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Concentration of CO2 in the Atmosphere

Climate and Energy Proposals

2022 State of the State Summary of Proposals

To our partners and colleagues:

Earlier today, Governor Kathy Hochul provided her first State of the State address since assuming the Governorship. It is truly inspiring to see our work represented in the Governor’s 2022 agenda, including important plans and actions to be advanced in buildings, transportation, innovation, infrastructure, climate resilience and equity, and renewables, among others.

You can read a copy of the Governor’s speech on her official webpage; in addition, a copy of the full State of the State book language has been uploaded (see Section VI, starting around page 142). You can also check out two press releases focused on some of our top-tier proposals, including on offshore wind and two million climate friendly homes by 2030. In these materials, I would draw your attention to the following relevant proposals for NYSERDA and New York’s overall climate agenda, which we have summarized for brevity.

Offshore Wind: To strengthen New York’s offshore wind leadership, the State will make a momentous and unprecedented commitment to invest $500 million in state funding to support offshore wind port infrastructure and supply chain/manufacturing investments (to be put forward as part of the Governor’s Executive Budget), as a key element of NYSERDA’s anticipated next and third RFP for offshore wind in 2022. This investment will leverage private capital to deliver more than $2 billion in economic activity while creating more than 2,000 good-paying green jobs.

  • On top of this investment and the next RFP, NYSERDA and state agencies will also move forward with a New York State Cable Corridor Study to identify strategic offshore wind cable corridors and access key points of interconnection to the grid, targeting the integration of 6 gigawatts of offshore wind transmission directly into New York City.
  • Finally, building on the success of New York’s award-winning Offshore Wind Master Plan, NYSERDA will initiate a new Master Plan 2.0: Deep Water to unlock the next frontier of offshore wind development.

Energy Storage: To further expand New York’s ambitious energy storage plans, the Department of Public Service (DPS) and NYSERDA will update New York State’s Energy Storage Roadmap to double energy storage deployment plans, targeting at least 6 gigawatts of energy storage by 2030 — the largest target in the nation, backed by needed market reforms and cost-effective procurement mechanisms to capture the full benefits of energy storage. The updated Energy Storage Roadmap will also identify research and development needs to accelerate technology innovation, particularly for long-duration energy storage – something our team has already been working hard on.

Green Hydrogen: To position New York to compete for nearly $10 billion in federal funding for green hydrogen research and development under the federal infrastructure bill, New York will undertake several direct actions to support development of green hydrogen and invest in communities:

  • DPS, DEC, and NYSERDA will develop a green hydrogen regulatory framework to measure emissions reduction and health benefits and will evaluate and develop codes and standards to ensure the safe operation of green hydrogen.
  • NYSERDA will develop a program to support locally owned green hydrogen-powered microgrid solutions, which can help underserved communities replace polluting backup generators.
  • NYSERDA will release $27 million in NYSERDA Hydrogen Innovation funding to support product development, pilots, and demonstrations through competitive solicitations.
  • NYSERDA will propose a green hydrogen demonstration (study and/or engineering assessments) for district heating and cooling.
  • NYSERDA will expand on existing investments and bring together key stakeholders and current H2 users, including chip fabrication, methanol production, and warehouse material handling.
  • NYSERDA will launch a Green Hydrogen Prize Program to support green hydrogen firms seeking to expand in New York State.

Fossil Fuel Plant Phase-Out: To build on the progress initiated by our Tier 4 Transmission awards for New York City and other procurements and program activity, NYSERDA will provide additional scoring credit in our 2022 offshore wind procurement for projects that propose to repurpose existing downstate fossil-based electric generation infrastructure and utilize energy storage to enhance future system reliability. We will also work with DPS in our updated Energy Storage Roadmap work to direct storage deployments to help eliminate the most polluting fossil fuel facilities. NYSERDA, DPS, and DEC will also develop a blueprint to guide the retirement and redevelopment of New York’s oldest and most-polluting fossil fuel facilities and their sites by 2030.

