NYSERDA Announces $10 Million Available Through Carbon Neutral Community Economic Development Program
Will Accelerate Decarbonization and Economic Development to Revitalize Disadvantaged Communities
May 16, 2022
The New York State Energy Research and Development Authority (NYSERDA) today announced $10 million is available under the fourth Round of the Carbon Neutral Community Economic Development Program as part of Round XII of Governor Kathy Hochul’s Regional Economic Development Council initiative announced May 2nd. Projects funded through this program are accelerating decarbonization and economic development in disadvantaged communities. Today’s announcement supports Governor Hochul’s ambitious goal to reduce greenhouse gas emissions 85 percent by 2050 and ensure that clean energy investments benefit disadvantaged communities across the state.
Doreen Harris, President and CEO, NYSERDA said, “NYSERDA is looking forward to seeing more great project proposals that have the potential to revitalize their communities while advancing energy efficiency, electrification and the incorporation of on-site renewable energy. With each round of funding, we are reducing climate change-causing building emissions in support of achieving a carbon neutral building stock by mid-century as well as bringing job opportunities to under resourced communities.”
The Carbon Neutral Community Economic Development program is administered by NYSERDA in partnership with Empire State Development (ESD) and the New York State Department of State’s Downtown Revitalization Initiative, and it provides incentives with focused support for projects located in Disadvantaged Communities and Downtown Revitalization Initiative districts, as well as commercial and mixed-use facilities that are regionally significant, to reduce emissions and improve quality of life for residents and visitors. In addition, NYSERDA prioritizes investments in decarbonization projects that result in jobs that provide family-sustaining wages and benefits, helping to support the transition to a clean energy economy. The deadline for applications is Friday, July 29, 2022 at 4:00 p.m. Interested proposers can find more information or apply to this program here .
The fourth round of the Carbon Neutral Community Economic Development program includes three categories, with a new Category C, in which funding is available:
- Eligible New York State commercial, industrial, institutional, municipal and mixed-use applicants may apply for incentives for the construction of, or renovation to existing buildings, including an existing central plant, designed to achieve carbon neutral or net zero energy performance and demonstrate how the approach is replicable cost effective. Project awards will be up to 60 percent of eligible costs or $2 million whichever is less.
- Eligible communities, neighborhoods, campuses and owners of large real estate portfolios in New York State with projects of at least 500,000 square feet (of new construction or rehabilitation), or a total project implementation cost of at least $50 million, may apply for incentives for the planning, energy modeling and design necessary to convert the proposed building portfolio to achieve carbon neutral or net zero energy performance. Project awards will be up to 75 percent of the eligible costs, with a minimum project award amount of $1 million and a maximum project award amount of $2 million.
- Eligible New York State large commercial, industrial, or institutional applicants may apply for incentives for the incremental cost of planning, design, construction of, or renovation to existing campus, buildings or central plant, including installation of technologies and modification of industrial processes to significantly reduce their greenhouse gas or greenhouse gas equivalent emissions while demonstrating the project’s regional significance and statewide impacts. Project awards will be up to 60 percent of eligible costs or $2 million, whichever is less.
The program has 35 active projects that have been awarded $40 million in incentives since it was launched in 2018. Eight of the 19 projects announced last year are located in Disadvantaged Communities, and received $8.4 million of the $21 million awarded which is consistent the state’s goal of 40 percent of clean energy investments benefitting disadvantaged communities.
Buildings account for more than a third of greenhouse gas emissions in New York State, and most of the State’s current building stock was constructed before energy codes were passed and were, therefore, not constructed to be energy efficient. Decarbonized buildings and communities will help improve building resiliency, occupant health and productivity.
The 2022 funding round for the Carbon Neutral Economic Development program is part of the State Consolidated Funding Application (CFA) enabling businesses, municipalities, not-for-profits and the public to apply for assistance through a single application from dozens of state programs for job-creation and community development projects.
Funding is available through the State's 10-year, $6 billion Clean Energy Fund and through the Regional Greenhouse Gas Initiative (RGGI).
New York State's Nation-Leading Climate Act
New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. NYSERDA professionals work to protect the environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York State since 1975. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, or Instagram.
About the Consolidated Funding Application
As part of the State’s efforts to improve its economic development model, the Consolidated Funding Application was created to streamline and expedite the grant application process. The CFA process marks a fundamental shift in the way state resources are allocated, ensuring less bureaucracy and greater efficiency to fulfill local economic development needs. The CFA serves as the single-entry point for access to economic development funding, ensuring applicants no longer have to slowly navigate multiple agencies and sources without any mechanism for coordination. Now, economic development projects use the CFA as a support mechanism to access multiple state funding sources through one application, making the process quicker, easier, and more productive. Learn more about the CFA here .