Governor Kathy Hochul today announced that the New York Power Authority Board of Trustees approved economic development awards under the state’s ReCharge NY program to 21 firms that will spur more than $800 million in capital investments and support nearly 4,500 jobs — with 727 of those jobs newly created. In addition, low-cost Niagara hydropower was awarded to a firm in Buffalo to spur $8.6 million in capital investments in the region and $670,000 in funding awards were approved to three firms through the Western New York Power Proceeds Fund.
“These economic development awards from the New York Power Authority support New York’s nation-leading transition to a clean energy economy,” Governor Hochul said. “By leveraging low-cost power, the ReCharge NY program is revitalizing communities across New York State, catalyzing billions of dollars of investment and creating tens of thousands of jobs.”
The approved allocations of more than nine megawatts (MW) of low-cost power under the ReCharge NY program will be directed to 21 companies in the Capital District, Central New York, Finger Lakes, Southern Tier, Hudson Valley, New York City, Western New York and on Long Island.
ReCharge NY has strengthened New York State’s economy by encouraging companies to retain and create jobs, while sparking capital investment throughout the state. ReCharge NY offers power contracts up to seven years. Half of the power — 455 MW — is from New York Power Authority’s (NYPA) Niagara and St. Lawrence-Franklin D. Roosevelt hydroelectric power plants. The remaining 455 MW is lower-cost power bought by NYPA on the wholesale market.
The NYPA board approved a 450-kilowatt (kW) ReCharge NY power allocation to Cummins, a designer and manufacturer of engines and power generation products in the automotive industry. Cummins will invest $452 million at its Chautauqua County site to retool the facility for its next generation of products. The firm’s expansion will create 90 jobs and support an additional 1,280 existing jobs.
Additionally, the NYPA Board of Trustees awarded a low-cost ReCharge NY power allocation to iSpice Foods in Cortland County. iSpice is a leading importer, processor, and supplier of herbs and spices from around the world. The firm will invest $25 million to purchase and renovate a building so that it may accommodate more than 50 production lines. The new facility will also include a laboratory for research and development of new products. iSpice received a 2.25-MW low-cost power allocation and has committed to creating 350 jobs in Central New York.
A full list of today’s ReCharge NY power allocations and economic development awards is available here.
New York Power Authority Chairman John R. Koelmel said, “Today’s economic development announcements further demonstrate the depth and breadth of the Power Authority’s impact on the Buffalo-Niagara area and the larger Western New York region. Today’s actions by the NYPA Board of Trustees directly support Cummins $500 million investment in Chautauqua County while also enabling the Hispanic Heritage Council to build a cultural and educational center on Buffalo’s westside. The Power Authority is continuing to leverage low-cost Niagara hydropower to improve the economic and cultural well-being of our host communities.”
New York Power Authority President and CEO Justin E. Driscoll said, “The low-cost power allocations approved by the NYPA Board today will help support New York businesses, create jobs, and spur capital investments. By leveraging clean, renewable hydropower, the Power Authority is helping grow local economies and communities. The funding awards approved at today’s meeting will help highlight and preserve Western New York’s unique cultural heritage.”
At today’s meeting, the NYPA board also approved a 410-kW low-cost Niagara hydropower allocation to Father Sam’s Bakery in Buffalo, a wholesale bakery specializing in the production of flour tortilla and flatbread products. The award will support the bakery’s $8.6 million expansion, which includes a 16,875-square-foot addition and the installation of two fully automated flour tortilla lines that are expected to increase production capacity by approximately 40 percent. As a result of its expansion, Father Sam’s will create 12 permanent, full-time jobs.
Low-cost Niagara hydropower is available for companies within a 30-mile radius of the Power Authority’s Niagara Power Project or businesses in Chautauqua County.
The NYPA Board of Trustees also approved $670,000 in funding awards from the Western New York Power Proceeds Fund to enterprises in Buffalo.
Launch, a non-profit that provides support to startups, was awarded $250,000 in funding to support a new project that will help train entrepreneurs with companies that have high growth potential. Participants will receive individual and group training through in-person and virtual sessions to prepare a business model and plan to help attract business investment. The project is expected to train up to 100 businesses in a two-year period.
The Buffalo Niagara Convention & Visitors Bureau was awarded $120,000 in power proceeds funding to support a marketing campaign to attract people with an affinity for art, heritage tourism, and outdoor recreation to the Buffalo-Niagara region. Marketing research tools will allow the firm to determine the project’s impact on visitation to the region.
The NYPA board also approved a $300,000 funding award to the Hispanic Heritage Council of Western New York. The council is a not-for-profit organization dedicated to preserving the region’s Hispanic culture, plans to construct a three-story, 36,000-square foot cultural and educational center on Buffalo’s west side. The building will feature a theater, event space, media center, learning labs, and offer workforce and business development programs.
The NYPA funding award is made possible through net earnings resulting from the sale of unused hydropower generated at the Power Authority’s Niagara Power Project and stems from power proceeds legislation signed into law in 2012.
New York State’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering 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 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 $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York’s clean energy sector in 2021 and a 2,100 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 trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with nearly 400 registered and 100 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.
About NYPA
NYPA is the largest state public power organization in the nation, operating 16 generating facilities and more than 1,400 circuit-miles of transmission lines. More than 80 percent of the electricity NYPA produces is clean renewable hydropower. NYPA finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. For more information visit www.nypa.gov and follow us on Twitter, Facebook, Instagram, Tumblr and LinkedIn.
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