninety-seventh through one         28%                    36%
hundred eighth
one hundred ninth through one      21%                    27%
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 agency designated by
local law enacted pursuant to this section may increase such percentages
at the commissioner's discretion in order to maintain the special rebate
at levels comparable to those historically available under the  program,
pursuant  to  rules that are generally applicable to distinct classes of
energy users.
(5) Requiring 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 and  is  certified  after  June  thirtieth,  two
thousand  three,  to  make  a  special  rebate  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, or any additional  fee  charged  by  a  vendor  of
energy  services  as  authorized  by  this  subdivision, 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 before
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  (a) of section twenty-five-s of this article,
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) Any local law enacted pursuant to this  section  shall  contain  a
provision or provisions allowing for a credit against the amount of such
tax  imposed  pursuant  to  authority  contained  in  subdivision (a) of
section twelve hundred one of  the  tax  law  by  such  city  upon  such
utilities  in  the  amounts of the special rebates and discounts made by
such utilities.
(7) Notwithstanding any provisions 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 such city as  a
payment  that  is equivalent to the tax imposed by such city pursuant to
this subdivision of section twelve hundred one of the tax  law.  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 agency designated by local law  enacted
pursuant to this section.
(8)  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  submitted
pursuant to this article after June thirtieth, two thousand three.
(b)  Eligible energy users meeting the criteria contained in paragraph
one of subdivision (a) of this section  and  qualified  eligible  energy
users meeting the criteria contained in paragraph one of subdivision (r)
of  section  twenty-five-s of this article 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  contained  in  paragraph  two  of  subdivision  (a) of section
twenty-five-s of this article 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
contained in such paragraph two shall be determined in  accordance  with
the schedule contained in paragraph four of subdivision (a) hereof 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 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) The city agency designated in the local law  enacted  pursuant
to  this  section  may adopt such rules as the agency deems necessary to
promote economic development and to  effectuate  the  purposes  of  this

article,  including  rules  to determine the extent to which charges are
eligible charges, eligible  public  utility  service  charges,  eligible
on-site  cogenerator  charges  or  special eligible 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 article.
(2)  No  eligible energy user, qualified eligible energy user, on-site
cogenerator,  or  clean  on-site  cogenerator  shall  receive  a  rebate
pursuant  to this article until it has obtained a certification from the
appropriate city agency in accordance with a local law enacted  pursuant
to  this  section. No such certification for a qualified eligible energy
user shall be issued on or after November first, two thousand.  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 twenty-seven.
(3) 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  agency  of the city designated by local law enacted pursuant to
this section.
(d) (1) Each utility 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 in accordance with paragraph three of subdivision
(a)  of  this  section shall be reduced by such utility 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  rebates 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 such bills. The credit against the tax
set forth in subdivision (a) of this section shall be used to reduce the
monthly payments of such tax otherwise required by law.
(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 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  credit  against  the  tax  set  forth  in  paragraph  six  of
subdivision  (a)  of  this  section  shall be used to reduce the monthly
payments of such tax otherwise required by law.