ALBANY, N.Y. — The New York State Energy Research and Development Authority (NYSERDA) on May 18 launched the third round of the Commercial and Industrial (C&I) Carbon Challenge. 

NYSERDA made $15 million available as part of the 11th round of Gov. Andrew Cuomo’s Regional Economic Development Council initiative that was announced May 11. 

The C&I Carbon Challenge seeks to reduce carbon emissions at commercial and industrial businesses and institutions, combat climate change, and drive economic growth across the state, NYSERDA contends. 

The announcement supports Cuomo’s goal to reduce greenhouse-gas emissions 40 percent by 2030.

The C&I Carbon Challenge is a competitive program that provides funding to large commercial and industrial energy users to implement various cost-effective clean-energy projects that reduce carbon emissions. The third round of funding is being made available to eligible businesses and institutions including, but not limited to, manufacturers, colleges, universities, health-care facilities, and office- building owners in New York state. 

Project proposals may employ a combination of energy or manufacturing-process-efficiency strategies, carbon-capture technology, renewable generation, or energy storage.

Funding is available through the state’s 10-year, $5.3 billion clean-energy fund.

The challenge will provide awards ranging from $500,000 to $5 million to partially offset clean-energy project costs for the very largest commercial and industrial energy users in the state, with an aggregate 12-month average demand of 3-megawatts or greater. The deadline to apply for the third round through the state’s consolidated funding application is July 30 at 4 p.m.

“The COVID-19 pandemic has impacted all of us in many ways. New York is ready to help companies continue to get back on track with certain programs like the Carbon Challenge,” Randy Wolken, president & CEO of MACNY, the Manufacturers Association, said in the release. “NYSERDA’s Carbon Challenge is designed to support large energy consumers by providing them with the flexibility for strategic decarbonization projects that could help lower energy costs and create green energy jobs.”

How it works

The state is providing funding in two categories. Category A offers $10 million for proposals that incorporate solutions of interest, including beneficial electrification and reducing emissions related to manufacturing processes, to lower the applicant’s carbon footprint. Category B offers $5 million for proposals that involve energy efficiency; on-site clean-energy generation; or any other greenhouse-gas reducing solution not identified in Category A. 

NYSERDA will select competition winners based on their plans for project implementation,  institutional commitment to sustainability, overall level of greenhouse-gas emissions reduced, and their potential to beneficially impact disadvantaged communities. 

The challenge is expected to reduce statewide carbon emissions by about 650,000 metric tons, or the equivalent of removing 140,000 cars from the road. NYSERDA expects to announce the third-round awards in early 2022.

Past Carbon Challenge awardees, including second-round winners, have featured colleges and universities, office buildings, and businesses in manufacturing sectors. Collectively, they committed to reducing over 1.5 million metric tons of carbon emissions, the equivalent of taking 325,000 cars off the road, NYSERDA said.

Program purpose

Commercial and industrial buildings account for 33 percent of the energy-related greenhouse-gas emissions in New York state. NYSERDA contends its initiatives and programs can benefit most businesses and organizations across the state, but large energy consumers have unique needs and solutions when it comes to increasing efficiency and lowering emissions. 

The C&I Carbon Challenge gives large energy consumers the flexibility to tap into their in-house expertise to reduce their carbon footprint and control their energy costs, per NYSERDA.

In addition, the program aligns with the recommendations produced by the Energy Intensive and Trade Exposed Industries (EITE) advisory panel and recently submitted to New York’s Climate Action Council, the authority added.