Next Phase of the State’s Supply Chain Activities Released in the Form of $200 Million Supportive Manufacturing and Logistics RFP
Request for Information Also Announced to Inform Fifth Offshore Wind Solicitation and $300 Million Major Component Supply Chain RFP
Steps Support Climate Leadership and Community Protection Act Goal to Develop 9,000 Megawatts of Offshore Wind by 2035
Governor Kathy Hochul today announced definitive steps in support of the growing clean energy industry in New York and the State’s 10-Point Action Plan. As part of the next phase of the State’s $500 million commitment to offshore wind supply chain activities, a $200 million Supportive Manufacturing and Logistics Request for Proposals is now open to support investments in infrastructure and manufacturing to grow the domestic offshore wind supply chain in New York. In addition, a Request for Information (RFI) will be issued to inform the development of New York’s fifth offshore wind project solicitation (NY5) and design of a coordinated $300 million RFP focusing on major component offshore wind supply chain investments. Today’s announcements support continued progress toward achieving New York’s Climate Leadership and Community Protection Act goal to develop 9,000 megawatts of offshore wind by 2035.
“New York is solidifying its leadership role in the offshore wind industry, building the supply chain right here in the State to build the industry and drive down costs,” Governor Hochul said. “This commitment and momentum will help us realize a future where clean energy powers our grid, creates long-term jobs, and boosts our economy.”
The 10-point Action Plan released in October 2023 offered insight and direction for the State’s plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector and outlines a comprehensive set of actions being taken to lay the foundation for a sustainable future for all New Yorkers through the expansion of the State’s growing clean energy economy and renewable energy sector.
$200 Million Supportive Manufacturing and Logistics RFP
Based on industry feedback collected through a Request for Information (RFI) in 2023, NYSERDA today is launching a competitive supply chain development solicitation seeking proposals for Tier 2 to Tier 4 infrastructure and manufacturing facilities.
Proposers to the supply chain RFP will be required to demonstrate how State funding will leverage significant private investments in supply chain projects and are encouraged to demonstrate that the funds awarded by the state are the final funds needed to develop a project. Proposals are due by 3:00 p.m. ET on August 13, 2024. Solicitation details and associated documents are available on NYSERDA’s website.
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “With the issuance of today’s supply chain funding opportunity and requests for input on our next offshore wind solicitations, we continue to demonstrate a steadfast commitment to moving large-scale renewable energy forward on a competitive basis despite macroeconomic headwinds facing the industry. We are undaunted in our efforts to build this industry with a thoughtful, collaborative approach that is responsive to market needs and inclusive of robust stakeholder engagement to ensure a solid foundation for success.”
Request For Information to Inform Next Offshore Wind Solicitation and $300 Million Major Component Supply Chain RFP
In addition to administering this new offshore wind supply chain development solicitation, NYSERDA today also issued a Request for Information (RFI) to invite industry stakeholders to review and comment on the potential structure of the next Offshore Wind Renewable Energy Certificates (ORECs) solicitation (NY5) and a coordinated $300 million Major Component Supply Chain RFP. Responses are due on May 21, 2024.
A webinar will be held on May 7, 2024, at 9:00 a.m. to provide more information on the above RFP and RFI. Those interested in the webinar can sign up here.
NY5 Solicitation
Following the RFI mentioned above, NYSERDA plans to launch the fifth offshore wind solicitation in summer of 2024. Once launched, the NY5 solicitation will run in parallel to a $300 million Major Component Supply Chain solicitation. The Offshore Wind Renewable Energy Certificate solicitation originally planned for release late in 2024 in coordination with the New York City Public Policy Transmission Needs (PPTN) process will be launched in 2025.
$300 Million Major Component Supply Chain Solicitation
NYSERDA anticipates issuing a $300 million Major Component Supply Chain solicitation simultaneously with launching NY5 to allow offshore wind proposers to negotiate the use of localized supply chain components in their bids. The design of the solicitation will be informed by comments received through the RFI issued today and aimed at attracting investments in major offshore wind supply chain components, including major port upgrades to accommodate major offshore wind component manufacturing.
