Section 22-601. Definitions

When used in this chapter the following terms
  shall have the following meanings:
    (a) "Commercial development pressure areas."
    (1)  The  area  delineated  by  a  line  beginning  at  the  point  of
  intersection  of  the  Manhattan,  Queens and Brooklyn borough lines and
  running easterly along the Queens borough line to  the  center  line  of
  Greenpoint  Avenue;  thence easterly along the center line of Greenpoint
  Avenue to the center line of Review Avenue; thence northerly  along  the
  center line of Review Avenue to the center line of Borden Avenue; thence
  easterly  along  the  center line of Borden Avenue to the center line of
  Van Dam Street; thence northerly along the center line of Van Dam Street
  to the center line of Skillman Avenue; thence easterly along the  center
  line  of  Skillman Avenue to the center line of Honeywell Street; thence
  northerly along the center line of Honeywell Street to the  center  line
  of  Northern  Boulevard;  thence  southwesterly along the center line of
  Northern Boulevard to the center line of Fortieth Road; thence  westerly
  along   the  center  line  of  Fortieth  Road  to  the  center  line  of
  Twenty-ninth  Street;  thence  southerly  along  the  center   line   of
  Twenty-ninth  Street  to  the  center line of Forty-first Avenue; thence
  westerly along the center line  of  Forty-first  Avenue  to  the  Queens
  borough  line;  thence  southerly  along  the Queens borough line to the
  point of beginning; and
    (2)  The  area  delineated  by  a  line  beginning  at  the  point  of
  intersection  of the Brooklyn borough line and the center line of Fulton
  Street and running southerly along the center line of Fulton  Street  to
  the  center  line  of  Prospect Street; thence easterly along the center
  line of Prospect Street to the  center  line  of  Adams  Street;  thence
  southerly  along  the  center line of Adams Street to the center line of
  Tillary Street; thence easterly along the center line of Tillary  Street
  to the center line of Duffield Street; thence northerly along the center
  line  of  Duffield  Street to the Brooklyn borough line; thence westerly
  along the Brooklyn borough line to the point of beginning.
    (b) "Eligible areas." All areas of the city except (i) with respect to
  a  person  relocating  therefrom,   those   designated   as   commercial
  development  pressure areas in subdivision (a) of this section, and (ii)
  the area lying south of the center line of 96th Street, in  the  borough
  of Manhattan.
    (c)  "Eligible charges", "eligible public utility service charges" and
  "eligible on-site cogenerator  charges".  (1)(i)  Eligible  charges  are
  charges for energy services purchased from a utility or from a vendor of
  energy  services  at a rate or rates established pursuant to an order or
  rule of the New York state public  service  commission  or  the  federal
  energy regulatory commission, other than charges for the purchase of the
  commodity  of  natural  gas or electricity, and shall include applicable
  rate reductions for economic development or similar  purposes,  and  all
  taxes  payable  thereon  and  shall  exclude  charges in accordance with
  paragraph two of this subdivision.
    (ii) Eligible public utility service charges are  actual  charges  for
  energy  services made by a public utility service, and shall include all
  taxes payable thereon, and shall  exclude  charges  in  accordance  with
  paragraph   two   of  this  subdivision,  provided,  however,  that  the
  commissioner of small business services  may  by  rule  adjust  eligible
  public  utility  charges  for  purposes  of adjusting the special rebate
  based thereon to an amount that  would  be  comparable  to  the  special
  rebate  available to a comparable customer of a utility as determined by
  such commissioner.
    (iii) Except as otherwise provided in paragraph  five  of  subdivision
  (a)  of  section 22-602 of this chapter with respect to eligible on-site

  cogenerators certified before July first, two thousand three, and  clean
  on-site cogenerators certified after June thirtieth, two thousand three,
  eligible  on-site  cogenerator  charges  are charges for energy services
  purchased  from  a  utility related to the delivery of natural gas to an
  on-site cogenerator at rates established pursuant to an order or rule of
  the New York state public  service  commission  or  the  federal  energy
  regulatory  commission, and shall include applicable rate reductions for
  economic development or similar purposes, and all taxes payable  thereon
  and  shall  exclude  charges  in  accordance  with paragraph two of this
  subdivision.
