New York General City Law Section 25-BB - Special rebates.

25-bb. Special rebates. (a) Amount of special rebates. Special rebates shall be made to eligible redistributors of energy or qualified eligible redistributors of energy, and discounts shall be made to a public utility service, pursuant to paragraph one or two of this subdivision, whichever is applicable:

(1) A private utility shall make a special rebate to an eligible redistributor of energy equal to the following percentages of eligible charges: Months During Applicable % of Eligible Benefit Period Charges or Eligible Public Defined in Utility Service Charges Subdivision (e) first through ninety- 45% sixth ninety-seventh through one hundred 36% eighth one hundred ninth through one hundred twentieth 27% one hundred twenty- first through one hundred thirty-second 18% one hundred thirty- third through one hundred forty-fourth 9% ; provided, however, that a private utility shall make a special rebate to an eligible redistributor of energy that owns or leases an eligible building that, in accordance with procedures set forth in local law, was designated as a landmark before the issuance of a certificate of eligibility pursuant to subdivision (f) of this section, equal to the following percentages of eligible charges: Months During Applicable % of Eligible Benefit Period Charges or Eligible Public Defined in Utility Service Charges Subdivision (e) first through one hundred eighth 45% one hundred ninth through one hundred twentieth 36% one hundred twenty- first through one hundred thirty-second 27% one hundred thirty- third through one hundred forty-fourth 18% one hundred forty- fifth through one hundred fifty-sixth 9% ; or provided, however, that the department of business services of a city having a population of one million or more may increase such percentages at its discretion in order to maintain the special rebate at levels comparable to those historically provided under the program, pursuant to rules that are generally applicable to distinct classes of energy users.

(2) Where, pursuant to a written agreement between such public utility service and the power authority of the state of New York, such public utility service sells energy services to a qualified eligible redistributor of energy that has been individually approved by such power authority and certified pursuant to subdivision (f) of this section before November first, two thousand, or to an eligible redistributor of energy that has been individually approved by such power authority and certified pursuant to subdivision (f) of this section after October thirty-first, two thousand, and such energy services have been provided by a private utility, such private utility shall make a discount to such public utility service and such public utility service shall make a special rebate to such qualified eligible redistributor of energy or such eligible redistributor of energy, which discount and special rebate shall be the product of the eligible public utility service charges to such qualified eligible redistributor of energy and the applicable percentage for a special rebate for energy services in the applicable schedule contained in paragraph one of this subdivision.

(b) Implementation by private utility and public utility service. Each private utility or public utility service that is required to make a special rebate to an eligible redistributor of energy or qualified eligible redistributor of energy by subdivision (a) of this section shall reduce each energy services bill for such redistributor by the full amount of the special rebate or rebates that shall have accrued for the period covered by each such bill. Such utility or utility service shall cease to make such reductions in such energy services bills upon receipt of notification from the department of small business services of a city having a population of one million or more that the certification issued pursuant to subdivision (f) of this section has been suspended or terminated, and such utility or utility service shall change the amount of such reduction in accordance with such notification from such department. Notwithstanding the provisions of this subdivision, a private utility or public utility service shall not be required to provide a special rebate in an amount that exceeds the amount of such energy services bill.

(c) Implementation by redistributor. An eligible redistributor of energy or a qualified eligible redistributor of energy shall implement the following:

(1) An eligible redistributor of energy or a qualified eligible redistributor of energy shall reduce the energy services bills rendered by such redistributor to eligible revitalization area energy users occupying, operating or managing premises in eligible buildings or targeted eligible buildings owned or leased by such redistributor by an amount equal, in the aggregate, to one hundred per centum of each special rebate received by such redistributor.

(2) Each eligible redistributor of energy or qualified eligible redistributor of energy shall allocate the reductions required by paragraph one of this subdivision in accordance with each such eligible revitalization area energy user's use of energy services as follows: (i) if the premises of such user are submetered, such use shall be determined by such submeter; (ii) if the premises of such user are not submetered, such use shall be determined by rules of such department of small business services; and (iii) if an eligible redistributor of energy or qualified eligible redistributor of energy charges amounts to eligible revitalization area energy users that vary annually or more frequently with the costs incurred by such redistributor for the operation of common areas, systems or facilities, such redistributor shall reduce such charges by the portion of the special rebates attributable thereto.

(3) Each eligible redistributor of energy or qualified eligible redistributor of energy shall individually and accurately submeter the energy services sold or otherwise redistributed by such redistributor to each such eligible revitalization area energy user or other occupant of eligible buildings or targeted eligible buildings owned or leased by such redistributor so as to enable a determination of each such user's or occupant's usage of energy services, provided such user or occupant occupies, operates or manages premises that equal or exceed the lesser of ten thousand contiguous square feet in area or the entire floor of a building.

(4) Each eligible redistributor of energy or qualified eligible redistributor of energy shall limit charges to those eligible revitalization area energy users that are submetered in accordance with this section to a price for the purchase of energy services that shall be no higher than the price paid by such redistributor, provided that an additional fee, not exceeding twelve per centum of such price, may be charged by such redistributor for energy services sold to such eligible revitalization area energy users.

(5) Each eligible redistributor of energy or qualified eligible redistributor of energy shall separately state in all energy services bills rendered by such redistributor to an eligible revitalization area energy user for sales of energy services the amount of the reduction in charges for energy services representing the share of the special rebate allocated to such user, or that no reduction has been made. All such bills for energy services shall state substantially the following: "You may be entitled to share a rebate that your landlord has received for charges for energy pursuant to the revitalization area energy rebate program. The amount is separately stated and identified in this bill."