Clean Buildings: An impactful set of building decarbonization proposals includes the establishment of a new top-line goal to achieve two million climate friendly homes by 2030, targeting a minimum of one million electrified homes and up to one million electrification-ready homes in the next eight years – and with a notable sub-target to ensure that more than 800,000 of these homes will be Low-to-Moderate Income (LMI). This target will be anchored by a robust legislative and policy agenda, including:

  • Raising the current rate of electrification of approximately 20,000 homes per year more than tenfold by the end of the decade.
  • Requiring by code zero on-site greenhouse gas emissions for all new construction buildings no later than 2027. The building code development process will separately consider achievable dates for the new construction code for low-rise residential and for the new construction code for commercial and large multifamily. We expect the achievable date for low-rise residential will be prior to 2027, taking into consideration recommendations from the Climate Action Council work. The codes proposal will also incorporate achievement of New York’s GHG reduction objectives, update cost-effectiveness criteria to account for the full lifetime of installed equipment, and add NYSERDA and DEC to the state Code Council.
  • Establishing a dedicated green electrification fund and electrify low-income homes through HCR’s new $25 billion, five-year housing capital plan, which will advance the state’s goals of creating green affordable housing.
  • Introducing legislation to level the playing field for clean energy alternatives and end the obligation that currently exists in state law to serve customers with natural gas, tailored to maintain affordability for New York’s most vulnerable customers.
  • Ensuring gas utilities minimize investments in costly new gas infrastructure, promote alternatives to minimize gas demand, and engage DAC fully and fairly in the gas transition.
  • Upgrading New York’s appliance efficiency standards, reducing energy use while saving New Yorkers billions of dollars in utility costs.
  • Mandating energy benchmarking for large buildings, making it easier to track energy-efficiency improvements over time.
  • Providing the training programs necessary to ensure that New York has a skilled workforce to deliver these services.
  • Convening the finance, mortgage and banking industries to help align private capital with this important housing sustainability goal.

NYSERDA will be working with HCR, DPS, and DOS to deliver an executable plan for the achievement of the two million climate friendly buildings goal in 2022, with a funding proposal and strategies to leverage private capital.

Clean Green Schools: We are excited to announce that we will be substantially expanding the Clean Green Schools proposal that was launched over Climate Week in September, via a proposal to inject new Environmental Bond Act funding (once/if passed by voters in 2022) to expand the program’s reach to over 1,000 public schools located in disadvantaged communities statewide. The proposed program expansion will drive significant infrastructure upgrades, such as geothermal heating and cooling, solar, green roofs, indoor air quality/ventilation, electric school bus charging, and more, creating thousands of high-quality green jobs.

Empire Building Challenge: On the private buildings side, we are excited to unveil the first four showcase retrofit projects that have emerged from the Empire Building Challenge program, which has been working now for almost two years to demonstrate how all buildings, even those over 100 stories tall and nearly 100 years old, can become green buildings. These four showcase projects will be the Empire State Building, the Hudson Square Portfolio, the Heritage Complex, and Whitney Young Manor. Critically, the Heritage and Whitney Young facilities provide nearly 600 units of affordable housing and are located in disadvantaged communities, illustrating how building decarbonization can and should extend to all New Yorkers. Stay tuned for a forthcoming press release with more details on this front soon.

Electric Vehicles: To expand on her bold actions to date to hasten the adoption of zero-emission and electric vehicles, Governor Hochul affirmed the state’s commitment to invest more than $1 billion to support EV adoption and infrastructure, through a combination of make-ready funding, fast-charging investments, and federal infrastructure dollars for charging stations. To induce even greater private investment, Governor Hochul is also directing NYSERDA and DPS to:

  • Simplify and harmonize the state’s EV charging incentive programs, encourage business models that offer turnkey installations, streamline the interconnection and permitting process, and offer additional guidance and assistance to potential EV charging station owners.
  • Expand the EV make-ready program for trucks and buses so utilities can help fleets power these vehicles of the future and provide fleets with expanded technical assistance on cost-effective approaches to electrification and charging.
  • Engage transit agencies in developing tools and resources to support 100 percent zero-emissions bus transit. Notably for us, NYSERDA will conduct a request for information in partnership with New York State transit authorities to explore options for innovative as-a-service models that leverage private capital to support New York’s zero-emission bus market.

