NYCEDC – Financing & Incentives – Energy Savings

Energy Savings

LOWER MANHATTAN ENERGY PROGRAM

	Program Description
	Eligibility & Tips
	Program Benefits

	Example Benefits Calculation
	Contact Information

PROGRAM DESCRIPTION

Lower Manhattan Energy Program (LMEP) is administered by the Department of Small Business Services and is targeted to commercial tenants in Lower Manhattan in the area of south of Murray Street.

LMEP description (61 KB)

ELIGIBILITY & TIPS

GENERAL ELIGIBILITY

Commercial tenants in buildings that have been renovated in excess of 20 percent of the property’s assessed value and approved for real estate tax benefits through the Industrial and Commercial Incentive Program (ICIP) or for benefits through the New York City Industrial Development Agency (IDA).
Commercial tenants in buildings owned by the City of New York or the Empire State Development Corporation (ESDC) and renovated in excess of 20 percent of the property’s assessed value.
Retail businesses, residential units and hotels are not eligible.
Building owners must submit an LMEP application to the Department of Small Business Services (SBS) prior to the issuance of the initial building permit for renovation (prior to the commencement of work if a building permit is not required.)
Building owners seeking eligibility through the IDA or those managing a City or ESDC owned facility must also file an LMEP application prior to approval by the IDA Board (approval of IDA inducement resolution) or prior to signing a lease with the City or ESDC, whichever is applicable.

TIPS

Applications must be filed before the issuance of the initial building permit for renovation or before capital improvements are made.
Businesses applying in connection with IDA benefits must apply prior to execution of an IDA Inducement Resolution.
Energy must be directly metered or building must meet specific sub-metering criteria.
Sub-metered energy cannot be marked up by more than 12%.
Similar benefits are available for businesses in Manhattan above 96th Street and in the outer boroughs under the Energy Cost Savings Program (ECSP).

PROGRAM BENEFITS

LMEP can reduce regulated electricity costs up to 45 percent for the first eight years (nine years for landmarked buildings), declining at one-fifth of the reduction per year for the remaining four years.

EXAMPLE BENEFITS CALCULATION

XYZ Corporation, a financial services firm with 300 employees, relocates from outside of New York City to 100,000 SF of office space in Lower Manhattan. The company averages 16 daily operating hours of medium commercial usage, for an annual electricity delivery bill of $81,004.

Year

ICIP Percent
ICIP Benefit

1

100%
$ 36,452

—

—
—

8

100%
$ 36,452

9

80%
$29,162

10

60%
$21,871

11

40%
$14,581

12

20%
$7,290

Total (Nominal)

$364,520

NPV (6.25%)

$263,970

As shown above, LMEP would result in aggregate savings of $280,469 in electricity delivery expenses over 12 years. Note: LMEP Percent is the percentage of the initial year’s benefit that is available each year.

CONTACT INFORMATION

Get more information about LMEP in the New York City Department of Business Services section of the City’s Website

Small Business Services
110 William Street
New York, NY 10038
311 or 212-NEW-YORK (from outside New York City)
businesssolutions@sbs.nyc.gov