Financing accelerates decarbonization, combats climate change and stimulates economic growth
May 13, 2024
The New York State Energy Research and Development Authority (NYSERDA) announced the sixth round of the Commercial and Industrial (C&I) Carbon Challenge, making $10 million available as part of Round XIV of the Regional Economic Development Council initiative (REDC) from Governor Kathy Hochul. [earlier today]. The C&I Carbon Challenge will accelerate decarbonization by reducing carbon emissions in commercial and industrial businesses and institutions, helping to combat climate change and driving economic growth across the state. Today's announcement supports the goal of New York's nationally leading Climate Leadership and Community Protection Act to reduce greenhouse gas emissions by 85% by 2050.
Doreen M. Harris, President and CEO of NYSERDA, said: โBuilding a better New York means continuing to fight climate change, and this funding opportunity is another demonstration of our commitment to transforming the way we can design, operate and better power our buildings and industrial facilities at the state level. With the launch of this sixth round, the C&I Carbon Challenge will continue to provide large non-residential energy users with resources to unlock profound decarbonization opportunities while reducing their carbon footprint and managing energy costs.โ
He C&I Carbon Challenge is a competitive program that provides financing to large energy users to implement profitable clean energy projects that reduce carbon emissions. Eligible businesses and institutions include, but are not limited to, manufacturers, colleges, universities, healthcare facilities, and office building owners in New York State, as well as decarbonization solution providers working with these entities. Project proposals may employ a combination of energy efficiency strategies or manufacturing processes, carbon capture technology, renewable generation or energy storage. A variety of projects that reduce emissions are eligible, with a focus on those that electrify buildings or manufacturing equipment, capture greenhouse gas emissions, reduce emissions from industrial thermal processes, and/or make operational and technical changes that reduce emissions from industrial processes.
Through the challenge, NYSERDA will award grants ranging from $500,000 to $3.75 million to partially offset the costs of clean energy projects for the state's largest commercial and industrial energy users. To be eligible, a portfolio of projects must reduce at least 25,000 metric tons of carbon dioxide equivalent (mtCO2e) over the life of the projects. The deadline to apply through the State Office Consolidated financing application (CFA) is July 31, 2024 at 4:00 p.m.
Winners are selected based on their plans for project implementation, institutional commitment to sustainability, overall level of greenhouse gas emissions reduction, participation in federal funding programs for decarbonization, resilience impacts of the project and its potential to beneficially impact disadvantaged communities. NYSERDA's scoring criteria award points for greenhouse gas emissions reductions that occur in designated disadvantaged communities and/or provide benefits in such communities. Additionally, Regional Economic Development Councils (REDCs) will review projects and provide scores that reflect how well a project aligns with a region's goals and strategies.
The REDC process continues to support and empower regional stakeholders in developing strategic plans to leverage local resources to stimulate economic development and create jobs across the state. To date, through the REDC Initiative, more than $8 billion has been awarded to more than 9,900 job creation and community development projects consistent with each region's strategic plan. Since its inception, the C&I Carbon Challenge has awarded 19 awards to companies and higher education institutions that will cumulatively reduce 3 million metric tons of carbon dioxide equivalent, equivalent to 12 months of annual exhaust emissions from 714,000 cars. In addition, it has fostered greater interest in clean energy projects and has served to stimulate the energy efficiency market related to commercial and industrial buildings. NYSERDA expects to announce the sixth round awards in late 2024.
Buildings are one of the largest sources of greenhouse gas emissions in New York State, and retrofitting our buildings by integrating energy efficiency measures and electrification will help achieve healthier, more comfortable buildings and reduce carbon pollution . NYSERDA programs can benefit most businesses and organizations across the state, but large energy consumers have unique needs when it comes to increasing efficiency and reducing emissions. Leveraging New York State's support for private sector solutions to reduce the cost of clean energy, the C&I Carbon Challenge gives large energy consumers the flexibility to leverage their in-house expertise to reduce their carbon footprint and control their energy costs.
Funding is available through the state's $6 billion, 10-year program. Clean Energy Fund.
New York State's Nationally Leading Climate Plan
New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors, and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the most aggressive climate and clean energy initiatives in the country, New York is advancing a suite of efforts, including the New York Cap-and-Invest (NYCI) program and other complementary policies, to reduce greenhouse gas emissions. greenhouse gas by 40% by 2030 and 85% by 2050 from 1990 levels. New York is also on track to achieve a zero-emissions power sector by 2040, including 70% renewable energy generation by 2030. , and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented investments in clean energy, including more than $28 billion in 61 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions , $3.3 billion to expand solar energy, nearly $3 billion for clean energy transportation initiatives and more than $2 billion in NY Green Bank commitments. These and other investments support more than 170,000 jobs in New York's clean energy sector starting in 2022 and more than 3,000% growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicles. regulations, including a requirement that all new passenger cars and light trucks sold in the state be zero emissions by 2035. Partnerships continue to drive New York's climate action with more than 400 climate-smart communities registered and more than 130 certified, nearly 500 clean energy communities and the state's largest community air monitoring initiative in 10 disadvantaged communities across the state to help combat air pollution and combat climate change.
About NYSERDA
NYSERDA, a public benefit corporation, provides objective information and analysis, innovative programs, technical expertise and financing to help New Yorkers increase energy efficiency, save money, use renewable energy and reduce dependence 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, visitnyserda.ny.gov or follow us on Twitter, Facebook, YouTube or Instagram.
About the Regional Economic Development Councils
The Regional Economic Development Council initiative is a key component of the State's approach to state investment and economic development. In 2011, ten regional councils were established to develop long-term strategic plans for the economic growth of their regions. The Councils are public-private partnerships made up of local experts and stakeholders from businesses, academia, local governments and non-governmental organizations. Regional Councils have redefined how New York invests in jobs and economic growth by implementing a bottom-up, community-based approach and establishing a competitive process for state resources. Get more information at regionaltips.ny.gov .
About the Consolidated Financing Request
The Consolidated Funding Application was created to streamline and accelerate the grant application process. The CFA process marks a fundamental change in the way state resources are allocated, ensuring less bureaucracy and greater efficiency to meet local economic development needs. The CFA serves as a single entry point for accessing economic development financing, ensuring that applicants no longer have to slowly navigate multiple agencies and sources without any coordination mechanism. Economic development projects now use the CFA as a supporting mechanism to access multiple sources of state funding through a single application, making the process faster, easier and more productive. Learn more about the CFA here .
