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

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 Admin- istrative 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 bene- ficiaries 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 approx- imately $56 million annually in energy costs.

Fiscal implications

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

Effective date

Immediately.