N.Y. General City Law § 25-aa: Definitions

§ 25-aa. Definitions. As used in this article the following terms

shall have the following meanings:

(a) "Eligible building". A building or structure which is located in

an eligible revitalization area and:

(1) 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 title 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, of the real property tax law have

not been satisfied, provided that application for such benefits was made

after the thirtieth day of June, nineteen hundred ninety-five and before

the first day of July, two thousand twenty-seven, that construction or

renovation of such building or structure was described in such

application, that such building or structure has been substantially

improved by such construction or renovation, and (i) that the minimum

required expenditure as defined in such title has been made, or (ii)

where there is no applicable minimum required expenditure, the building

was constructed within such period or periods of time established by

title two-D or two-F, whichever is applicable, of article four of the

real property tax law for construction of a new building or structure;

or

(2) has obtained approval after the thirtieth day of June, nineteen

hundred ninety-five and before the first day of July, two thousand

twenty-seven, 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 building or structure by construction or

renovation, 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 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 building or structure to such agency; or

(3) is owned by the city of New York or the New York state urban

development corporation, or a subsidiary corporation 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, as the case may be, and such approval was obtained after

the thirtieth day of June, nineteen hundred ninety-five and before the

first day of July, two thousand twenty-seven, provided 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 expenditures have been made within thirty-six months after

the effective date of such lease; or

(4) is eligible to obtain benefits under title two-E of article four

of the real property tax law, or would be eligible to receive benefits

under such title except that such property is exempt from real property

taxation and the requirements of paragraph (b) of subdivision ten of

section four hundred eighty-nine-ccccc of the real property tax law have

not been satisfied, provided that application for such benefits was made

after the thirtieth day of June, nineteen hundred ninety-five and before

the first day of July, two thousand three, that renovation of such

building or structure was described in such application, that such

building or structure has been substantially improved by such

renovation, and that the minimum required expenditure as defined in such

title has been made.

(b) "Eligible charges" and "eligible public utility service charges".

(1)(i) Eligible charges are charges made by a private utility to an

eligible redistributor of energy or a qualified eligible redistributor

of energy for energy services purchased from such private utility 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

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 those charges excluded in

accordance with paragraph two of this subdivision, provided, however,

that the department of business services of a city having a population

of one million or more 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 private utility as determined by

such department.

(2) Eligible charges and eligible public utility service charges shall

not include charges related to: (i) energy services used by persons that

are not eligible revitalization area energy users, and (ii) any special

charges on bills relating to such energy services, including but not

limited to collection charges, late payment charges, or excess

distribution charges. Eligible charges and eligible public utility

service charges shall include charges for energy services used for

common areas, systems and facilities of an eligible building meeting the

criteria of paragraph one, two or three of subdivision (a) of this

section or a targeted eligible building meeting the criteria of

paragraph one, two or three of subdivision (q) of this section to the

extent such common areas, systems or facilities are used by eligible

revitalization area energy users, except that charges attributable to

other users, if minor and incidental, may be included in eligible

charges and eligible public utility service charges for such common

areas, systems and facilities. Eligible charges and eligible public

utility service charges shall not include charges for energy services

used for common areas, systems and facilities of an eligible building

meeting the criteria of paragraph four of subdivision (a) of this

section or a targeted eligible building meeting the criteria of

paragraph four of subdivision (q) of this section unless such common

areas, systems and facilities are separate from the common areas,

systems and facilities that serve that portion of the mixed-use

property, as defined in title two-E of article four of the real property

tax law, used for residential purposes and serve only that portion of

such mixed-use property used for commercial purposes.

(c) "Eligible redistributor of energy". A person that owns or leases

an eligible building, or a portion thereof, and that purchases energy

services on a metered basis from a private utility or public utility

service, and (i) resells or otherwise redistributes such energy services

to one or more eligible revitalization area energy users that occupy

such building or structure or (ii) consumes or uses such energy services

itself and qualifies as an eligible revitalization area energy user as

defined in subdivision (e) of this section, provided, however, that a

person that owns or leases any portion of an eligible building meeting

the criteria of paragraph four of subdivision (a) of this section shall

not be an eligible redistributor of energy unless that portion of such

mixed-use property, as defined in title two-E of article four of the

real property tax law, used for commercial purposes is metered directly

and separately from other portions of such mixed-use property.

(d) "Eligible revitalization area". Any area of a city having a

population of one million or more, provided that in the city of New York

the eligible revitalization area shall be the area in the borough of

Manhattan bounded by Murray Street on the north starting at the

intersection of West Street and Murray Street; running easterly along

the center line of Murray Street; connecting through City Hall Park with

the center line of Frankfort Street and running easterly along the

center lines of Frankfort and Dover Streets to the intersection of Dover

Street and South Street; running southerly along the center line of

South Street to Peter Minuit Plaza; connecting through Peter Minuit

Plaza to the center line of State Street and running northwesterly along

the center line of State Street to the intersection of State Street and

Battery Place; running westerly along the center line of Battery Place

to the intersection of Battery Place and West Street; and running

northerly along the center line of West Street to the intersection of

West Street and Murray Street. Any tax lot which is partly located

inside the eligible revitalization area shall be deemed to be entirely

located inside such area.

