Bill S7327A-2009

Extends the city's energy cost savings program and lower Manhattan energy program

Extends New York city's energy cost savings program and lower Manhattan energy program from 2010 until 2013.

Details

Actions

  • Aug 13, 2010: SIGNED CHAP.406
  • Aug 3, 2010: DELIVERED TO GOVERNOR
  • Jun 15, 2010: returned to senate
  • Jun 15, 2010: passed assembly
  • Jun 15, 2010: ordered to third reading rules cal.159
  • Jun 15, 2010: substituted for a11041
  • May 12, 2010: referred to cities
  • May 12, 2010: DELIVERED TO ASSEMBLY
  • May 12, 2010: PASSED SENATE
  • May 3, 2010: ADVANCED TO THIRD READING
  • Apr 28, 2010: 2ND REPORT CAL.
  • Apr 28, 2010: AMENDED 7327A
  • Apr 27, 2010: 1ST REPORT CAL.427
  • Mar 30, 2010: REFERRED TO CITIES

Votes

Memo

BILL NUMBER:S7327A

TITLE OF BILL:

An act to amend the general city law and the administrative code of the city of New York, in relation to extending the special rebates and discounts provided pursuant to the energy cost savings program and the lower Manhattan energy program

PURPOSE:

This bill would amend provisions of the General City Law and the Administrative Code of the City of New York, to extend the sunset date of the City's Energy Cost Savings Program ("ECSP") and Lower Manhattan Energy Program ("LMEP") to July 2013.

JUSTIFICATION:

ECSP provides benefits, in the form of "special rebates" and "discounts", to firms moving to designated areas of the City or making prescribed levels of investment to expand or upgrade their premises within designated areas of the City. LMEP provides similar benefits to owners of buildings in the Lower Manhattan area and requires that the benefits be passed through to qualified tenants. At the core of both programs is a requirement that the local utility provide eligible beneficiaries with a special rebate against their energy bills. (The utility is given a credit against its utility tax liability equal to the amount of special rebates granted.) Both programs are designed to stem the loss of industrial and commercial jobs to other regions outside the City, which can offer lower energy costs. These programs also promote the renovation and modernization of older commercial and industrial space, thereby providing an incentive for businesses to relocate to, or to renovate, and/or expand within New York City.

Currently, through ECSP and LMEP, New York City provides energy benefits to over 2,100 businesses that employ over 144,000 individuals within the City's five boroughs. The two programs currently save businesses approximately $56 million annually in energy costs.

FISCAL IMPLICATIONS:

