Government and Policy News

Legislation grants NYPA authority to develop new renewable energy generation

Legislation grants NYPA authority to develop new renewable energy generation

The 2023-24 Enacted State Budget provides the New York Power Authority (NYPA) with new authority to develop, own and operate renewable energy generating projects, alone or in collaboration with other entities, to assist the state in meeting its clean energy targets.

In addition, NYPA will lead the state’s effort to decarbonize its electric grid by ceasing fossil fuel-based electricity production at its peaker power plants by 2030. NYPA will also develop action plans to decarbonize 15 of the highest-emitting state facilities.

NYPA is the largest state public power organization in the U.S., operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80% of the electricity NYPA produces is clean, renewable hydropower.

The state’s clean energy targets include producing 70% of the state’s electricity from renewable sources by 2030 and creating a zero-emission statewide electrical system by 2040.

“The entire Power Authority team and I are inspired and ready to execute on this expanded authority to develop renewable energy projects across a large spectrum, helping 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,” said NYPA Acting President and Chief Executive Officer Justin E. Driscoll. “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.”

The Power Authority is formalizing internal taskforces charged with advancing the key pillars of the new legislation: renewable development, a Renewable Energy Access and Community Help (REACH) program to benefit disadvantaged communities, labor training and peaker plant retirement. One action already under way is a review of the Power Authority’s own assets for renewable development.

NYPA will now begin work toward the publication of its first two-year strategic plan, outlining its strategies and proposed renewable projects, after collaboration with stakeholders and a public comment process. The plan will be updated at least annually after public comment.

In addition, the Power Authority will develop and 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. NYPA will also consider the appropriateness of using the plants and sites for renewable generation, energy storage or electric grid support needs.

The law also empowers NYPA, in partnership with the Public Service Commission, to support disadvantaged communities with a new REACH program. REACH 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. In addition, the enactment 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 be able 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.

NYPA also will leverage its energy service and engineering expertise to assist the 15 highest-emitting state facilities by creating decarbonization action plans. The action plans will accelerate the state’s progress toward a cleaner building sector, support the creation of high-quality jobs at future decarbonization projects and move the state closer to reaching its climate goals, a release said.

New York 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. 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.