Section 25-S. Definitions

As used in this article the following terms shall
  have the following meanings:
    (a)  "Eligible  energy  user".  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:
    (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: (A) outside an eligible area, or (B) 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  and
  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  and  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 and 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.
    (b)  "Specially  eligible premises". (1) non-residential premises that
  are wholly contained in property that is  eligible  to  obtain  benefits
  under title two-D or two-F of article four of the real property tax law,
  or  would be eligible to receive benefits under such article except that
  such property is exempt from real property taxation and the requirements
  of  paragraph  (b)  of  subdivision  seven  of  section   four   hundred
  eighty-nine-dddd   of   such   title   two-D,  or  the  requirements  of
  subparagraph (ii) of paragraph (b) of subdivision five of  section  four
  hundred eighty-nine-cccccc of such title two-F, 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 title two-D  or
  two-F,  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
  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 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 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,
  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) nonresidential 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 title two-F of  article  four  of  the
  real  property tax law 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 title. Attribution of value shall be made in accordance
  with  the  rules  and  regulations  of the city agency designated in the
  local law enacted pursuant to section  twenty-five-t  of  this  article.
  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.
    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 or, if applicable, a municipal code authorized pursuant
  to such article.
    (c) "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.
    (d) "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
  twenty-five-t of this article, equal to the special rebates made by such
  vendor or public utility service to eligible energy users.
    (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) "Commercial development pressure  areas".  Such  portions  of  the
  following  areas  as  may be designated by local law enacted pursuant to
  section  twenty-five-t  of  this  article  experiencing  or  likely   to
  experience  shortages of space suitable for manufacturing activities but
  needing the benefits available under this article as  an  inducement  to
  economic development:

    In  the  city of New York, (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.
    (g)  "Eligible areas". Areas of a city designated by local law enacted
  pursuant to  section  twenty-five-t  of  this  article  as  needing  the
  benefits  available  under  this  article  as  an inducement to economic
  development, provided that the area lying south of the  center  line  of
  96th  Street, in the borough of Manhattan in the city of New York, shall
  not be so designated.
    (h) "Manufacturing activity". An activity involving  the  assembly  of
  goods  to  create  a different article or the processing, fabrication or
  packaging of goods.
    (i) "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 twenty-five-t of this article and the rules of the
  city agency designated  by  the  local  law  enacted  pursuant  to  such
  section.
    (j) "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 the agency designated by local law enacted  pursuant  to
  section twenty-five-t of this article may by rule adjust eligible public
  utility  service  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  twenty-five-t  of this article with respect to 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  twenty-five-t  of  this  article  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 (a) 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.
    (iv) Charges related to  energy  used  for  space  heating,  when  not
  precisely  ascertainable,  shall be determined, for the purposes of this
  paragraph, in accordance with methods or formulas reasonably designed to
  approximate them that are devised  by  those  designated  by  local  law
  enacted pursuant to section twenty-five-t of this article.
    (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  a
  city having a population of one million or more 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 a city having a
  population  of  one  million  or  more  by local law pursuant to article
  fourteen-A of the general municipal law, including  the  New  York  city
  public utility service.
    (n) "Empire zone". Empire zone shall mean an area within a city having
  a  population  of  one  million  or  more 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  a  city
  having  a  population  of  one  million  or  more  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 pursuant to
  subdivision (a) of section twelve hundred one of  the  tax  law,  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  a  city  having  a population of one million or more and makes a
  payment to such city that is equivalent to the tax imposed on  utilities
  pursuant  to  such  subdivision (a) of section twelve hundred one of the
  tax law.
    (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 (a) 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 agency designated by local law enacted
  pursuant to section twenty-five-t of this article  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  employment,  a job training program which shall be
  certified and monitored by such department  and  which  shall  meet  the
  standards  for  such  programs  as  are  established by the rules of the
  agency designated by local law enacted pursuant to section twenty-five-t
  of this article; 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 title two-D of article four of the real property tax law, or would
  be  eligible  to  receive  benefits  under such article except that such
  property  is  exempt from real property taxation and the requirements of
  paragraph  (b)  of   subdivision   seven   of   section   four   hundred
  eighty-nine-dddd  of  such  law  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 title 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  December  thirty-first,
  nineteen hundred ninety and prior to November first,  two  thousand  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 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 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  of
  such  city,  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
  city agency designated in the local  law  enacted  pursuant  to  section
  twenty-five-t  of  this article. 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 or, if applicable, a municipal  code  authorized  pursuant  to  such
  article.  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 the agency designated by local
  law enacted pursuant to section twenty-five-t of this  article  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 agency designated  by  local  law  enacted
  pursuant  to  section  twenty-five-t  of this article shall establish by
  rule a megawatt hour equivalent for any useful thermal  energy  produced
  by  the  cogenerator  for  purposes  of  determining benefits under this
  article.