Clean Transportation Prize Phase One Awards: As a result of the first phase of our $85 million Clean Transportation Prizes, NYSERDA will provide planning grants to 17 awardees to refine their proposals and engage further with the communities in which awardees are proposing to work, in preparation for a pitch event and grand prize awardee selection in 2022. Awardees will receive up to $200,000 in support for their team and their community engagement partners. Stay tuned for a forthcoming full press release with more details on this front very soon.

State Fleet Electrification: Governor Hochul will electrify the state’s light-duty vehicle fleet by 2035 (including via 100% new light-duty ZEV purchases by 2027), matching President Biden’s commitment to electrify the federal light-duty fleet that same year.

100% ZEV School Buses: New legislation will require that, by 2027, all new school bus purchases will be zero-emissions, and by 2035, all school buses on the road will be zero-emissions – of which there are roughly 50,000 today. Critically, this legislation will ensure that the State provides school aid toward installing electric bus infrastructure, including charging stations, and purchasing or leasing electric buses. Additionally, this legislation will enable school districts to contract for buses for longer than the current five-year limitation, which will expand the ability of school districts to meet this goal. NYSERDA, NYPA, and the State Education Department (SED) will work with schools to apply and deliver winning proposals for federal electric bus funding.

Hunts Point Decarbonization: The Hunts Point Food Market in the Bronx is the largest food distribution center in the U.S., but it is also heavily polluted, with more than 15,000 diesel trucks entering the facility every day. NYSERDA and NYPA will lead an interagency team to develop solutions to transform Hunts Point Food Market into a Clean Distribution Hub that is quieter, cleaner, and healthier for the entire community.

Extreme Heat Action Plan: DEC and NYSERDA will lead the development of an Extreme Heat Action Plan to address heat in disadvantaged communities, areas of employment, and recreational zones across the state. This initiative will survey, analyze, collate, and scale existing high heat-related initiatives designed to mitigate neighborhood climate impacts associated with extreme heat, including shade structures, cool roofs, cool pavements, parks, and spray pads. Critically, the Action Plan will help coordinate interagency investments to ensure that priority assistance goes to disadvantaged communities on the front lines of heat exposure.

 

Other Select Proposals:

  • Increase Funding for the Clean Water, Clean Air and Green Jobs Environmental Bond Act to $4 Billion – confirming the Governor’s previously announced commitment for an additional $1B.
  • Expand Community Air Monitoring Statewide to Improve Air Quality – keeping the momentum going on the Climate Week release we had with DEC, in fulfillment of a key CLCPA requirement
  • Sustainable Finance – achieving net-zero in state investment portfolios by 2040, prioritizing green bonds, and encouraging contractor climate risk disclosure.
  • Strengthen Green Procurement Standards for State Agencies – issuing a new Executive Order on green procurement in state government to align with strong climate commitments.
  • Create a World-Class Battery Research and Manufacturing Center at Binghamton University – establishing BATTERY-NY, a Technology Development and Manufacturing Center hosted by Binghamton University and led by Professor Stan Whittingham and NY-BEST.
  • Weatherize and Electrify New York’s Housing Stock – the corollary HCR proposal that connects with the Two Million Climate Friendly Homes proposal listed above, via the new, $25 billion, five-year Housing Plan.

As you can see from these proposals, 2022 is off to a strong start, and look forward to an impactful year of climate action ahead.

Doreen M. Harris

NYSERDA President and CEO