    (2) (i) Eligible charges, eligible  public  utility  service  charges,
  and,  except  as otherwise provided in paragraph five of subdivision (a)
  of section 22-602 of this  chapter  with  respect  to  eligible  on-site
  cogenerators  certified  before July first, two thousand three and clean
  on-site cogenerators certified after June thirtieth, two thousand three,
  eligible on-site cogenerator charges shall  not  include  the  following
  charges:  (A)  any special charges on bills relating to energy services,
  including, but not limited to, collection charges, late payment  charges
  or  excess  distribution  charges,  or  any  additional fee charged by a
  vendor of energy services to an eligible energy user, qualified eligible
  energy user or on-site cogenerator for energy services, as authorized by
  subdivision (d) of this section; (B) charges for  such  energy  services
  that  are  resold;  and (C) charges for energy services used for heating
  the premises.
    (ii) Eligible charges and  eligible  public  utility  service  charges
  shall  not include charges for energy services used in the production of
  electricity.
    (iii) Eligible on-site cogenerator charges shall not  include  charges
  made  by  a utility for energy services relating to the sale or delivery
  of natural gas used by an on-site cogenerator  to  generate  electricity
  used by any user not located on the same site as the on-site cogenerator
  or by any user for purposes of heating any premises.
    (d)  "Eligible  energy  user."  Any  non-residential  user  of  energy
  services, except a government agency,  public  benefit  corporation,  or
  instrumentality  thereof,  hotel,  retail  vendor  or  energy  intensive
  facility, as defined in this section, that:
    (1) takes occupancy  of  non-residential  premises  after  May  third,
  nineteen hundred eighty-five, for which it has, after such date, entered
  into  a  written  agreement to buy or lease, provided that such premises
  are located in an eligible area and that such premises are a replacement
  for premises previously occupied by such energy user  for  a  continuous
  period  of twenty-four months during the thirty-month period immediately
  preceding  such  user's  taking  occupancy,  which  previously  occupied
  premises were: (i) outside an eligible area, or (ii) within a commercial
  development  pressure  area, provided that such replacement premises are
  not located in a commercial development pressure area; or
    (2) occupies, operates  or  manages  specially  eligible  premises  as
  defined in this section.
    Eligible  energy  users  shall  not  include  an  occupant of premises
  contained within a commercial development pressure area that  have  been
  used  principally  for  manufacturing  activities at any time during the
  twelve-month period prior to such  occupant's  taking  occupancy  unless
  such   occupant   uses   such  premises  principally  for  manufacturing
  activities or such user takes occupancy  of  such  premises  after  June
  thirtieth,  two thousand. In addition, an occupant of premises described
  in paragraph one or two of this subdivision shall  not  be  an  eligible
  energy  user  unless:  (i)  the  energy services used and electricity or
  natural gas consumed by such occupant at such premises are  individually

  and accurately metered and billed so as to enable a determination of the
  occupant's  usage  of  energy  services, natural gas or electricity; and
  (ii) for  any  occupant  purchasing  energy  services,  natural  gas  or
  electricity  from  a vendor of energy services, (A) the price charged by
  such vendor for such energy services, electricity and natural gas  shall
  be  no  higher than the price that would have been charged such occupant
  directly by a utility pursuant to the applicable tariffs of the New York
  state  public  service  commission  or  the  federal  energy  regulatory
  commission,  provided  that  an  additional  fee,  not  exceeding twelve
  percent of such price, may be charged by such vendor, and (B) the price,
  charges, fees (if any) and other terms and conditions for  the  sale  of
  such  energy  services,  electricity or natural gas to such occupant are
  clearly and  separately  set  forth  in  a  written  contract  or  lease
  agreement  between  such occupant and such vendor, and such vendor shall
  separately state in each bill for such services, electricity and natural
  gas the price, charges and fees (if any) that are included in such  bill
  and  the  amount  of the special rebate made to such occupant or that no
  special rebate has been made.
    (e) "Hotel." A building or portion of it which is regularly  used  and
  kept  open  as such for the lodging of guests. The term "hotel" includes
  an apartment hotel, a motel, boarding house  or  club,  whether  or  not
  meals are served.
    (f)  "Manufacturing  activity."  An activity involving the assembly of
  goods to create a different article, the processing  or  fabrication  or
  packaging of goods.