(6) Each eligible redistributor of energy or qualified eligible redistributor of energy shall keep records verifying compliance with the provisions of this article and ensure that such department of small business services and other appropriate city agency or agencies, as determined by rule of such department, have access to such records.

(7) Each eligible redistributor of energy or qualified eligible redistributor of energy shall provide access to eligible buildings and targeted eligible buildings by such department of small business services and other appropriate city agency or agencies, as determined by rule of such department, for the purpose of inspecting meters and other equipment and verifying the accuracy of any application or supplement thereto filed with such agency pursuant to this article.

(d) Additional obligations of qualified eligible redistributors of energy. A qualified eligible redistributor of energy shall (i) submit to such department of small business services on an annual basis proof that the heating and cooling systems within the targeted eligible building continue to meet the performance standards specified in former section 7813.21 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, or such predecessor section to which such building, when constructed or substantially renovated, was subject, and (ii) to the extent that the cost of motors or lighting equipment described in former sections 7813.52 and 7813.53 of the energy conservation construction code is included as part of the expenditures required in subdivision (q) of section twenty-five-aa of this article, the qualified redistributor of energy shall certify to such agency that all such compatible equipment with a simple payback period of five years or less has been installed.

(e) Benefit period. An eligible redistributor of energy or a qualified eligible redistributor of energy shall be eligible for special rebates for a benefit period which begins on the first day of the first billing cycle which commences after the certification is issued pursuant to subdivision (f) of this section; such period, unless sooner ended due to a termination of such certification, shall end one hundred forty-four months after the beginning of such period, provided, however, that if such redistributor owns or leases an eligible building that, in accordance with procedures set forth in local law, was designated as a landmark before the issuance of such certification, then such period shall end one hundred fifty-six months after the beginning of such period.

(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 eligible 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 twenty, provided that no certification for a targeted eligible building shall be issued after October thirty-first, two thousand. Such application shall identify expenditures to be made that will affect eligibility under such subdivision (a) or (q). Upon completion of such expenditures, an applicant shall supplement such application to provide information (i) establishing 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 energy 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 certification or notice thereof to the applicant upon issuance. Such certification 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 article. 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 application or other report be provided by a licensed engineer.

(g) Rules. Such department of business services may promulgate rules to carry out the purposes of this article, including but not limited to rules that:

(i) prescribe methods for determining the amount of special rebates and the allocations of reductions in energy services bills among eligible revitalization area energy users as required by this article, including allocations of charges between eligible charges, eligible public utility service charges and other charges and formulas and methods for such allocations where usage of energy services for a particular purpose or a particular occupant is not metered or submetered or cannot be precisely ascertained for any other reason;

(ii) require that eligible revitalization area energy users and other users that are not eligible revitalization area energy users purchase energy services directly from a private utility or public utility service if the direct purchase from such a utility or service would facilitate the determination of the amount of special rebates and the allocations of reductions in energy services bills among eligible revitalization area energy users;

(iii) require eligible redistributors of energy and qualified eligible redistributors of energy to include statements in new leases, contracts and other agreements with eligible revitalization area energy users and other occupants, and to disclose to such users and other occupants the terms and conditions for the sale of energy services to such users and other occupants and the availability of reductions in energy services bills pursuant to this article, and rules that require such redistributors to make written assurances or undertakings to eligible revitalization area energy users that appropriate reductions in energy services bills will be made pursuant to this article, and rules that prescribe forms for such statements, disclosures, assurances, and undertakings;

(iv) require any eligible redistributor of energy, qualified eligible redistributor of energy, eligible revitalization area energy user, private utility or other person selling energy services within such city to keep records of all transactions subject to this article and to make such records available to appropriate city agencies;

(v) require that statements in connection with the application and any amendments thereof be made under oath;

(vi) prescribe requirements for reports to be made annually and at other times to such department by an eligible redistributor of energy or a qualified eligible redistributor of energy during the duration of the benefit period defined in subdivision (e) of this section; and

(vii) provide for such administrative charges or fees as are necessary to defray expenses in administering the special rebates provided pursuant to this article, including, but not limited to the cost of a survey conducted on behalf of such department to determine exclusions from eligible charges and eligible public utility service charges or allocations between eligible revitalization area energy users and other persons.

(h) Enforcement. Such department of business services may deny an application for a certificate of eligibility or suspend or terminate a certificate of eligibility issued pursuant this article whenever: (i) an eligible redistributor of energy or a qualified eligible redistributor of energy fails to comply with the requirements of this article or the rules promulgated hereunder; or (ii) an application, certificate, amendment, supplement, annual report or other document submitted by an applicant pursuant to this article or such rules contains a false or misleading statement as to a material fact or omits to state any material fact necessary in order to make the statements therein not false or misleading; or (iii) any real property tax or water or sewer charge due and payable with respect to an eligible building or targeted eligible building shall remain unpaid for at least one year following the date upon which such tax or charge became due and payable, unless within thirty days from the mailing of a notice of termination by such department satisfactory proof is presented to such department that any and all delinquent taxes and charges owing with respect to such building as of the date of such notice have been paid in full or are currently being paid in timely installments pursuant to a written agreement with the appropriate agency of such city; or (iv) any payment in lieu of taxes payable with respect to such buildings shall remain unpaid for at least one year following the date upon which such payment became due and payable. Such department shall terminate a certificate of eligibility in the event an eligible redistributor of energy or qualified eligible redistributor of energy fails at any time within the first five years of the benefit period to submeter any premises as required by paragraph three of subdivision (c) of this section. Such city may maintain a civil action or proceeding to recover an amount equal to any benefits improperly obtained.


Last modified: February 3, 2019