Relates to the eligibility of beneficiaries of the industrial and commercial abatement program for special rebates and discounts

Title of bill

An act to amend the general city law and the administrative code of the city of New York, in relation to eligibility of beneficiaries of the industrial and commercial abatement program for 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 modify the City's Energy Cost Savings Program ("ECSP") and Lower Manhattan Energy Program ("LMEP") to establish eligibility for the Industrial and Commercial Abatement Program (ICAP) as a basis for eligibility for ECSP and LMEP.

Justification

For the last twenty-two years, ECSP has allowed applicants to qualify for benefits on the basis of eligibility for the Industrial and Commercial Incentive Program (ICIP). Similarly, LMEP has allowed applicants to qualify for benefits on the basis of eligibility for ICIP since its enactment in 1995. ICIP sunset on June 30, 2008 and was replaced by the similar ICAP on July 1, 2008. This bill would amend provisions of ECSP and LMEP to allow qualification for benefits on the basis of eligibility for ICAP. This bill would provide the applicants that have qualified for ECSP and LMEP on the basis of eligibility for ICAP. This bill would provide the applicants that have qualified for ECSP or LMEP on the basis of ICIP eligibility before the ICIP sunset would continue to be eligible for energy benefits.

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 1,000 businesses that employ over 50,000 individuals within the City's five boroughs. The two programs currently save businesses approximately $46 million annually in energy costs.

Fiscal implications

$46 million (est.) Per year to New York City

Effective date

Immediately.