    (g)  "Discount."  The  amount  of  a  reduction  in  a bill for energy
  services rendered to a vendor of energy services  or  a  public  utility
  service  by  a  utility  in  accordance with the requirements of section
  22-602 of this chapter equal to the special rebates made by such  vendor
  or public utility service to eligible energy users.
    (h)  "Retail  Vendor."  Any person, including any corporation or other
  business entity which is predominantly engaged in the sale,  other  than
  through  the  mail, of tangible personal property to any person, for any
  purpose unrelated to the trade or business of such person, or  which  is
  predominantly  engaged in selling services to individuals which services
  generally involve the physical, mental and/or  spiritual  care  of  such
  individuals,  or  the  physical  care  of  the personal property of such
  person unrelated to the trade  or  business  of  such  person,  provided
  however,  where  such  sale of tangible personal property or services is
  performed only by one or more operating units, divisions or subdivisions
  of any person, only such  operating  units,  divisions  or  subdivisions
  shall come within the definition contained herein.
    (i) "Specially eligible premises."
    (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
  property  is  exempt from real property taxation and the requirements of
  paragraph 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,  that  construction  or  renovation  of such premises 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
    (2)  non-residential  premises  that  are  wholly  contained  in  real
  property that has obtained approval after May  third,  nineteen  hundred
  eighty-five  and  prior to November first, two thousand for financing by
  the city industrial development agency established pursuant  to  section
  nine  hundred seventeen 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
  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 real property is located in an eligible area; or
    (3)  non-residential  premises  that  are  wholly  contained  in  real
  property that has obtained  approval  after  October  thirty-first,  two
  thousand  and  prior to July first, two thousand ten 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
  conveyance  of title to such property to such agency, and that such real
  property is located in an eligible area; or
    (4)  non-residential  premises  that  are  wholly  contained  in  real
  property  owned  by  the  city  of  New York or the New York state urban
  development corporation, or a subsidiary thereof, a lease for which  was
  approved in accordance with the applicable provisions of the charter and
  such approval was obtained after May third, nineteen hundred eighty-five
  and  prior  to November first, two thousand, provided, however that such
  premises 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
  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 real property is located in an eligible area; or
    (5)  non-residential  premises  that  are  wholly  contained  in  real
  property owned by such city or the  New  York  state  urban  development
  corporation,  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, provided,  however,  that  such  premises  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
    (6) non-residential premises contained in real property not located in
  an eligible area that otherwise meet the criteria of paragraph one, two,
  three, four or five of this subdivision, where such  premises  shall  be
  used  primarily  for  manufacturing  activities  and  provided that such

  premises shall be improved as a result of expenditures in an  amount  in
  excess  of  ten  per  centum of the assessed value of such real property
  attributable to such premises at which such real property  was  assessed
  for  tax purposes for the tax year in which such improvements commenced,
  except that the  required  expenditures  for  improvements  to  property
  eligible to obtain benefits under part five of subchapter two of chapter
  two  of  title eleven of this code shall be the amount that an applicant
  must expend on construction work for a project in order to  qualify  for
  benefits  as  provided  in such part five. Attribution of value shall be
  made in accordance with the rules and regulations  of  the  mayor.  Only
  expenditures  for  improvements that have been identified as part of the
  construction or  reconstruction  project  meeting  the  requirements  of
  paragraph  one,  two, three, four or five of this subdivision, whichever
  is applicable, shall qualify for  purposes  of  satisfying  the  minimum
  expenditure   requirements  of  this  subdivision.  Notwithstanding  the
  foregoing, for purposes of applying the criteria  of  this  subdivision,
  the  reference  to  May third, nineteen hundred eighty-five contained in
  paragraphs one, two and four of  this  subdivision  shall  be  deemed  a
  reference to May first, nineteen hundred eighty-six.
    (7)  provided,  however,  that no such premises described in paragraph
  one, two, three, four, five or six of this subdivision, contained  in  a
  newly   constructed  structure  or  building,  shall  come  within  this
  definition unless such premises meet the requirements of  the  New  York
  state  energy  conservation  construction  code  promulgated pursuant to
  article eleven of the energy law.
    (j) "Special rebate." The amount of a reduction in a bill rendered  by
  a  utility,  a public utility service or a vendor of energy services for
  energy services to an eligible  energy  user  or  a  qualified  eligible
  energy user, or an agent of either, or an on-site cogenerator or a clean
  on-site  cogenerator;  and  calculated in accordance with the applicable
  provisions of section 22-602 of  this  chapter  and  the  rules  of  the
  department of small business services.
