New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter IX - New York State Economic Development Power Allocation Board
Part 370 - Procedures For Allocation Of Economic Development Power
Section 370.5 - Requirements and criteria for economic development power allocations

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 370.5

Current through Register Vol. 45, No. 52, December 27, 2023

Applications for economic development power allocations shall be evaluated by the board according to the following requirements and criteria.

(a) Requirements and criteria relating to power allocations for economic development purposes. Each application for an economic development power allocation for economic development purposes must demonstrate to the board compliance with the following requirements:

(1) compliance with any statutory, license or contractual criteria applicable to the power available;

(2) the requested power would serve new electrical demand at a facility at which new jobs would be created; and

(3) the requested allocation, if approved, would result in the business in question having a normal minimum peak electric demand of at least 400 kilowatts.

Such applications shall be evaluated by the board according to the following criteria:

(i) the number of new jobs created as a result of the proposed economic development power allocation;

(ii) the proposed recipient's long-term commitment to New York State, as evidenced by the proposed recipient's current and/or planned capital investment in business facilities in New York State;

(iii) the ratio of the number of jobs to be created to the amount of the proposed economic development power allocation;

(iv) the types of jobs created, as measured by wage and benefit levels, security and stability of employment;

(v) the type and cost of buildings, equipment and facilities to be constructed, enlarged or installed;

(vi) the extent to which the proposed economic development power allocation will affect the overall productivity or competitiveness of the proposed recipient's business and its existing employment within the State;

(vii) the extent to which the proposed economic development power allocation may result in a competitive disadvantage for other businesses in the State;

(viii) the general economic conditions and economic distress in the area in which the proposed recipient's business facility would be located and the extent to which the proposed economic development power allocation could contribute to the alleviation of such distress;

(ix) the growth potential of the business facility and the contribution of economic strength to the area in which the business facility is or would be located;

(x) the extent of the proposed recipient's willingness to make jobs available to persons defined as eligible for services under the Federal Job Training Partnership Act of 1982 and the extent of the proposed recipient's willingness to satisfy affirmative action goals;

(xi) the extent to which the proposed economic development power allocation is consistent with State, regional and local economic development strategies and priorities and supported by local units of government in the area in which the business is located; and

(xii) the impact of the proposed economic development power allocation on the operation of any other facilities of the applicant, on other businesses within the State, and upon other electric ratepayers.

(b) Requirements and criteria relating to power allocations for revitalization purposes. An applicant for an economic development power allocation for revitalization purposes must demonstrate to the board:

(1) that the proposed recipient of such power is in serious long-term distress that is not primarily caused by normal short-term changes in the business cycle;

(2) that the proposed recipient has formulated and will implement a comprehensive business revitalization plan which is described in the application, and which:
(i) contains a detailed strategy for actions to be taken by the proposed recipient to continue as a successful business, including but not limited to productivity and efficiency improvements, changes in operations, financing or management, measures to enhance labor and management cooperation and to improve the skills and performance of the work force at all levels, capital investment in new equipment and plant modernization, development of new markets and products, and such other actions as will enable the business to stabilize and sustain its operations;

(ii) has been endorsed by the board of directors if the recipient is a corporation, or the owners of the proposed recipient's business if the recipient is not a corporation; and

(iii) establishes a verifiable schedule for completion of the proposed actions;

(3) that the proposed allocation of economic development power would significantly contribute to the revitalization plan;

(4) that absent the proposed allocation, the business is likely to close, partially close or relocate out-of-state, resulting in the loss of substantial numbers of jobs;

(5) that the business is an important employer in the community and efforts to revitalize the business are in the long-term interests of both employees and the community;

(6) that a reasonable prospect exists that the proposed revitalization plan will enable the business to remain competitive and become profitable and preserve jobs for a substantial period of time;

(7) that the proposed recipient demonstrates cooperation with the local electricity distributor and other available sources of assistance to reduce energy costs to the maximum extent practicable, through conservation and load management;

(8) that the proposed allocation would not unduly affect the cost of electric service to customers of the local electricity distributor; and

(9) that the application complies with any statutory, license or contractual criteria applicable to the power available.

Applications for economic development power for revitalization purposes complying with the requirements set forth in this subdivision will be evaluated by the board based on the criteria set forth in subdivision (a) of this section.

(c) Requirements and criteria relating to power allocations for job retention purposes in cities of one million persons or more and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester. An applicant for an economic development power allocation for job retention purposes on behalf of a person or entity operating a business in a city having a population of one million persons or more or in the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester must demonstrate to the board:

(1) compliance with any statutory, license or contractual criteria applicable to the power available;

(2) that the business plans to relocate out-of-state, resulting in the loss of a substantial number of jobs, and that upon receipt of an economic development power allocation, the entity operating the business will commit to new investments in real property of at least 121/2percent of the effective market value or to relocate within such city or county to comparable facilities; and

(3) that the applicant or the entity operating the business first has made the greatest practicable use of all other potential assistance and means, including but not limited to other low-cost power and/or energy, tax and energy cost-abatement measures and administrative steps to make possible the business, new investment or relocation.

For the purposes of this subdivision, effective market value shall be determined by dividing the assessed value of the property on the latest completed assessment roll by the latest class ratio applicable to the class in which the property is classified and promulgated by the State Board of Equalization and Assessment pursuant to article 12 of the Real Property Tax Law, or in those instances where no class ratio is applicable, by such other measure of effective market value as the Board shall deem appropriate. Applications for economic development power for job retention purposes complying with the requirements set forth in this subdivision will be evaluated by the board based on the criteria set forth in subdivision (a) of this section.

(d) Requirements and criteria relating to bulk power allocations. An application for a bulk allocation of economic development power for economic development purposes or revitalization purposes must meet the requirements applicable to applications for allocations of power for such purposes set forth in this section; must indicate the estimated number of jobs created or retained as a result of the proposed allocation; and must indicate a specified period of time, acceptable to the board, in which the applicant will execute contracts with the ultimate recipients of the power. An application for a bulk allocation of power for economic development or revitalization purposes will be evaluated based on the criteria applicable to review of applications for allocations of power for that purpose set forth in this section.

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