Section 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.N.Y. Gen. City Law § 25-T
Amended by New York Laws 2023, ch. 55,Sec. AA-6, eff. 5/3/2023.Amended by New York Laws 2020, ch. 58,Sec. XXX-H-A-6, eff. 4/3/2020.Amended by New York Laws 2017, ch. 61,Sec. E-10, eff. 6/29/2017.Amended by New York Laws 2015, ch. 20,Sec. A-42, eff. 6/23/2015.Amended by New York Laws 2014, ch. 59,Sec. GG-E-4, eff. 6/30/2013.