    (k)  "Vendor  of  energy  services."  Any person, corporation or other
  entity not subject to the jurisdiction and general  supervision  of  the
  New  York state public service commission that furnishes or sells energy
  services to an eligible energy user, a qualified eligible energy user or
  an on-site cogenerator as an incident to leasing, subleasing,  licensing
  or  otherwise  permitting  such  user to rent or occupy premises of such
  vendor.
    (l) "Empowerment zone". Empowerment zone shall mean an area within the
  city of New York  that  has  been  designated  as  an  empowerment  zone
  pursuant to the Omnibus Budget Reconciliation Act of 1993.
    (m) "Public utility service". A service established by the city of New
  York  pursuant  to  article  fourteen-A  of  the  general municipal law,
  including the New York city public utility service.
    (n) "Empire zone." An area within the city that has been designated as
  an empire zone pursuant to article eighteen-B of the  general  municipal
  law.
    (o)  "Utility". A person that provides energy services within the city
  of New York and is subject to the jurisdiction and  general  supervision
  of  the New York state public service commission and to a tax imposed by
  such city under chapter eleven of title eleven of the code, except  that
  the  Long  Island Power Authority, or its subsidiary, is a utility under
  this subdivision to the extent that it provides energy  services  within
  the city of New York and makes a payment to such city that is equivalent
  to  the  tax  imposed  on  utilities pursuant to chapter eleven of title
  eleven of the code.

    (p) "Energy  conservation  measures".  The  construction,  alteration,
  repair  or  improvement  to a building or separate leased space within a
  building or to equipment affixed to, contained in, or on the grounds  of
  a building, which reduces energy consumption.
    (q)  "Simple  payback period". The number of years necessary to recoup
  the cost of an energy conservation measure through  annual  energy  cost
  savings.
    (r)  "Qualified  eligible energy user".  (1) A user of energy services
  that would have qualified as an eligible energy user under paragraph one
  of subdivision (d) of this  section  if  the  reference  to  May  third,
  nineteen  hundred  eighty-five  were  deemed  a  reference  to  December
  thirty-first, nineteen hundred ninety, and that (i) agrees to expand the
  number of its full-time employees, within two years  from  the  date  of
  certification,  by  fifty  employees or ten percent of the number of its
  full-time employees as of January first,  nineteen  hundred  ninety-one,
  whichever   is   greater;   provided,  however,  that  one  economically
  disadvantaged or unemployed person hired as a full-time  employee  after
  the  date  of  certification shall be counted as two full-time employees
  and two part-time employees shall be counted as one full-time  employee;
  and  provided,  further,  that  the  mayor  may define by rule full-time
  employees,  part-time  employees,   unemployed   persons,   economically
  disadvantaged   persons,  and  criteria  for  continued  eligibility  in
  relation  to  fluctuations  in  employment  levels;  or  (ii)  develops,
  implements,  and  maintains,  in  consultation  with  the  New York city
  department of social services, the department of small business services
  or the New York city department of youth and  community  development,  a
  job  training  program which shall be certified and monitored by any one
  of such departments and which shall meet the standards for such programs
  as are established by the rules of the mayor; or
    (2) Any non-residential user of energy services, except  a  government
  agency, public benefit corporation, or instrumentality thereof, hotel or
  retail  vendor  as  defined  in this section, that occupies, operates or
  manages targeted eligible premises.
    An occupant of targeted eligible premises described in  paragraph  one
  or two of this subdivision shall not be a qualified eligible energy user
  unless  the  energy  services used by such occupant at such premises are
  individually and accurately  metered  and  billed  so  as  to  enable  a
  determination  of  the  occupant's  usage  of such energy services to be
  made.
