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NY economic development awards to support 13,000 jobs, $375 million in investments

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NY economic development awards to support 13,000 jobs, $375 million in investments

New York Governor Kathy Hochul announced economic development awards under the ReCharge NY program and a funding award through the Western New York Power Proceeds Fund.

The New York Power Authority Board of Trustees approved awards under the ReCharge NY program to 41 firms that will spur more than $371 million in capital investments and support nearly 13,000 jobs, 170 of those newly created. And a $595,000 funding award was approved to Whiting Door Manufacturing Corporation in Erie County through the Western New York Power Proceeds Fund.

The approved allocations of nearly 9 MW of low-cost power under ReCharge NY will be directed to companies in the Capital District, North Country, Finger Lakes, Southern Tier, Mohawk Valley, Hudson Valley, New York City, Western New York and on Long Island. Among the awards was a 3.3 MW power allocation to the Joan & Sanford I. Weill Medical College of Cornell University in Manhattan. The school will invest more than $338 million to develop unused space and upgrade existing infrastructure. The project will support the retention of 7,500 jobs.

The NYPA board also approved a 580 kW ReCharge NY allocation to Arvos Ljungstrom in Allegany County that will spur $12.5 million in private capital investments and support the retention of nearly 300 jobs. Arvos Ljungstrom manufactures air preheater devices — critical components of thermal power plants — and specializes in providing solutions for industrial facilities. The firm will construct additional buildings to manufacture coating systems, upgrade its factory and transform its manufacturing facility to produce secondary steel used in offshore wind. Empire State Development (ESD) is also providing up to $2.5 million in Excelsior Jobs Program tax credits to Arvos Ljungstrom, in exchange for a commitment to create 47 new jobs.

“Economic development awards from the New York Power Authority continue to serve as a backbone for New York’s clean energy economy and I’m pleased to see these awards approved today,” said NYPA President and Chief Executive Officer Justin E. Driscoll.

The NYPA Board of Trustees also approved a $595,000 funding award from the Western New York Power Proceeds Fund to Whiting, which produces roll-up and swing doors for the commercial freight and transportation industries and will invest nearly $4 million to expand its manufacturing capabilities. Whiting’s expansion will create 25 jobs. ESD is also incentivizing Whiting Door’s continued growth in Erie County by providing up to $500,000 in Excelsior Jobs Program tax credits in exchange for job creation commitments. 

“By leveraging low-cost hydropower, the New York Power Authority is catalyzing billions of dollars of private capital investments and supporting jobs throughout New York State,” Governor Hochul said. “The awards approved by the NYPA Trustees … underscore the Power Authority’s commitment to strengthening New York’s economy today and into the future.”

ReCharge NY has strengthened New York State’s economy by encouraging companies to retain and create jobs, while sparking capital investment. ReCharge NY offers power contracts with terms up to seven years. Half of the power — 455 MW — is from NYPA’s Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants. The remaining 455 MW is lower-cost power bought by NYPA on the wholesale market.

The NYPA funding award is made possible through net earnings resulting from the sale of unused hydropower generated at the Power Authority’s Niagara Power Project and stems from power proceeds legislation signed into law in 2012.

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%, with a goal of 40%, of the benefits of clean energy investments are directed to disadvantaged communities. New York is on a path to achieving a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and economywide carbon neutrality by mid-century.

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. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity.