$12 Million Announced to Advance Electric Vehicle Integration with the Electric Grid

Initiative Seeks Novel Demonstrations of Medium- and Heavy-Duty Electric and Hydrogen Fuel Cell Technologies

August 3, 2023

Governor Kathy Hochul today announced a $12 million initiative to support the development and demonstration of innovative, replicable solutions that advance electric vehicle adoption and the integration of electric vehicles with the electric grid. The initiative also seeks to support novel demonstrations of medium- and heavy-duty electric and hydrogen fuel cell technologies. In addition to supporting the State’s transition to zero-emission vehicles by 2035, today's announcement advances the Climate Leadership and Community Protection Act requirements to achieve a zero-emission electricity sector by 2040 and reduce emissions 85 percent by 2050.

“As New York continues to advance toward a zero-emission future, it’s imperative that we continue to improve the affordability of clean transportation ownership as we scale up a resilient and reliable energy grid,” Governor Hochul said. “This $12 million initiative offers an innovative way to do both — exploring and supporting options for vehicle charging infrastructure that also provides energy back to the grid. We are committed to making it possible for both residents and companies to transition to owning and charging electric vehicles — building a greener future for all.”

Through this competitive program, administered by the New York State Energy Research and Development Authority (NYSERDA), the State seeks to:

• Advance well-managed electric vehicle (EV) charging infrastructure and reduced grid integration costs;
• Improve the economics of EV ownership for residential consumers and commercial fleet managers;
• Spur research and innovation that supports widespread deployment of EVs as a beneficial asset to both EV owners and grid operators including combining EVs with bi-directional charging, energy storage, and on-site energy generation; and
• Demonstrate medium- and heavy-duty vehicle electrification, either through fuel-cell electric vehicles or standard battery operated EVs.

NYSERDA President and CEO Doreen M. Harris said, “Integrating electric vehicles with the grid gives new meaning to the saying, ‘it’s a two-way street’ with energy flowing in both directions and vehicles increasingly becoming an asset to the grid. Through this initiative, we are driving the development of technology solutions and research that will advance a cleaner grid and cleaner air, while improving the economics of electrifying the transportation sector."

New York State Department of Environmental Conservation Commissioner Basil Seggos said, "Investments in technology and research are advancing electric vehicle adoption and grid infrastructure upgrades, making EVs accessible to more New Yorkers, reducing emissions that disproportionately affect disadvantaged communities, and helping achieve the State’s climate requirements. I applaud Governor Hochul’s commitment to ensuring New York remains a leader in cutting greenhouse gases and promoting the growth of a greener transportation industry.”

New York State Public Service Commission Chair Rory M. Christian said, “I applaud Governor Hochul’s commitment to create a cleaner environment. The PSC recognizes the importance of the electrification of the transportation sector in the attainment of New York State’s climate goals. This commitment will amplify existing efforts and stimulate new investments supporting PSC policies and programs to incentivize the development of electric vehicle charging infrastructure.”

Awards of up to $3 million each will be granted for product development and demonstrations of technologies and business models that help reduce energy demand peaks and provide grid benefits through managed charging/discharging that will lower the overall cost of necessary electric grid infrastructure upgrades. By completing successful demonstrations of electric and fuel cell vehicles in hard-to-electrify use cases, such as heavy on-road vehicles and construction equipment, this initiative is expected to enhance utilization of existing grid infrastructure while contributing to environmental and energy equity and broader deployment of zero-emission vehicles throughout New York State.

Concept papers for consideration for full proposal submission under this new initiative will be accepted through 3:00 p.m. on September 12, 2023. For those selected to move forward, the deadline for full proposal submission is November 8, 2023. A second round of funding may be issued in early 2024 if all funds are not awarded in the first round. To learn more, please register for the informational webinar on August 15, 2023 at 11:00 a.m. For additional information and associated documents, visit NYSERDA’s website.

Dakoury Godo-Solo, Project Manager, Electric Vehicle Charging Systems at Environmental Defense Fund said, "Electrifying medium-heavy duty vehicles can provide enormous environmental and community benefits, but lengthy interconnection delays are already slowing this transition. This funding, together with efforts ongoing at the Public Service Commission, has tremendous potential to support the deployment of innovative charging solutions and business models to minimize grid impacts, speeding interconnections and lowering costs to the benefit of electric vehicle owners and ratepayers alike.”

State Senator Tim Kennedy said, "Through this initiative, New York continues to actively advance an ambitious environmental agenda, and increase accessibility to clean transportation alternatives. By identifying ways to divert the state’s energy reliance to renewable sources, we can achieve our climate goals, strengthen our infrastructure, and continue to build the innovative, sustainable future that New Yorkers deserve."

Assemblymember Didi Barrett said, “Decarbonizing New York’s transportation sector is crucial to reaching our climate goals, and this will require out-of-the-box solutions and innovative clean energy sources,” said Assemblymember Didi Barrett, Chair of the Assembly’s Energy Committee. “This funding will allow us to explore how emerging technologies, like hydrogen fuel cells, can be used to reduce our carbon footprint and expand our state’s electric vehicle charging infrastructure. I thank Governor Hochul and NYSERDA for their leadership.”

Assemblymember William B. Magnarelli said, “New York State continues to make investments to further the development and technologies available to create clean transportation and reduce emissions,” said Assemblyman William Magnarelli, chair of the transportation committee. “New York is committed to Climate Leadership and Community Protection Act goals and advancing equitable access to clean transportation.”

New York State aims to rapidly remove barriers to economy-wide electric vehicle deployment including advancing equitable access to clean transportation in historically marginalized communities which face disproportionate air pollution and health impacts from tailpipe emissions and pollution. In April, Governor Hochul announced that the New York State Public Service Commission initiated a proceeding to implement policies and develop programs related to medium- and heavy-duty electric vehicle charging infrastructure and planning including proactive investment in the utility infrastructure required to serve transportation electrification. The adoption of the Advanced Clean Trucks regulation in December 2021 also supports an increase in the number of medium- and heavy-duty ZEV models available as purchase options for vehicle purchasers and fleets.

New York State’s $1 billion investment in electrifying its transportation sector is vital to meeting the State’s sweeping climate and clean energy plan. New York is rapidly advancing measures that all new passenger cars and trucks sold be zero emissions by 2035, along with all school buses being zero emissions the same year. The state has a range of initiatives that grow access to electric vehicles and improve clean transit for all New Yorkers including EV Make Ready, EVolve NY, the Drive Clean Rebate and the New York Truck Voucher Incentive Program (NYTVIP).

NYSERDA’s Grid Modernization Program, is providing a total of $133 million through 2026 to further research, develop, and provide funding for innovative solutions that support the advancement of a smart, modernized electric grid, remove barriers, and enable the utility investments necessary for full deployment at scale of advanced technologies for the power grid. Since 2016, NYSERDA’s Grid Modernization Program has awarded approximately $65 million under 111 contracts to grid technology companies and research organizations for projects including low-cost, high-accuracy grid sensors, modeling and simulation tools, and advanced engineering solutions for more effective integration of renewable energy resources. Learn more on NYSERDA's website.

Funding for this initiative is through the State’s 10-year, $6 billion Clean Energy Fund. More information about this funding is available on NYSERDA’s website.

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 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 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, $3.3 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $2 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 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 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.