Lower Manhattan Energy Program

The Lower Manhattan Energy Program (LMEP) helps property owners and business renters save money on electricity. They can save up to 45 percent on electricity costs. These savings last for eight years. After that, the savings go down by 20 percent each year for four more years.

Lower Manhattan is the area south of Murray and Frankfort streets.

To apply for LMEP, a building must meet one of these criteria:

• Be applying to the Industrial and Commercial Abatement Program (ICAP).
• Be applying to the NYC Industrial Development Agency (NYCIDA).
• Be owned by the City of New York or Empire State Development Corporation (ESDC).

For ICAP applicants

• Show proof to the Department of Finance (DOF) of a minimum required expenditure (MRE), which is an investment that improved the property by more than 30 percent of the assessed valuation of the building and land.

For City, ESDC or NYCIDA-owned buildings

• Show proof of an MRE to the NYC Department of Small Business Services (SBS) that you improved the real property by more than 20 percent of the assessed value of the building and land.

Additional requirements

• NYCIDA applicants must file an LMEP application before the NYCIDA Board approves it (and approval of NYCIDA inducement resolution).
• Applicants managing a City- or ESDC-owned facility must file an LMEP application before signing a lease.

• You must get electricity from your landlord’s account or directly from the utility company

• Property information should include:

  • block and lot number
  • assessed value

• Notarized list of tenants that should include:

  • business name
  • contact person
  • telephone number
  • number of employees
  • business activity
  • location in the building
  • meter number (if sub-metered by landlord) or account number (if directly metered by utility)
  • square footage of the area occupied

• List of ineligible tenants and subtenants, including:

  • name
  • utility account number or sub-meter, if applicable
  • name on account (landlord or tenant)
  • mailing address/contact person

• Copies of 12 months of utility bills, if applicable, for each account number servicing the building

• A signed copy of the deed and/or lease

• An architectural rendering of the building floor plans

• Businesses must have an Employer Identification Number (EIN); sole proprietors without an EIN can use a Social Security Number (SSN)

• The estimated start and completion dates of renovations

• If you have ICAP, you need:

  • name on ICAP application
  • ICAP application number
  • assessed value of the building and land
  • estimated total construction/renovation costs
  • start and end dates of construction/renovation

• Submit your LMEP application before the building permit is issued. If you are applying based on ICAP eligibility and have not yet received your ICAP application number from the NYC Department of Finance (DOF), you may still submit your LMEP application while awaiting that number. You do not need to have the ICAP application number at the time of submission. Applications received after the building permit has been issued will be denied.

• If you have NYCIDA, you need the date you submitted the NYCIDA application

• If you are leasing from Empire State Development Corporation or the City of New York, you need the date the lease was fully executed or is expected to be executed

• The projected monthly electric bill for building accounts

• The location of main and sub-meters, if applicable, and the percent “markup” charge on sub-meters, if applicable

• Information on all individuals with 10 percent or more ownership interest in the building, including:

  • name, date of birth, and home address
  • percent of ownership
  • Social Security Number
  • other business affiliations

• Provide SBS with a copy of the New York City Building Permit for the project

• Verify minimum required expenditures (MRE): If you are an ICAP applicant, the MRE is 30 percent of the assessed value of the property and must be submitted to the Department of Finance. If you are an NYCIDA applicant or an occupant of a City/State-owned facility, the MRE is 20 percent of the assessed value of the property and must be submitted to the SBS.

• If your application meets all eligibility criteria, a Certificate of Eligibility for each eligible utility account is sent to you and the utility confirming the start of the program benefit. Approved buildings must notify SBS of any changes in eligibility or additional utility accounts during the life of the benefit.

• Throughout the program, the property owner must submit tenant status updates and report any changes or additional utility accounts to SBS on an annual basis.
  SBS will notify you of its final determination.

Application Fee

A non-refundable application fee must be sent with every application. The fees, based on the gross square footage of the eligible building, are as follows:

• Up to 10,000 square feet = $500
• 10,001 square feet to 25,000 square feet = $1,000
• 25,001 square feet to 50,000 square feet = $1,250
• 50,001 square feet to 100,000 square feet = $1,500
• 100,001 square feet to 250,000 square feet = $2,500
• Greater than 250,000 square feet = $5,000

Accepted payment methods (payable to the New York City Department of Small Business Services):

• personal check
• certified check
• money order

Mail application fee to:

New York City Department of Small Business Services
Attention: Business Incentives Unit
1 Liberty Plaza, 11th Floor
New York, NY 10006

• If you are a tenant without a direct Con Edison account and occupy 10,000 square feet or more, or if you occupy an entire floor, you must have your own meter
• Rebates for common areas must be calculated every month by program rules
• Landlords must give energy credits to all tenants who qualify
• All rental invoices to tenants must state “the tenant is receiving an energy credit through LMEP”
• The landlord charge for redistributing energy cannot be more than 12 percent
• The NYC Department of Small Business Services can request energy surveys to tell apart eligible from ineligible energy uses
• Public benefit corporations, residential units, hotels, and most retail businesses: cannot join
• Industrial businesses should apply through the Energy Cost Savings Program (ECSP)
• Additional restrictions apply; check the application form for more details on program rules and limits

• Pre-screen with SBS to verify eligibility for the LMEP and clarify any questions regarding application procedures. Call 311 and ask for LMEP before beginning the capital improvement project.
• Review the documentation and information required to submit an LMEP application, including the list of prerequisites.
• Complete the LMEP application according to the provided instructions Some documentation may not be available at the time of application.
• Email the LMEP application to ECSPApplications@sbs.nyc.gov.