New York Governor Paterson Announces Clean Energy Job Creation Initiatives

$276.5 Million Investment to Spur Clean Energy Job Creation in New York; Four Clean-Energy Business "Incubators" to be Established in Brooklyn, Buffalo, Rochester and Syracuse

April 21, 2009 -- New York Governor David A. Paterson today announced a series of initiatives to spur job growth throughout New York State. In advance of Earth Day, the Governor’s initiatives are designed to accelerate economic growth and create clean-energy jobs, while enhancing New York’s renewable and energy efficiency programs. Over a quarter of a billion dollars will be invested to reverse the pattern of ever-increasing energy consumption in New York State. Separately, four small-business “incubators” in New York will begin to provide specialized support for the development of early stage clean-energy technology companies and expand the State’s workforce.

The New York State Department of Public Service announced that New York State Energy Research and Development Authority (NYSERDA) would begin implementing $276.5 million in new and expanded electric energy efficiency programs through 2011. This funding will build on NYSERDA’s existing energy efficiency funding commitment of $175 million a year through 2011, and will help reduce New York’s energy consumption. Additionally, NYSERDA announced that The University at Buffalo, Rochester Institute of Technology, The Tech Garden in Syracuse and Polytechnic Institute of New York University in Brooklyn have each been selected to receive up to $1.5 million to establish and operate clean-energy incubators.

“Energy is the new currency of the 21st Century, and New York State is positioned to be the national leader in developing new technology and creating a clean-energy economy that will put New Yorkers back to work,” said Governor Paterson. “By 2015, we will achieve two goals in New York: we will reduce the State’s electricity use by 15 percent and expand our share of renewable electricity generation to 30 percent – to achieve our ‘45 by 15’ clean energy goal. These programs will lead New York on a path to energy independence, and can serve as a national model for the clean-energy industry.”

NYSERDA’s incubator awards and other ongoing efforts will build the capacity to foster innovative clean-energy companies, grow the clean-energy industry in New York, and expand the State’s workforce. NYSERDA competitively selected proposals with the goal of creating self-sustaining support networks and infrastructure for early stage renewable energy or clean-energy companies. The four organizations will work with entrepreneurs to commercialize the products that will be required to meet the world’s growing demand for energy. Clean energy business incubators offer on-site business services customized early-stage business assistance, networking opportunities and access to technical resources. Incubators help early stage businesses mature rapidly into viable businesses.

In 2008, the New York State Public Service Commission (PSC) commenced its historic Energy Efficiency Portfolio Standard (EEPS), a ground-breaking energy efficiency initiative. In addition to the $276.5 million that NYSERDA will be administering as part of this initiative, earlier this year the PSC approved utility-administered energy efficiency programs totaling more than $181.7 million through 2011.

The NYSERDA energy-efficiency initiatives now being implemented with funding through 2011 will include programs for residential, low-income, commercial and industrial customers as follows:

o High Performance New Buildings Program: Funding of about $21.9 million annually will provide, on a cost-sharing basis, an analysis of energy efficiency improvements in commercial or industrial new construction or substantially renovated buildings. Total new funding available under this program is about $71.3 million.
o Flexible Technical (FlexTech) Assistance Program: Funding of about $5.2 million annually will provide customers with objective and customized information to facilitate informed energy efficiency, procurement, productivity and financing decisions. Eligible participants for the FlexTech Program include commercial, industrial, institutional, municipal, not-for-profits and K-12 schools. Total new program funding available is approximately $16.9 million.
o Industrial Process and Efficiency Program: Funding of about $32.5 million annually includes expanded outreach and incentives for energy efficient process improvements at industrial and data center facilities. Total new program funding available is about $105.5 million.
o Statewide Residential Point-of-Sale Lighting (CFL Expansion) Program: Funding of approximately $6 million annually is intended to increase the supply and demand for energy efficient compact fluorescent light bulbs (CFLs) through partnerships with retailers and manufacturers. This program partners with over 440 lighting retailers and 14 lighting manufacturers of energy efficient ENERGY STAR CFLs. Total new program funding available is about $19.5 million.
o EmPower New York Program: Funding of about $8.2 million annually will expand the availability of the program to additional eligible customers to install cost-effective electric reduction measures, particularly lighting and refrigeration replacements, and certain health and safety measures. The program is available to home-owners and renters living in 1-to-4 family homes or small multifamily buildings with 100 units or less, and who either participate in a utility payment assistance program, or have a household income below 60 percent of the State median income. Total new program funding available is approximately $26.8 million. In some cases, other funding may be available for cost-effective improvements that lower heating costs.

