§ 25-t. Authorization to require special rebates and discounts. (a)
Any city having a population of one million or more is hereby authorized
and empowered to adopt and amend local laws:

(1) Requiring utilities that provide energy services within such city
to make special rebates to eligible energy users and on-site
cogenerators certified after June thirtieth, two thousand three, other
than clean on-site cogenerators, and to make discounts to vendors of
energy services and public utility services as follows:

(i) a utility that sells energy services to an eligible energy user
shall be required to make a special rebate to such eligible energy user
equal to the product of the applicable percentage specified for special
rebates in the schedule contained in paragraph four of this subdivision
and the eligible charges for such energy services.

(ii) a utility that delivers natural gas to an on-site cogenerator,
other than a clean on-site cogenerator, that uses such gas to produce
electricity used by an eligible energy user, which cogenerator and user
are certified after June thirtieth, two thousand three, shall be
required to make a special rebate to such on-site cogenerator equal to
the product of the applicable percentage specified for special rebates
in the schedule contained in paragraph four of this subdivision and the
eligible on-site cogenerator charges for the energy services related to
such delivery of such gas.

(iii) a utility that sells energy services to a vendor of energy
services shall be required to make a discount to such vendor of energy
services in an amount equal to the sum of the special rebates certified
to such utility by such vendor as having been made by such vendor to
eligible energy users in accordance with subparagraphs (i) through (iii)
of paragraph three of this subdivision.

(iv) a utility that sells energy services to a public utility service
shall be required to make a discount to such public utility service
equal to the sum of the special rebates and discounts certified to such
utility by such public utility service as having been made by such
public utility service in accordance with subparagraphs (i) through
(iii) of paragraph two of this subdivision.

(2) Requiring a public utility service providing energy services
within such city to make special rebates to eligible energy users and
qualified eligible energy users and discounts to vendors of energy
services as follows:

(i) where, pursuant to a written agreement between a public utility
service and the power authority of the state of New York, such public
utility service sells energy services to an eligible energy user that
has been individually approved by such power authority and certified
pursuant to subdivision (c) of this section prior to November first, two
thousand, such special rebate shall be in the amount or amounts derived
by calculating the full amount of the special rebate to which such
eligible energy user would have been entitled pursuant to the schedule
contained in paragraph four of this subdivision for eligible charges
relating to the purchase of such energy services had such eligible
energy user purchased such energy services directly from the utility and
subtracting from such full amount the difference between the eligible
charges relating to the purchase of such energy services had such
eligible energy user purchased the energy services directly from the
utility and the eligible public utility service charges relating to the
purchase of such energy services actually charged to such eligible
energy user by such public utility service for actual purchases of
energy services from such public utility service; except that (A) in no
event shall the amount of such special rebate exceed the amount of the
special rebate to which such eligible energy user would have been
entitled pursuant to the schedule contained in paragraph four of this
subdivision had such eligible energy user purchased the energy services
directly from the utility at the price charged by such utility, and (B)
for any monthly billing period where the calculation of such special
rebate results in a negative number, the amount of such special rebate
shall be deemed to be zero.

(ii) where, pursuant to a written agreement between a public utility
service and the power authority of the state of New York, such public
utility service (A) sells energy services to an eligible energy user
that has been individually approved by such power authority and
certified pursuant to subdivision (c) of this section after October
thirty-first, two thousand, or (B) sells energy services to a qualified
eligible energy user that has been individually approved by such power
authority and certified pursuant to subdivision (c) of this section
prior to November first, two thousand, such special rebate shall be the
product of the applicable percentage for special rebates specified in
the schedule contained in paragraph four of this subdivision and the
eligible public utility service charges relating to the purchase of such
energy services.

(iii) a public utility service that sells energy services to a vendor
of energy services shall be required to make a discount to such vendor
of energy services equal to the sum of the special rebates certified to
such public utility service by such vendor as having been made by such
vendor to eligible energy users or qualified eligible energy users to
which such vendor of energy services has resold such energy services in
accordance with subparagraphs (i) through (iii) of paragraph three of
this subdivision.

(3) Permitting vendors of energy services to elect to provide a
special rebate against an eligible energy user's, qualified eligible
energy user's or on-site cogenerator's bill for energy services as
follows:

(i) in the case of a vendor of energy services that sells energy
services provided by a utility to an eligible energy user, such special
rebate shall be the product of the applicable percentage specified for a
special rebate in the schedule contained in paragraph four of this
subdivision and the eligible charges relating to such sales of energy
services made by such vendor of energy services.

(ii) in the case of a vendor of energy services that delivers natural
gas to an on-site cogenerator that is other than a clean on-site
cogenerator and that uses such gas to produce electricity used by an
eligible energy user, which cogenerator and user are certified after
June thirtieth, two thousand three, such special rebate shall be equal
to the product of the applicable percentage specified in the schedule
contained in paragraph four of this subdivision and the eligible on-site
cogenerator charges for the energy services related to such delivery of
such gas.