Center for Economic Growth Chief Economic Development Officer Katie Newcombe said, “The Center for Economic Growth and its partners have spent years building a robust offshore wind ecosystem, and we will continue to actively pursue manufacturing, workforce development, and supply chain opportunities. Albany/NY’s Capital Region is home to the best shovel ready port sites in the United States. We stand ready to work with developers, suppliers, and NYSERDA through this and future opportunities to realize our collective vision of advancing offshore wind in New York State and bringing economic benefit to our communities.”
New York State Building Trades President Gary LaBarbera said, “Offshore wind is a game changer for New York as it works to meet its climate goals, and for the tradesmen and tradeswomen who will hold the thousands of good-paying union jobs it creates, bolstering our middle class and stimulating our local economies. We’re thankful that Governor Hochul and NYSERDA are advancing New York’s commitment to building this important, new energy sector while ensuring strong safety standards, family-sustaining wages, and good benefits.”
New York State AFL-CIO president Mario Cilento said,“We applaud the Governor for her commitment to ensuring that New York’s clean energy future is manufactured, constructed, operated, and maintained by union members. While NY3 and associated manufacturing grant funding included the most robust labor standards of any offshore wind project to date, we will continue to work with the Governor to ensure the solicitations announced today include even more robust standards and protections for union workers.”
New York City Central Labor Council, AFL-CIO President Vincent Alvarez said, “With today’s announcement, Governor Hochul and NYSERDA are taking proactive steps to navigate a dynamic and evolving market. We look forward to building a New York-based supply chain with strong labor standards, and collaborating with NYSERDA, New York State, and all of the stakeholders to ensure that as we transition to a clean energy economy, we’re also creating family-sustaining union jobs and a resilient economy for all New Yorkers.”
Long Island Federation of Labor, AFL-CIO, President John Durso said, “Starts and stops are sometimes necessary and provide new opportunities for us to make sure we are delivering the best possible outcome for New Yorkers. Long Island’s working families remain committed to addressing the climate crisis in a way that creates good union jobs in the process. We look forward to working with New York State, the offshore wind industry, and all other stakeholders who are interested in a brighter future with good family sustaining wages.”
Nassau and Suffolk County Building Trades President Matt Aracich said, “It is imperative that we continue to move the offshore wind industry forward here in NY. Governor Hochul and her team at NYSERDA are effectively adapting to the constantly evolving landscape of this emerging industry. The thousands of local Building Trades Union jobs associated with the NY3 solicitation represent real family sustaining wages and benefits here on Long Island. Our Island’s economic future is tied to the success of the offshore wind industry, so it is important to get this right.”
New York Offshore Wind Alliance Director Fred Zalcman said, “Through Governor Hochul’s leadership, New York is continuing to put in place the fundamental building blocks of a robust and responsible offshore wind industry. As today’s announcement demonstrates, despite recent setbacks New York will continue to swing for the fences in seeking to localize the offshore wind supply chain. With smart policy and sustained commitment reflected in today’s actions, the Empire State is positioning itself to hit many economic development singles and doubles – and indeed home runs – in the very near future.”
New York League of Conservation Voters President Julie Tighe said, “The transition to a clean energy future is not a straight line—any step backward compels us to take two steps forward. By quickly soliciting information to advance a fifth offshore wind solicitation and putting out RFPs on the manufacturing and logistics that will shore up the supply chain, Governor Hochul is making clear that the state remains committed to greening the grid and realizing the economic promise of this new industry.”
Citizens Campaign for the Environment Executive Director Adrienne Esposito said, “New York is on the front lines of climate change, and we are already experiencing the adverse impacts. The need to transition from polluting fossil fuels is an urgent matter. Transitioning to renewable energy and updating our energy infrastructure must be given the highest priority that is why we are thrilled that Governor Hochul is continuing to advance offshore wind and is making substantial investments in the supply chain to grow our emerging ‘wind-ustry’ in New York. We are already beginning to see the environmental, health, and economic benefits offshore wind and the creation of local jobs for New Yorkers. We applaud New York’s continued leadership.”
Today’s announcements further demonstrate New York’s unwavering commitment to clean energy development, sustainability, and economic growth and supports the State’s progress towards achieving the Climate Act goals, including obtaining 70 percent of the State’s electricity from renewable sources by 2030. This includes advancing an accelerated timeline for offshore wind procurements that resulted in recent conditional awards to Empire Wind 1 and Sunrise Wind under the fourth solicitation that will begin delivering power in 2026.
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 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 economywide 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.
