Energy Cost Savings Program

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General Information Links Prerequisites Fees, Tax Rates, and Payment Information Additional Notes Contact Information Disclaimer

General information

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Agency: Small Business Services, Department of (CITY) Description: The Energy Cost Savings Program (ECSP) can reduce regulated energy costs up to 45 percent and regulated natural gas costs up to 35 percent for eligible businesses. Regulated costs are the transmission and distribution costs by the regulated utility. The benefits associated with ECSP last for eight years followed by a four year phase-out during which benefits are decreased by 20% per year. Businesses eligible for ECSP benefits include the following: • Businesses that are moving from outside New York City or from designated areas of Long Island City (Queens) and Fulton Ferry (Brooklyn) to all areas of the City other than south of 96th Street in Manhattan, Long Island City, and Fulton Ferry; • Businesses moving from Manhattan south of the center line of 96th Street to Manhattan north of the center line of 96th Street or the other four boroughs; • Businesses making investments in real property that will improve such property by at least 30% of the property’s assessed value and will be approved for additional benefits through the Industrial Development Agency (IDA), or will operate within a building qualified for benefits through the New York City Industrial and Commercial Abatement Program (ICAP); • Businesses that manage and/or operate in a building owned by the City of New York or Empire State Development Corporation, where the property has been improved by at least 10% of the property’s assessed value. Special Eligible Premises (SEP) are buildings which have previously undergone capital improvements and been approved by ECSP as eligible for benefits. SEP tenants occupying a space which has never received benefits may qualify for a full 12-year benefit; those businesses replacing a tenant that previously received ECSP benefits may be eligible to receive the remaining years of the benefit schedule of the prior tenant. To do so, the business must meet all program eligibility criteria and apply within 120 days of signing a lease to the premise.

Links

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Prerequisites

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1.  Federal Tax ID. 2.  A Standard Industrial Classification (SIC) and / or North American Industry Classification System (NAICS) Code. 3.  Property block number, lot number, and square footage of the eligible facility. 4.  Copy of the lease or contract of sale for the eligible facility. 5.  Copies of utility bills for the most recent 12 month period for each account number (if applicable). If 12 months are unavailable, copies of the most recent utility bill(s). 6.  Copy of one week’s payroll from a recent pay period. 7.  Electrical and natural gas account information, including customer account number, utility company, meter addresses (if different from mailing address), projected monthly electricity bill, and the types of machinery using electricity and / or natural gas. If the electricity / natural gas are sub-metered, indicate if there is a “markup” charged by the landlord (if applicable). Under ECSP rules, markups charged by landlords cannot exceed 12%. 8.  Business name, contact person, and telephone number of all existing and / or anticipated future tenants and / or subtenants (if applicable). 9.  Information on all stockholders, partners, officers and directors who have an ownership interest in the business, including: name, percent of ownership, date of birth, home address, social security number, and other business affiliations. 10.  If the applicant is eligible through ICAP: ICAP application number, assessed value of the building, estimated construction and / or renovation costs, and start and end date of the construction / renovation period. 11.  If the applicant is eligible as a tenant within a Special Eligible Premise (SEP): Name and address of landlord, date lease was signed (if applicable), date building was approved as a SEP by DSBS, copy of the approval notice issued by DSBS, copy of the ECSP Certificate of Eligibility for the building, and evidence that the landlord has made improvements required to meet the assessed value investment threshold (also known as the minimum required expenditure or MRE). 12.  If the applicant is eligible through IDA: assessed values of eligible block(s) and / or lot(s), estimated construction / renovation costs, and start and end date of the construction / renovation period. 13.  If the applicant is relocating: copy of the lease or deed of the move-out location as well as a copy of the unsigned draft lease or unsigned draft contract of sale of the move-in location (this must be submitted before moving to the new location). 14.  Businesses or developers renovating New York City or select State owned property must file an ECSP application prior to signing a lease with the City or State to manage the property, and before the issuance of a building permit for construction and / or renovation.

Fees, Tax Rates, and Payment Information

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	Fees:
	A non-refundable application fee must be sent with every application. The fees, based on gross square footage of the eligible building, are as follows: Less than 10,000sf = $500 10,001sf to 25,000sf = $1,000 25,001sf to 50,000sf = $1,250 50,001sf to 100,000sf = $1,500 100,001sf to 250,000sf = $2,500 Greater than 250,000sf = $5,000

	Payment Types Accepted:
	Personal Check (Payable to New York City Department of Small Business Services) Certified Check (Payable to New York City Department of Small Business Services) Money Order (Payable to New York City Department of Small Business Services)

Additional notes

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	ESCP credits are only applied against the regulated transmission and delivery portion of the electricity or gas bill for qualified users, not to the entire utility bill. In the area of Manhattan south of the center line of 96th Street, ECSP is ONLY available to industrial businesses. In addition to standard ECSP benefits, an additional benefit of 4.44 cents / kilowatt hour is available to businesses which install a distributed generation (“cogeneration”) system. Relocating businesses must apply before the lease or contract of sale to the new location is signed. Businesses making capital improvements must submit applications before the issuance of the project’s building permit or start of renovation / construction work (if a permit is not required). Heating costs are not eligible under this program. Benefits are annually capped at $10,000 per employee. Additional restrictions may apply; contact DSBS for a detailed description of program limitations and requirements.

Contact Information

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Department of Small Business Services, Business Incentives Unit 110 William Street, 7th Floor New York, NY 10038 For further assistance please call 311 and ask for: Energy Cost Savings Program Website: http://www.nyc.gov/sbs

Disclaimer

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This page provides general information only. The information does not address all relevant regulatory requirements of City, State or Federal Agencies, nor does it address requirements with which the business must comply on an ongoing basis. It is the business owner's responsibility to meet all City, State and Federal requirements. Failure to comply with all applicable laws and regulations may result in fines or in the suspension and/or revocation of licenses or permits, or other penalties as allowed by law. Please note that this information is not legal advice; you can only obtain legal advice from a lawyer. For more information or assistance, please contact the issuing Agency, using the contact information above, or call 311 (or 212-NEW-YORK if outside of New York City).