New York Shores Up Funding for Key Energy Efficiency Program

It will get an immediate funding boost, which officials say should be enough to keep the program stable until at least 2027. The additional funding comes from the East Coast cap and trade program RGGI, which requires power plants in 10 states to pay for their greenhouse gas emissions. The participating states recently agreed to renew the program for another decade and tighten the emissions caps, which should generate more revenue.

As a result, the state energy authority NYSERDA now says it plans to put $110 million in RGGI funds toward Empower+ this year and $120 million next year — more than four times the amount announced over the summer. Those annual sums will make Empower+ one of the largest recipients of the cap and trade proceeds.

In a presentation on Thursday, NYSERDA’s David Sandbank said the additional funds would be enough to keep the overall Empower+ budget steady for the next two years. (The program draws from several sources besides RGGI.) The new draft plan would see RGGI funding for Empower+ cut in half in fiscal years 2028 and ’29, however; Sandbank said the state hoped to identify other sources of funding to close the gap by then.

Hochul’s office said the announcement showed her determination to “help families that need it most.”

“At a time when clean energy investments are under attack by Republicans in Washington, the Governor has committed tens of millions of dollars to key programs like EmPower+ to help struggling families and NYSERDA’s action is one way to ensure these critical programs continue into the future,” said spokesperson Ken Lovett.

Lisa Marshall, director of organizing and advocacy at the group New Yorkers for Clean Power, told New York Focus on Friday that she was “elated” at the restored Empower+ funding and the governor’s signature of a bill ending the “100-foot rule” subsidy for new gas hookups.

The moves capped off a year that has seen the governor roll back one major climate policy after another.

“We hope that the area of energy affordability is an area where we can all agree, even if we’re not in agreement on some of the other areas of the governor’s agenda,” Marshall said.

Hochul’s administration is fighting a court order to implement a core part of New York’s climate law, which could bring a RGGI-style carbon pricing program to the state’s entire economy. Such a program could raise billions of dollars a year for programs like Empower+.

Advocates are still planning to push for more Empower+ funding in next year’s budget to keep up with growing enrollment.