(e) "Eligible revitalization area energy user". Any person that

purchases or otherwise receives energy services for its own use and that

occupies, operates or manages premises in an eligible building or

targeted eligible building, provided such premises are metered or

submetered as required in the last sentence of this subdivision, but

such term shall not include a person that (i) occupies residential

space; (ii) is engaged primarily in manufacturing activity in such

building; (iii) is a hospital; (iv) is a hotel; or (v) occupies retail

space. An eligible redistributor of energy or a qualified eligible

redistributor of energy is an eligible revitalization area energy user

with respect to (i) vacant premises within an eligible building or

targeted eligible building, which premises have been constructed or

renovated by such redistributor for occupancy by an eligible

revitalization area energy user other than such redistributor, provided

such vacant premises are metered or submetered in accordance with rules

of such department of business services; and (ii) common areas, systems

and facilities to the extent such common areas, systems and facilities

are used by eligible revitalization area energy users. Notwithstanding

the foregoing provisions of this subdivision, a person shall not be an

eligible revitalization area energy user if the premises occupied,

operated or managed by such person (i) exceed the lesser of ten thousand

contiguous square feet in area or the entire floor of a building and are

not individually and accurately metered or submetered to determine the

occupant's usage of energy services, or (ii) are located in that portion

of mixed-use property, as defined in title two-E of article four of the

real property tax law, used for commercial purposes, and such portion is

not metered directly and separately from other portions of such

mixed-use property.

(f) "Energy services bill". A bill rendered for energy services, which

shall include a bill for rent or similar charges for the occupancy of

premises where such rent or similar charges include the use of energy

services.

(g) "Hotel". A building, or a portion thereof, which is regularly used

and kept open as such for the lodging of guests. The term "hotel"

includes, but is not limited to, an apartment hotel, a motel, boarding

house or club, whether or not meals are served.

(h) "Hospital". A hospital as defined in section twenty-eight hundred

one of the public health law.

(i) "Manufacturing activity". An activity involving the assembly of

goods to create a different article or the processing, fabrication or

packaging of goods.

(j) "Person". Any individual, partnership, association, corporation,

limited liability company, agency of the state or federal government,

public benefit corporation or instrumentality of such agency or

corporation, estate or trust, and any combination of the foregoing.

(k) "Private utility". A utility that provides energy services within

any city having a population of one million or more, that is subject to

the general jurisdiction and supervision of the New York state public

service commission, and that is subject to a gross receipts tax imposed

pursuant to the authority contained in subdivision (a) of section twelve

hundred one of the tax law.

(l) "Public utility service". A service established pursuant to

article fourteen-A of the general municipal law by a city having a

population of one million or more.

(m) "Qualified eligible redistributor of energy". A person that owns

or leases a targeted eligible building, or a portion thereof, and that

purchases energy services on a metered basis from a public utility

service, and (i) resells or otherwise redistributes such energy services

to one or more eligible revitalization area energy users that occupy

such building or structure or (ii) consumes or uses such energy services

itself and qualifies as an eligible revitalization area energy user as

defined in subdivision (e) of this section, provided, however, that a

person that owns or leases any portion of a targeted eligible building

meeting the criteria of paragraph four of subdivision (q) of this

section shall not be a qualified eligible redistributor of energy unless

that portion of such mixed-use property, as defined in title two-E of

article four of the real property tax law, used for commercial purposes

is metered directly and separately from other portions of such mixed-use

property.

(n) "Retail space". Retail space other than space occupied by a

banker, insurance broker, real estate broker, stockbroker, lawyer,

doctor, accountant, or any licensed professional designated by rule of

such department of business services.

(o) "Special rebate". The amount of a reduction in an energy services

bill rendered by a private utility or public utility service to an

eligible redistributor of energy or a qualified eligible redistributor

of energy, or an agent of either, and calculated as a percentage of

eligible charges or eligible public utility service charges as specified

in section twenty-five-bb of this article.

(p) "Simple payback period". The number of years necessary to recoup

the cost of an energy conservation measure through annual energy cost

savings.

(q) "Targeted eligible building". A building or structure which is

located in an eligible revitalization area and:

(1) 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 title 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 the real property tax law have

not been satisfied, provided that application for such benefits was made

after the thirtieth day of June, nineteen hundred ninety-five and before

the first day of July, two thousand three, that construction or

renovation of such building or structure was described in such

application, that such building or structure has been substantially

improved by such construction or renovation, and (i) that twice the

minimum required expenditure as defined in such title has been made, or

(ii) where there is no applicable minimum required expenditure,

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 the building has been constructed within such period or

periods of time established by title two-D of article four of the real

property tax law for construction of a new building or structure; or

(2) has obtained approval after the thirtieth day of June, nineteen

hundred ninety-five and before the first day of July, two thousand

three, 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 building or structure by construction or renovation, 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 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 building or

structure to such agency; or

(3) is owned by the city of New York or the New York state urban

development corporation, or a subsidiary corporation 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, as the case may be, and such approval was obtained after

the thirtieth day of June, nineteen hundred ninety-five and before the

first day of July, two thousand three, provided 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 expenditures have been made within thirty-six months after the

effective date of such lease; or

(4) is eligible to obtain benefits under title two-E of article four

of the real property tax law, or would be eligible to receive benefits

under such title except that such property is exempt from real property

taxation and the requirements of paragraph (b) of subdivision ten of

section four hundred eighty-nine-ccccc of the real property tax law have

not been satisfied, provided that application for such benefits was made

after the thirtieth day of June, nineteen hundred ninety-five and before

the first day of July, two thousand three, that renovation of such

building or structure was described in such application, that such

building or structure has been substantially improved by such

renovation, and that twice the minimum required expenditure as defined

in such title has been made.

(r) "Energy services". The transmission and distribution of

electricity, and such other services that are associated with such

transmission and distribution, as shall be designated as energy services

by rule of the department of business services of a city having a

population of one million or more as such department deems necessary to

promote economic development, provided that energy services shall not

include the commodity of electricity.