In addition to the program-specific funding, the new initiative includes approximately $37 million for expanded statewide marketing outreach and education, and enhanced measurement and verification of NYSERDA’s energy efficiency program results.

The EEPS program, when fully funded, is expected to provide more than $4 billion in benefits to customers through 2015. In addition, it is anticipated that thousands of jobs will be created to support the new energy efficiency programs – retrofitting outdated, inefficient residential, commercial and industrial properties, installing new energy efficient equipment, and informing the public about the new opportunities for savings on energy bills – by 2015. The program is one piece of New York’s demonstrated commitment to energy efficiency programs. Additional actions have been taken by the New York State Division of Housing and Community Renewal (DHCR), the New York Power Authority (NYPA), and the Long Island Power Authority (LIPA) to ramp up the State’s efficiency programs. DHCR is implementing a weatherization program funded at nearly $500 million over the next two years, NYPA has an energy efficiency financing program for municipalities and schools funded at $185 million per year, and LIPA has approved $924 million for efficiency programs over the next ten years. In total, the State’s efficiency programs amount to over $1.5 billion in funding over the next two years.

Senator Kevin Parker, Chair of the Senate Energy Telecommunications Committee, said: “Reducing New York’s carbon footprint while simultaneously creating jobs is one of the State’s most important tasks right now. This historic investment will help New York address our energy demands as we grow our economy, reduce energy bills for consumers, and achieve energy independence.”

Assemblyman Kevin Cahill, Chair of the Assembly Energy Committee, said: “Energy efficiency is the most effective way to immediately cut back on energy costs and carbon emissions while at the same time fueling our economy. The security of the Empire State depends on our commitment to energy independence and the development of green jobs. Today’s announcement represents a small step towards achieving those goals.”

PSC Chairman Garry Brown said: “Energy efficiency is the most cost-effective and immediate way to reduce the burden of rising energy and environmental costs for New York’s consumers. The objective of our unprecedented and historic energy efficiency initiative is to help realize New York’s untapped potential for energy efficiency. With the new funds being made available to NYSERDA, and the recently approved utility-managed energy efficiency programs being put into place, we can confront head-on our fast-growing energy demands. These types of energy efficiency initiatives can substantially ease the pressure to build new power plants and new transmission power lines, thereby reducing costs shouldered by ratepayers.”

NYSERDA President and CEO Francis J. Murray, Jr. said: “As a key component of Governor Paterson’s comprehensive energy policy, the Energy Efficiency Portfolio Standard will help lead New York State toward a more efficient, sustainable and secure energy future. NYSERDA looks forward to working with our partners across the State to implement these cost effective programs, which will protect our environment, reduce our reliance on fossil fuels and create good paying jobs. This historic investment in the State’s energy efficiency programs will lower energy bills for consumers, reduce the carbon footprint of program participants and strengthen the reliability of our electric grid.”

As part of New York’s commemoration of the 40th Anniversary of Earth Day, Governor Paterson continues to demonstrate a clear commitment to clean air, clean water, healthy communities, fighting climate change, and promoting renewable energy policies. He is a vocal advocate for clean water investments and “greening” State government. The Governor’s specific achievements include New York’s historic participation and leadership role in addressing global warming with the Regional Greenhouse Gas Initiative, and accomplishing what previous Governors could not by getting the Legislature to finally pass the Bigger, Better, Bottle Bill. By adopting an ambitious but achievable 45 by 15 clean energy goal (45 percent of New York's electricity from renewables and efficiency by 2015), Governor Paterson has set New York on a path to become the global leader in the clean energy economy, creating green jobs, boosting the economy and protecting the environment.

Source: New York Governor