    (s) "Targeted eligible premises". (1)  non-residential  premises  that
  are  wholly  contained  in  property that is eligible to obtain benefits
  under part four of subchapter two of chapter two  of  title  eleven,  or
  would  be  eligible  to  receive benefits under such chapter except that
  such property is exempt from real property taxation and the requirements
  of paragraph two of subdivision g of section 11-259 of the code have not
  been satisfied, provided that application for  such  benefits  was  made
  after  December  thirty-first,  nineteen  hundred  ninety  and  prior to
  November first, two thousand, that construction or  renovation  of  such
  premises was described in such application, that such premises have been
  substantially  improved by such construction or renovation so described,
  that twice the minimum required expenditure as defined in  such  chapter
  has  been  made,  and  that such real property is located in an eligible
  area; or
    (2)  non-residential  premises  that  are  wholly  contained  in  real
  property  which  has  obtained  approval  after  December  thirty-first,
  nineteen hundred ninety and prior to November first,  two  thousand  for
  financing  by  an  industrial development agency established pursuant to
  section nine hundred seventeen 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 forty 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 real property is located in an eligible area;
  or
    (3)  non-residential  premises  that  are  wholly  contained  in  real
  property  owned  by  the  city  or  the New York state urban development
  corporation, or a subsidiary thereof, a lease for which was approved  in
  accordance  with  the  applicable  provisions  of  the charter, and such
  approval was obtained  after  December  thirty-first,  nineteen  hundred
  ninety  and  prior  to  November first, two thousand, provided that such
  premises 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  forty
  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 real property is located in an eligible area; or
    (4) non-residential premises contained in real property not located in
  an  eligible area that otherwise meet the criteria of paragraph one, two
  or three  of  this  subdivision,  where  such  premises  shall  be  used
  primarily  for  manufacturing activities and provided that such premises
  shall be improved as a result of expenditures in an amount in excess  of
  twenty   per  centum  of  the  assessed  value  of  such  real  property
  attributable to such premises at which such real property  was  assessed
  for  tax purposes for the tax year in which such improvements commenced.
  Attribution of value shall be made in accordance with the rules  of  the
  mayor.  Only  expenditures for improvements that have been identified as
  part of the construction or renovation project meeting the  requirements
  of  paragraph  one,  two  or  three  of  this  subdivision, whichever is
  applicable,  shall  qualify  for  purposes  of  satisfying  the  minimum
  expenditure requirements of this subdivision.
    Provided,  however,  that no such premises described in paragraph one,
  two, three or four of this subdivision, contained in a newly constructed
  structure or building, shall come within  this  definition  unless  such
  premises meet the requirements of the New York state energy conservation
  construction  code  promulgated pursuant to article eleven of the energy
  law. And provided, further, that (i) the qualified eligible energy  user
  shall  submit  on  an  annual  basis  proof that the heating and cooling
  systems within the premises continue to meet the  performance  standards
  specified  in  section  7813.21  of the energy conservation construction
  code,  or  such  predecessor  section  to  which  the   premises,   when
  constructed  or  substantially  renovated,  were subject and (ii) to the
  extent that the cost  of  motors  or  lighting  equipment  described  in
  sections  7813.52  and  7813.53  of the energy conservation construction
  code is included  as  part  of  the  minimum  expenditures  required  in
  paragraph  one,  two,  three  or four of this subdivision, the qualified
  eligible energy user shall certify that all  such  compatible  equipment
  with a simple payback period of five years or less has been installed.
    (t)   "Energy   services".   The   transmission  and  distribution  of
  electricity or gas, and such other services  that  are  associated  with
  such  transmission  and  distribution  as  shall be designated as energy
  services by rule of the commissioner of small business services as  such
  commissioner  deems  necessary to promote economic development, provided
  that  energy  services  shall  not  include  the  commodity  of  gas  or
  electricity.

    (u)  "On-site  cogenerator". A person, other than a utility, that owns
  an electric generating  facility  that  simultaneously  or  sequentially
  produces   electricity   and   useful   thermal  energy,  provided  that
  substantially all of such electricity  shall  be  used  by  an  eligible
  energy  user that occupies the same site as such generating facility. An
  on-site cogenerator may be  the  same  or  a  separate  person  as  such
  eligible energy user.
    (v)   "Clean   on-site   cogenerator".  An  on-site  cogenerator,  the
  electricity generating facility  of  which  has  an  emission  rate  for
  nitrous  oxides  of  no more than three tenths of one pound per megawatt
  hour. The commissioner of the  department  of  small  business  services
  shall  establish  by  rule  a  megawatt  hour  equivalent for any useful
  thermal energy produced by the cogenerator for purposes  of  determining
  benefits under this chapter.