Funding Supports Strategies to Advance Electrification, Increase Energy Efficiency and Reduce Emissions of Large Energy Users
The New York State Energy Research and Development Authority (NYSERDA) announced the seventh round of the Commercial and Industrial (C&I) Carbon Challenge, making $10 million available as part of Round XV of Governor Kathy Hochul’s Regional Economic Development Council (REDC) initiative. The C&I Carbon Challenge supports electrification and emissions reduction strategies at commercial and industrial businesses and institutions to help increase efficiency and reduce the energy use and overall costs of operating large buildings and facilities.
Doreen M. Harris, President and CEO, NYSERDA said, “Each year, the C&I Carbon Challenge welcomes new initiatives that reimagine how New York’s commercial and industrial buildings can be part of the clean energy economy. As part of the seventh round, we’ll continue to invest in modernizing buildings, making them more efficient and helping to offset overall costs for New York businesses and institutions.”
The C&I Carbon Challenge is a competitive program that provides funding to large energy users, such as eligible manufacturers, colleges, universities, health care facilities, and office building owners in New York State, as well as decarbonization solution providers working with these businesses and institutions, to implement cost-effective clean energy projects that reduce carbon emissions. A combination of project types will be considered, including energy efficiency, manufacturing process improvements, carbon capture technology, renewable generation, or energy storage. While any project type that reduces emissions is eligible, NYSERDA is interested in those that electrify buildings or manufacturing equipment, capture greenhouse gas emissions, reduce industrial process emissions, and/or utilize low-carbon fuels.
Through the challenge, NYSERDA will provide awards ranging from $500,000 to $5 million to partially offset clean energy project costs for the largest commercial and industrial energy users in the state. To be eligible, a project portfolio will need to reduce at least 25,000 metric tons of carbon dioxide equivalent (mtCO2e) over the lifetime of the projects. The deadline to apply through the State’s Consolidated Funding Application is July 31, 2025 at 4:00 p.m.
Awardees are selected based on their plans for project implementation, institutional commitment to sustainability, overall level of emissions reduction, and project resiliency benefits. NYSERDA’s scoring criteria also awards points for emission reductions that occur in designated disadvantaged communities and/or deliver benefits in such communities. In addition, Regional Economic Development Councils will review projects and provide scores that reflect how well a project aligns with a region’s goals and strategies.
Empire State Development President, CEO & Commissioner Hope Knight said, “Empire State Development is NYSERDA’s committed partner as Governor Hochul and her Administration actively promote a more sustainable, resilient future for New York State. By embracing cleaner solutions, large energy users such as manufacturers not only reduce their carbon footprint—they also unlock innovation, lower operational costs, and positively contribute to New Yorkers’ long-term quality of life.”
The REDC process supports and empowers regional stakeholders in developing strategic plans to harness local resources to stimulate economic development and create jobs statewide. To date, through the REDC Initiative, more than $8 billion has been awarded to more than 10,000 job creation and community development projects consistent with each region’s strategic plan. Since its inception, the C&I Carbon Challenge has made 23 awards to companies and higher education institutions that will cumulatively reduce 4.5 million metric tons of carbon dioxide equivalent, equal to removing 1 million cars from the road for one year. In addition, it has encouraged greater interest in clean energy projects and has served to stimulate the energy efficiency market related to commercial and industrial buildings.
Buildings are one of the most significant sources of carbon emissions in New York State, and integrating energy efficiency and electrification measures will help achieve healthier, more comfortable buildings. NYSERDA’s programs can benefit most businesses and organizations across the State, but large energy consumers have unique needs when it comes to increasing efficiency and lowering emissions. Building on New York State’s support for private sector solutions to lower the cost of clean energy, 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.
Funding is available through the State’s 10-year, $6 billion Clean Energy Fund.
New York State’s Climate Agenda
New York State’s climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.
NYSERDA
Since 1975, NYSERDA has been working to advance New York’s energy system and economy. As a public benefit corporation, NYSERDA has served as an objective source for information and technical expertise to drive innovation and investment. NYSERDA professionals have worked for the past 50 years to protect the environment and help New Yorkers increase energy efficiency, save money, and reduce reliance on fossil fuels. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, or Instagram.
About the Regional Economic Development Councils
The Regional Economic Development Council initiative is a key component of the State’s approach to State investment and economic development. In 2011, 10 Regional Councils were established to develop long-term strategic plans for economic growth for their regions. The Councils are public-private partnerships made up of local experts and stakeholders from business, academia, local government, and non-governmental organizations. The Regional Councils have redefined the way New York invests in jobs and economic growth by putting in place a community-based, bottom up approach and establishing a competitive process for State resources. Learn more at regionalcouncils.ny.gov.
About the Consolidated Funding Application
The Consolidated Funding Application was created to streamline and expedite the grant application process. The CFA process marks a fundamental shift in the way state resources are allocated, ensuring less bureaucracy and greater efficiency to fulfill local economic development needs. The CFA serves as the single-entry point for access to economic development funding, ensuring applicants no longer have to slowly navigate multiple agencies and sources without any mechanism for coordination. Now, economic development projects use the CFA as a support mechanism to access multiple state funding sources through one application, making the process quicker, easier, and more productive. Learn more about the CFA here.
