NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
NYSERDA Announces $10 Million Available for Carbon Neutral Community Economic Development Projects
Funding Will Advance Building Decarbonization Work and Stimulate Economic Development

Doreen M. Harris, President and CEO, NYSERDA said, "The Carbon Neutral Community Economic Development Program provides critical statewide support for community revitalization through building projects that incorporate energy efficiency, electrification and renewable energy efforts. By addressing emissions from key buildings within communities, we are advancing the transformation needed to ensure vibrant healthy living, recreation and workspaces for all New Yorkers."

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. It provides incentives with focused support for projects located in Disadvantaged Communities and Downtown Revitalization Initiative districts, to reduce emissions and improve quality of life for residents and visitors. In addition, NYSERDA prioritizes investments in building modernization 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 28, 2023, at 4:00 p.m. Interested proposers can find more information or apply to this program.

The fifth round of the Carbon Neutral Community Economic Development program includes two categories in which funding is available:

Category A:

• Eligible New York State commercial, industrial, institutional, municipal and mixed-use Site Owners may apply for incentives for the construction of high-performance buildings, or renovation of existing buildings to high performance standards, that demonstrate how the approach is replicable to more buildings in a reliable, cost effective way. The decarbonization of an existing central plant is also eligible. Project awards will be up to 75% of eligible costs or $2 million, whichever is less.

Category B:

• 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% of the eligible costs, with a maximum project award amount of $2 million.

A total of 50 projects have been awarded to date through the Carbon Neutral Community Economic Development program, with over $56 million in incentives since it was launched in 2018. Six of the 10 projects awarded in 2022, and 20 of the 50 projects receiving funding from the first four rounds, are examples of adaptive reuse of an existing building to carbon neutral performance. These projects maintain the heritage and local character of New York communities, demonstrate the feasibility of applying clean energy technologies to existing buildings and have lower embodied carbon than new construction. They often serve as the anchor project for surrounding neighborhood redevelopment.

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. Decarbonizing buildings will help improve building resiliency, occupant health and productivity.

The 2023 funding round for the Carbon Neutral Community Economic Development program is part of the State's 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. It is designed to give project applicants expedited and streamlined access to a combined pool of grant funds and tax credits from dozens of existing programs. Regional Economic Development Council (REDC) 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 and funding priorities that meet local economic needs. To date, through the REDCs, more than $7.5 billion has been awarded to more than 9,200 job creation and community development projects consistent with each region's strategic plan.

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 Plan

New York State's nation-leading 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 nation's most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York's clean energy sector in 2021 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York's climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State's largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution and combat climate change.

About NYSERDA

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

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.