(iii) in the case of a vendor of energy services that sells energy
services provided by a public utility service to a qualified eligible
energy user that was certified before November first, two thousand, or
to an eligible energy user that was certified after October
thirty-first, two thousand, such special rebate shall be the product of
the applicable percentage specified for a special rebate in the schedule
contained in paragraph four of this subdivision and the eligible public
utility service charges for sales of energy services made by such vendor
of energy services.

(4) For purposes of determining special rebates for sales of energy
services under the provisions of this subdivision, the applicable
percentages are as follows:
Months Following Applicable % for Applicable %
Certification Natural Gas for Electricity
first through ninety-sixth 35% 45%
ninety-seventh through one 28% 36%
hundred eighth
one hundred ninth through one 21% 27%
hundred twentieth
one hundred twenty-first 14% 18%
through one hundred thirty-
second
one hundred thirty-third 7% 9%
through one hundred forty-
fourth
; provided, however, that the commissioner of the agency designated by
local law enacted pursuant to this section may increase such percentages
at the commissioner's discretion in order to maintain the special rebate
at levels comparable to those historically available under the program,
pursuant to rules that are generally applicable to distinct classes of
energy users.

(5) Requiring a utility that delivers natural gas to an on-site
cogenerator that produces electricity for an eligible energy user which
cogenerator and user are certified before July first, two thousand
three, or to a clean on-site cogenerator that produces electricity for
an eligible energy user and is certified after June thirtieth, two
thousand three, to make a special rebate against the energy bill
rendered to such on-site cogenerator or clean on-site cogenerator by
such utility for the sale or delivery, or both, of such gas in the
amount or amounts derived by taking the product of a base adjustment
multiplied by an eligibility factor, multiplied by the number of
kilowatt hours of electricity produced by such on-site cogenerator or
clean on-site cogenerator and used by such eligible energy user during
the billing period, excluding charges for natural gas used to generate
electricity used for heating any premises or by any energy user not
located on the same site, any special charges on such bill, including
but not limited to, collection charges, late payment charges, excess
distribution charges, or any additional fee charged by a vendor of
energy services as authorized by this subdivision, and charges for
energy which is resold; where the base adjustment shall equal three
cents increased by nine one-hundredths cent each January first occurring
after December thirty-first, nineteen hundred eighty-seven and before
June thirtieth, two thousand three, and the eligibility factor shall
equal one hundred percent during the first eight years after initial
certification as an eligible energy user as defined in paragraphs one
and two of subdivision (a) of section twenty-five-s of this article,
eighty percent during the ninth such year, sixty percent during the
tenth such year, forty percent during the eleventh such year and twenty
percent during the twelfth and final such year, such years to be
calculated in accordance with the provisions of this section, provided
that the number of kilowatt hours on which the total of the special
rebates payable to a clean on-site cogenerator is based in any year
pursuant to this paragraph shall not exceed thirteen million one hundred
forty thousand.

(6) Any local law enacted pursuant to this section shall contain a
provision or provisions allowing for a credit against the amount of such
tax imposed pursuant to authority contained in subdivision (a) of
section twelve hundred one of the tax law by such city upon such
utilities in the amounts of the special rebates and discounts made by
such utilities.

(7) Notwithstanding any provisions of this subdivision, the special
rebates and discounts provided by the Long Island Power Authority, or
its subsidiary, pursuant to this subdivision shall not exceed the amount
of the payment made by or on behalf of such authority to such city as a
payment that is equivalent to the tax imposed by such city pursuant to
this subdivision of section twelve hundred one of the tax law. Special
rebates and discounts shall be reduced and/or allocated proportionate to
the benefit they would otherwise be eligible for among eligible energy
users, public utility services, vendors of energy services, and on-site
cogenerators where necessary to comply with this paragraph pursuant to
rules of the commissioner of the agency designated by local law enacted
pursuant to this section.

(8) Notwithstanding any provisions of this subdivision, special
rebates and discounts shall not exceed ten thousand dollars per year per
employee or full-time equivalent with respect to applications submitted
pursuant to this article after June thirtieth, two thousand three.

