§ 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 twenty-seven, 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 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 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 twenty-seven, 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.