$56 million (est.) per year to New York City.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7327--A Cal. No. 427 IN SENATE March 30, 2010 ___________
Introduced by Sen. PADAVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -- reported favora- bly from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report AN ACT to amend the general city law and the administrative code of the city of New York, in relation to extending the special rebates and discounts provided pursuant to the energy cost savings program and the lower Manhattan energy program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision (b) of section 25-s of the general city law, as amended by chapter 202 of the laws of 2009, is amended to to read as follows: (1) non-residential premises that are wholly contained in property that is eligible to obtain benefits under title two-D or two-F of arti- cle 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 subdivi- sion 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 applica- tion for such benefits was made after May third, nineteen hundred eight- y-five and prior to July first, two thousand [ten] THIRTEEN, that construction or renovation of such premises was described in such appli- cation, 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 appli- cable, has been made, and that such real property is located in an eligible area; or S 2. Paragraph 3 of subdivision (b) of section 25-s of the general city law, as amended by chapter 255 of the laws of 2007, is amended to read as follows:
(3) non-residential premises that are wholly contained in real proper- ty that has obtained approval after October thirty-first, two thousand and prior to July first, two thousand [ten] 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 convey- ance of title to such property to such agency, and that such real prop- erty is located in an eligible area; or S 3. Paragraph 5 of subdivision (b) of section 25-s of the general city law, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (5) non-residential premises that are wholly contained in real proper- ty owned by such city or the New York state urban development corpo- ration, 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 [ten] THIRTEEN, provided, however, that such prem- ises 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 S 4. Paragraph 2 of subdivision (c) of section 25-t of the general city law, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (2) No eligible energy user, qualified eligible energy user, on-site cogenerator, or clean on-site cogenerator shall receive a rebate pursu- ant 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 [ten] THIRTEEN. S 5. Paragraph 1 of subdivision (a) of section 25-aa of the general city law, as amended by chapter 202 of the laws of 2009, is amended to read as follows: (1) is eligible to obtain benefits under title two-D or two-F of arti- cle four of the real property tax law, or would be eligible to receive benefits under such title 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, of the real property tax law have not been satisfied, provided that application for such benefits was made after
the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand [ten] THIRTEEN, that construction or renovation of such building or structure was described in such applica- tion, that such building or structure has been substantially improved by such construction or renovation, and (i) that the minimum required expenditure as defined in such title has been made, or (ii) where there is no applicable minimum required expenditure, the building was constructed within such period or periods of time established by title two-D or two-F, whichever is applicable, of article four of the real property tax law for construction of a new building or structure; or S 6. Paragraphs 2 and 3 of subdivision (a) of section 25-aa of the general city law, as amended by chapter 255 of the laws of 2007, are amended to read as follows: (2) has obtained approval after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand [ten] 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 building or structure by construction or renovation, 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 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 building or structure to such agency; or (3) is owned by the city of New York or the New York state urban development corporation, or a subsidiary corporation 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 corpo- ration, as the case may be, and such approval was obtained after the thirtieth day of June, nineteen hundred ninety-five and before the first day of July, two thousand [ten] THIRTEEN, provided that expenditures have been made for improvements to such real property in excess of twen- ty 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 expenditures have been made within thirty-six months after the effective date of such lease; or S 7. Subdivision (f) of section 25-bb of the general city law, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (f) Application and certification. An owner or lessee of a building or structure located in an eligible revitalization area, or an agent of such owner or lessee, may apply to such department of small business services for certification that such building or structure is an eligi- ble building or targeted eligible building meeting the criteria of subdivision (a) or (q) of section twenty-five-aa of this article. Application for such certification must be filed after the thirtieth day of June, nineteen hundred ninety-five and before a building permit is issued for the construction or renovation required by such subdivisions and before the first day of July, two thousand [ten] THIRTEEN, provided that no certification for a targeted eligible building shall be issued after October thirty-first, two thousand. Such application shall identi- fy expenditures to be made that will affect eligibility under such subdivision (a) or (q). Upon completion of such expenditures, an appli- cant shall supplement such application to provide information (i) estab-
lishing that the criteria of such subdivision (a) or (q) have been met; (ii) establishing a basis for determining the amount of special rebates, including a basis for an allocation of the special rebate among eligible revitalization area energy users purchasing or otherwise receiving ener- gy services from an eligible redistributor of energy or a qualified eligible redistributor of energy; and (iii) supporting an allocation of charges for energy services between eligible charges and other charges. Such department shall certify a building or structure as an eligible building or targeted eligible building after receipt and review of such information and upon a determination that such information establishes that the building or structure qualifies as an eligible building or targeted eligible building. Such department shall mail such certif- ication or notice thereof to the applicant upon issuance. Such certif- ication shall remain in effect provided the eligible redistributor of energy or qualified eligible redistributor of energy reports any changes that materially affect the amount of the special rebates to which it is entitled or the amount of reduction required by subdivision (c) of this section in an energy services bill of an eligible revitalization area energy user and otherwise complies with the requirements of this arti- cle. Such department shall notify the private utility or public utility service required to make a special rebate to such redistributor of the amount of such special rebate established at the time of certification and any changes in such amount and any suspension or termination by such department of certification under this subdivision. Such department may require some or all of the information required as part of an applica- tion or other report be provided by a licensed engineer. S 8. Paragraph 1 of subdivision (i) of section 22-601 of the adminis- trative code of the city of New York, as amended by chapter 202 of the laws of 2009, is amended to read as follows: (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 proper- ty is exempt from real property taxation and the requirements of para- graph 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 [ten] THIRTEEN, that construction or renovation of such prem- ises 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 S 9. Paragraph 3 of subdivision (i) of section 22-601 of the adminis- trative code of the city of New York, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (3) non-residential premises that are wholly contained in real proper- ty that has obtained approval after October thirty-first, two thousand and prior to July first, two thousand [ten] 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 convey- ance of title to such property to such agency, and that such real prop- erty is located in an eligible area; or S 10. Paragraph 5 of subdivision (i) of section 22-601, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (5) non-residential premises that are wholly contained in real proper- ty owned by such city or the New York state urban development corpo- ration, 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 [ten] THIRTEEN, provided, however, that such prem- ises 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 S 11. Paragraph 1 of subdivision (c) of section 22-602 of the adminis- trative code of the city of New York, as amended by chapter 255 of the laws of 2007, is amended to read as follows: (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 [ten] 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. S 12. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus