Governor Kathy Hochul today announced $10 million is now available for large-scale thermal projects that reduce greenhouse gas emissions from heating, cooling, and hot water in buildings. The new Large-Scale Thermal Program will support projects for large buildings or networks of buildings that show replicable designs and business models for significantly reducing energy use, maximizing energy recovery, and improving climate and grid resilience.

“Investing in the design and deployment of clean heating and cooling systems is another part of New York’s strategy to decarbonize buildings and lower emissions across the State,” Governor Hochul said. “With this new program, we are creating energy efficient and comfortable buildings for working, living, and learning across the State.”

The new Large-Scale Thermal Program, administered by the New York State Energy Research and Development Authority (NYSERDA), will competitively award funding to colleges and universities, multi-family complexes, medical campuses and communities for projects that use heat pumps and low carbon thermal resources such as geothermal, wastewater, waste heat, surface water, and thermal energy storage to effectively integrate different clean heating and cooling systems and equipment into their buildings. Project sites may consist of a single large building or multiple co-located buildings (e.g., multiple buildings served by a shared thermal system and/or resource), either existing or new construction.

NYSERDA President and CEO Doreen M. Harris said, “Heating of occupied spaces and production of domestic hot water are challenging to decarbonize in buildings, underscoring the importance of this new program which will provide support for projects that show replicable models for reducing energy use and increasing climate and grid resilience. As we continue to embrace and implement new, innovative technologies such as large-scale thermal, New York State will continue progress in reducing greenhouse gas emissions while improving residents’ quality of life with clean, efficient, state-of-the-art heating and cooling systems.”

As part of this competitive solicitation, NYSERDA will prioritize projects that are located in disadvantaged communities (DACs), as defined by the Climate Justice Working Group, or that serve low-income residents, consistent with the Climate Act requirement for at least 35 percent, with a goal of 40 percent, of benefits from clean energy investments are directed to DACs. Designs for projects serving residential buildings will be required to prepare and deliver a Customer Engagement and Protection Plan, which will demonstrate how customers will be educated about and recruited to connect to the system as well as their rights and responsibilities for connection, including protection from significant energy cost increases. A prerequisite to apply for design cost share is a completed feasibility study whether through the Community Heat Pump Systems program, FlexTech program, or another funding source.

The deadline for proposals is 3:00 p.m. on September 26, 2024. NYSERDA will hold an informational webinar on July 11, 2024, at 3:00 p.m. for stakeholders to learn what projects are eligible and how to apply.

Today’s announcement builds on NYSERDA’s progress made under the Community Heat Pump Systems Program, a pilot program launched in February of 2021 to support feasibility studies, detailed design, or construction of a thermal energy network. Through the program, NYSERDA provided funding to over 50 project sites at different stages of project development. This program supports the State’s Climate Leadership and Community Protection Act goals to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050, and ensure at least 35 percent, with a goal of 40 percent, of the benefits from investments be directed to disadvantaged communities.

Buildings are one of the most significant sources of greenhouse gas emissions in New York State and through NYSERDA and utility programs, over $6.8 billion is being invested to decarbonize buildings. By improving energy efficiency in buildings and advancing statewide installations of onsite storage, renewables, and electric vehicle charging equipment, the State will reduce its carbon pollution and achieve the State's ambitious target of reducing on-site energy consumption by 185 TBtu by 2025, the equivalent of powering 1.8 million homes.

This program is funded through NYSERDA’s Clean Energy Fund (CEF) and the Regional Greenhouse Gas Initiative (RGGI).

New York State’s Nation-Leading Climate Plan

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 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030 and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000-percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.