Governor Kathy Hochul announced on April 5 that $3.5 million in technical assistance funding is now available to support the development of electric grid modernization project proposals through the state’s Grid Modernization Program.
This funding will support interested municipal electric utilities and rural electric cooperatives in developing proposals that advance the reliability of grid infrastructure and access to affordable clean energy. The project aims to meet the Climate Leadership and Community Protection Act’s goals to transition to 100 percent zero-emission electricity by 2040.
“With the support of the Biden Administration, we are advancing a more resilient, modernized and connected electric grid,” Hochul said. “This funding will help the state identify the best approaches for grid modernization projects that ensure New Yorkers always have access to affordable and reliable power.”
The announcement represents the pre-development step to help municipal electric utilities (MUNIs) and rural cooperatives (COOPs) plan for an upcoming $24 million funding opportunity made possible through a U.S. Department of Energy (DOE) award presented to New York State last fall. The $24 million, expected to be made available this summer, will be administered by the New York State Energy Research and Development Authority (NYSERDA) over a two-year period through a competitive solicitation process to select grid modernization projects.
New York State MUNIs and rural COOPs may now apply here on a first-come, first-served basis until 3:00 p.m. on December 1, 2027 for a one-time maximum technical assistance award of up to $200,000 per applicant. This assistance can be used to support the technical analyses needed to evaluate potential projects, grant writing assistance for implementation funding, and development of a metrics reporting system to evaluate project success.
NYSERDA will host an informational webinar here on April 12 from 2:00 p.m. to 3:00 p.m. for those interested in learning more about the technical assistance funding opportunity.
Doreen M. Harris, President and CEO NYSERDA said, “By providing this up-front support, we are ensuring future proposals submitted for consideration represent projects that will advance a just transition to a zero-emission electric grid while increasing access to clean energy for New Yorkers.”
MUNIs and rural COOPs that do not have technical assistance needs may propose smaller implementation projects that fall within the allowable maximum award amount, including projects that align with focus areas detailed in the solicitation, which will strengthen the capacity of New York State’s grid systems and communities to prepare for current and future climate risks.
Applicants will be required to directly procure any contractors needed for technical services, which may include engineering, economics, and grant application services. NYSERDA will review all contractors working with MUNIs and rural COOPs as part of this activity to ensure they meet the Authority’s and federal contractor standards.
New York was one of nine states and five tribal nations that were awarded a combined total of $125 million last September as the seventh cohort of Grid Resilience State and Tribal Formula Grants. The $3.5 million made available today is part of New York’s 15% matching funds required by DOE and sourced through the Regional Greenhouse Gas Initiative. To learn more, visit NYSERDA’s website and the Grid Deployment Office’s website.
Funded through the Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office, the Grid Resilience State and Tribal Formula Grants distribute funding to states, territories, and federally recognized Indian Tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations, over five years based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. Priority is given to projects that generate the greatest community benefit providing clean, affordable, and reliable energy.
“Strengthening our local distribution infrastructure is crucial to our public power mission of providing safe, affordable, and reliable electricity for our customers, members, and broader communities,” New York Association of Public Power President David Leathers said. “The NYAPP utility and cooperative members appreciate this funding opportunity provided by NYSERDA through the Bipartisan Infrastructure Law that will support continued system investments to enhance the resiliency and reliability of our public power electric systems throughout New York State.”