The New York Power Authority (NYPA) has been granted new authority under the 2023-24 Enacted State Budget to lead the state's effort to decarbonize its electric grid and develop, own, and operate renewable energy generating projects, either alone or in collaboration with other entities. The move is intended to help the state meet its clean energy targets, including producing 70% of its electricity from renewable sources by 2030 and creating a zero-emission statewide electrical system by 2040.
“We are well-positioned to develop new renewable energy generation resources… to accelerate the state's decarbonization journey while helping to prepare New York's workforce for the clean energy transition with good-paying jobs,” said NYPA Acting President and CEO Justin E. Driscoll. “The entire Power Authority team and I are inspired and ready to execute on this expanded authority.”
The Power Authority is already formalizing internal task forces to advance the key pillars of the new legislation, which includes renewable development, a Renewable Energy Access and Community Help (REACH) program to benefit disadvantaged communities, labor training, and peaker plant retirement. NYPA will also publish an action plan within the next two years to deliver on its commitment to phase out electricity production from its fossil fuel peaker power plants.
The law empowers NYPA, in partnership with the Public Service Commission, to support disadvantaged communities with a new REACH program. The program will enable low-income and moderate-income electricity consumers to receive bill credits through the production of renewable energy products developed by or for NYPA in New York. The enactment also authorizes NYPA to contribute up to $25 million annually to the Department of Labor for workforce development in the renewable energy sector.
NYPA expects to access new and existing federal tax credits provided by the Inflation Reduction Act of 2022 to lower the costs of certain renewable energy projects that it would undertake under the enactment.
“The state's climate agenda calls for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as the state recovers from the COVID-19 pandemic,” said a release. “New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and to reach economy wide carbon neutrality. New York will reduce greenhouse gas emissions by 85% from 1990 levels by 2050, while ensuring that at least 35% with a goal of 40% of the benefits of clean energy investments are directed to disadvantaged communities.”
With the new authority granted by the 2023-24 Enacted State Budget, NYPA is poised to lead the charge in the state's ambitious push toward a cleaner, more sustainable future. As Driscoll put it, “We are excited to help the state advance its bold Climate Leadership and Community Protection Act goals, enabling public entities and NYPA's customers to achieve their sustainability goals, and providing support to disadvantaged communities across New York.”
