New York Announces More Green Energy Projects

During Climate Week, New York Governor Kathy Hochul announced two major green energy infrastructure projects to power New York City with wind, solar, and hydropower projects from upstate New York and Canada. If approved, these infrastructure projects will create approximately 10,000 family-sustaining jobs statewide and bring US$8.2 billion in economic development investments, including developer-committed investment to support disadvantaged communities, once completed, to help accelerate the state’s economic recovery from COVID-19. This announcement will help reduce the city’s reliance on fossil fuels, lower carbon emissions, and significantly improve air quality and public health in disadvantaged communities while accelerating progress to exceed New York’s goal for 70% of the state’s electricity to come from renewable sources by 2030 on the path to a zero-emission grid as outlined in the Climate Leadership and Community Protection Act (Climate Act).

“New York’s communities are repeatedly facing serious consequences as a result of the devastation caused by the global climate crisis, and the stakes have never been higher as we deal with the economic and environmental destruction these extreme weather events leave behind,” said Governor Hochul. “These transformative projects are a win-win — delivering thousands of new good-paying jobs throughout the state and attracting billions of dollars in private investment. They also help us turn the page on New York City’s long-standing dependence on fossil fuels and will ensure millions of New Yorkers, especially those living in our most vulnerable communities, can have the promise of cleaner air and a healthier future.”

The announcement is bolstered by New York City’s confirmation to join in these landmark awards. This makes the scale of these awards possible while creating the opportunity for billions of dollars in savings for customers in New York City and statewide.

“This is a transformative moment for New York City’s fight against climate change,” said New York City Mayor Bill de Blasio. “Two new transmission lines connecting New York City to electricity from water, wind, and solar will create thousands of good union jobs, improve the resilience and reliability of our power supply, and dramatically reduce our reliance on oil and gas electricity that dirties the air in our neighborhoods and endangers our planet. Thank you to Governor Hochul and NYSERDA for their partnership, and we look forward to working closely together to join in this landmark award and fulfill our commitment to power New York City government operations with 100% clean and renewable electricity by 2025.”

Combined, the awarded Clean Path NY (CPNY) project, developed by Forward Power (a joint venture of Invenergy and EnergyRe) and the New York Power Authority; and the Champlain Hudson Power Express (CHPE) project, developed by Transmission Developers, Inc. (backed by Blackstone); and Hydro-Québec will:

• Produce approximately 18 million megawatt-hours of upstate and Canadian renewable energy per year, enough to power more than 2.5 million homes
• Reduce greenhouse gas emissions by 77 million metric tons over the next 15 years, the equivalent of taking one million cars off the road
• Provide US$2.9 billion in public health benefits over 15 years that will result from reduced exposure to harmful pollutants — including fewer episodes of illness and premature death, fewer days of school or work missed, less disruption of business, and lower health care costs.

Demonstrating the State’s commitment to ensuring these projects create quality, family-sustaining jobs for New Yorkers, the awarded contracts will include prevailing wage provisions for all laborers, workers, and mechanics performing construction activities with respect to the construction of the projects. In addition, the project developers will be required to negotiate Project Labor Agreements among their construction contractors and a building and construction trade labor organization representing craft workers for the construction of the new transmission lines as well as for the construction of the new renewable energy generation resources that the developers and its affiliates build for this project in New York State.

CPNY and CHPE will invest approximately US$460 million in community benefit funds to create pathways to green energy jobs, support public health, advance capital improvement projects, realize habitat restoration, and improve the environmental footprint of buildings in disadvantaged communities.