(b) Eligible energy users meeting the criteria contained in paragraph
one of subdivision (a) of this section and qualified eligible energy
users meeting the criteria contained in paragraph one of subdivision (r)
of section twenty-five-s of this article shall be eligible for special
rebates for a period not to exceed one hundred forty-four months
calculated from the beginning of the month immediately following their
date of certification of eligibility. Eligible energy users meeting the
criteria contained in paragraph two of subdivision (a) of section
twenty-five-s of this article shall be eligible for special rebates for
a period calculated from the beginning of the month immediately
following their date of certification for so long as they remain in
occupancy in the specially eligible premises, but not beyond the period
of one hundred forty-four months from the beginning of the month
immediately following the date of certification of the first eligible
energy user occupying such specially eligible premises. The amounts of
rebates made to such an eligible energy user meeting the criteria
contained in such paragraph two shall be determined in accordance with
the schedule contained in paragraph four of subdivision (a) hereof as if
such eligible energy user had been certified at the same time as such
first eligible energy user was certified. A qualified eligible energy
user that takes occupancy of targeted eligible premises shall be
eligible for special rebates for a period calculated from the beginning
of the month immediately following its date of certification as a
qualified eligible energy user for so long as it remains in occupancy in
the targeted eligible premises, but not beyond the period of one hundred
forty-four months from the beginning of the month immediately following
the date of certification of the first qualified eligible energy user
occupying such targeted eligible premises. The amounts of rebates made
to a qualified eligible energy user that takes occupancy of targeted
eligible premises shall be determined in accordance with the schedule
contained in paragraph four subdivision (a) of this section as if such
qualified eligible energy user had been certified at the same time as
such first qualified eligible energy user was certified. An on-site
cogenerator or clean on-site cogenerator shall be eligible for special
rebates for a period not to exceed the period during which the eligible
energy user served by such on-site cogenerator or clean on-site
cogenerator would have been eligible for a special rebate under the
provisions of this subdivision had it purchased energy services directly
from a utility.

(c) (1) The city agency designated in the local law enacted pursuant
to this section may adopt such rules as the agency deems necessary to
promote economic development and to effectuate the purposes of this
article, including rules to determine the extent to which charges are
eligible charges, eligible public utility service charges, eligible
on-site cogenerator charges or special eligible charges and rules to
provide for such administrative charges or fees as are necessary to
defray expenses in administering the special rebates and discounts
provided pursuant to this article.

(2) No eligible energy user, qualified eligible energy user, on-site
cogenerator, or clean on-site cogenerator shall receive a rebate
pursuant to this article until it has obtained a certification from the
appropriate city agency in accordance with a local law enacted pursuant
to this section. No such certification for a qualified eligible energy
user shall be issued on or after November first, two thousand. No such
certification of any other eligible energy user, on-site cogenerator, or
clean on-site cogenerator shall be issued on or after July first, two
thousand twenty-seven.

(3) A utility and a vendor of energy services shall keep records of
all transactions subject to this article and make such records available
to the agency of the city designated by local law enacted pursuant to
this section.

(d) (1) Each utility shall reduce each bill for energy services or
natural gas for each eligible energy user, vendor of energy services,
on-site cogenerator or clean on-site cogenerator as follows:

(i) a bill for the sale and delivery of natural gas rendered to an
on-site cogenerator or clean on-site cogenerator entitled to a special
rebate pursuant to the provisions of paragraph five of subdivision (a)
of this section shall be reduced by the full amount of the special
rebate that shall have accrued for the period covered by each such bill;

(ii) a bill for energy services rendered to any other eligible energy
user or on-site cogenerator shall be reduced by the full amount of the
special rebate that shall have accrued for the period covered by each
such bill;

(iii) a bill for energy services rendered to a vendor of energy
services that has provided a special rebate to an eligible energy user
or on-site cogenerator in accordance with paragraph three of subdivision
(a) of this section shall be reduced by such utility by the aggregate
amount of all such special rebates;

(iv) provided, however, such utility shall not be required to provide
a special rebate or discount in an amount that exceeds the amount of
such bill for the sale and delivery of natural gas rendered to an
on-site cogenerator or clean on-site cogenerator entitled to a special
rebate pursuant to the provisions of paragraph five of subdivision (a)
of this section or, in the case of any other eligible energy user or
on-site cogenerator, the amount of such bill for energy services, and
provided, further, that no utility subject to the provisions of
subdivision (a) of this section shall be required to carry forward on
its books and records any special rebates or discounts not made in
accordance with this sentence to such bills for subsequent periods. Such
discount shall be made within four months from the time certification of
special rebates is made in accordance with subparagraph (iii) or (iv) of
paragraph one of subdivision (a) of this section. Such amount shall be
separately stated and shown on such bills. The credit against the tax
set forth in subdivision (a) of this section shall be used to reduce the
monthly payments of such tax otherwise required by law.

(2) A public utility service that provides special rebates for
eligible energy users or qualified eligible energy users shall reduce
each bill rendered to each such user by the full amount of the special
rebate that shall have accrued for the period covered by each such bill
in accordance with paragraph two of subdivision (a) of this section.
Such amounts shall be separately stated and shown on such bills.

(3) Each such vendor of energy services that has elected to provide
special rebates for eligible energy users, qualified eligible energy
users or on-site cogenerators shall reduce each bill rendered to each
such user or cogenerator by the full amount of the special rebate that
shall have accrued for the period covered by each such bill in
accordance with paragraph three of subdivision (a) of this section. Such
amounts shall be separately stated and shown on such bills.

(e) The credit against the tax set forth in paragraph six of
subdivision (a) of this section shall be used to reduce the monthly
payments of such tax otherwise required by law.