Governor Hochul Announces Economic Development Awards Spurring More Than $5.2 Billion in Capital Investments and Supporting Nearly 6,000 Jobs

Governor Hochul Announces Economic Development Awards Spurring More Than $5.2 Billion in Capital Investments and Supporting Nearly 6,000 Jobs

GOVERNOR HOCHUL ANNOUNCES ECONOMIC DEVELOPMENT AWARDS

SPURRING MORE THAN $5.2 BILLION IN CAPITAL INVESTMENTS AND

SUPPORTING NEARLY 6,000 JOBS

Western New York Firms Supported With Niagara Hydropower to Create More Than 100 Jobs

NYPA Board Approves $1 Million Funding Award to Restore Cultural Center in Niagara County

Governor Hochul today announced low-cost power awards to 11 firms that will spur more than $5.2 billion in capital investments. The awards, approved by the New York Power Authority Board of Trustees, support 5,781 jobs throughout the state. In addition, two funding awards, totaling more than $1 million, were awarded to two firms in Western New York, including the Niagara Arts & Cultural Center.

"My administration is spurring $5.2 billion in low-cost power investments across the State of New York - helping businesses thrive, and creating and maintaining jobs for New Yorkers," Governor Hochul said. "The Empire State is open for business, and these substantial investments in a clean energy future underscore our position as a global hub for modern manufacturing."

ReCharge NY

The approved allocations of nearly 32 megawatts (MW) of low-cost power under the ReCharge NY program will be directed to nine companies in the Capital District, Finger Lakes, Southern Tier, Mohawk Valley, Hudson Valley, New York City and on Long Island.

First announcedby the Governor in May 2023, fairlife, a producer of milk and protein shakes, is investing $650 million to construct a 745,000 square-foot manufacturing facility in Monroe County to produce milk beverages in the Town of Webster that will lead to the creation of up to 250 jobs. Empire State Development (ESD) is additionally providing up to $21 million in assistance for the project through the performance-based Excelsior Jobs Tax Credit Program in exchange for the job creation commitments.

Also included among the ReCharge NY awards approved at today's meeting was a 15 MW power allocation to GlobalFoundries, a Saratoga County-based semiconductor manufacturer, to expand its existing Fab 8 manufacturing site and then build a new, 358,000 square-foot semiconductor manufacturing facility on its campus in Malta as part of a nearly 2 million square-foot expansion, tripling its capacity to meet growing demand for chips. The NYPA board also approved an additional 90 MW of High Load Factor power that NYPA will procure for GlobalFoundries on the energy market. Earlier this month, Governor Hochul announcedGlobalFoundries' $11.6 billion investment to expand its Saratoga County manufacturing plant.

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 with terms up to seven years. Half of the power - 455 MW - is from NYPA's 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.

A full list of today's ReCharge NY power allocations and economic development awards is available here.

Western New York Hydropower

At today's meeting, the NYPA Board of Trustees approved low-cost Niagara hydropower allocations to Buffalo Games and Mayer Brothers in Western New York firms.

Buffalo Games, an Erie County manufacturer of jigsaw puzzles and board games, was awarded 750 kilowatts (kW) of low-cost Niagara hydropower by the NYPA board to support the firm's $6.5 million expansion project. Buffalo Games is upgrading its manufacturing capabilities, warehousing and distribution infrastructure, and power service. The expansion is expected to increase its jigsaw puzzle production by more than six million units annually and create 95 jobs.

ESD is incentivizing Buffalo Games' continued growth in Erie County by providing up to $1 million in Excelsior Jobs Program tax credits in exchange for job creation commitments. In addition, Buffalo Games also received a $105,000 economic development grant from National Grid.

The NYPA trustees also approved a 210-kW Niagara hydropower allocation to Mayer Brothers for a more than $1.5 million expansion project. Mayer Brothers, one of the oldest family-owned businesses in New York State, is a manufacturer, processor, and distributor of apple juice, cider, water and other beverage products. The firm, established in 1852, will construct a new building to produce bottles used in the cider and water sectors of its operation. The building will house additional equipment and machinery related to its bottling operations, accommodating an increase in the output of bottles, and allowing the company to produce beverages in a more efficient and cost-effective manner. The expansion project will support nearly 300 jobs, with six being newly created.

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.

Western New York Power Proceeds

At today's meeting, the NYPA board also approved more than $1 million in funding awards from the Western New York Power Proceeds Fund to the Niagara Arts & Cultural Center and Irish Welding in Erie County.

The Niagara Arts & Cultural Center, a non-profit organization that houses work from more than 100 artists and is comprised of three theaters, a radio station, a public classroom space, and two public and numerous private galleries, was awarded $1 million of Power Proceeds funding to support an $8.5 million restoration project. The project will upgrade the facility's Legacy Theatre, associated restrooms and energy infrastructure, including upgrading the facility's HVAC system. The project is also being supported by a $4 million capital grant from the Regional Economic Community Assistance Program, which is managed by ESD.

The NYPA board also approved an $87,000 funding award to Irish Welding, a Buffalo-based, family-owned company that distributes carbonic supplies and gases, and soft drink syrup and juice products in Western New York. The funds will be used by the firm to undertake a nearly $437,000 project to construct a new water line. Irish Welding currently receives its water from an old, 3,000-foot line often subjected to railroad traffic vibration that has caused leaks. The project will allow the company to remain at its current location, supporting 83 jobs.

NYPA funding awards are 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 Power Authority Chairman John R. Koelmel said,"The Niagara hydropower allocated to Buffalo Games and Mayer Brothers will ensure that the two Western New York-based businesses have the resources to expand their operations, creating more than 100 jobs and strengthening the region's economy. The New York Power Authority is committed to its support of Western New York through the allocation of low-cost power from the Niagara Power Project, which supports tens of thousands of regional jobs in the region and is the backbone of New York's clean energy economy."

New York Power Authority President and CEO Justin E. Driscoll said, "The Power Proceeds funding approved by the NYPA board will help the Niagara Arts & Cultural Center preserve a nationally recognized historic building and support its mission to provide a creative space for local artists and art enthusiasts. The funding awards approved at today's meeting underscore the Power Authority's commitment to being a good neighbor to communities surrounding NYPA facilities and infrastructure."

Empire State Development President, CEO & Commissioner Hope Knight said,"Governor Hochul's comprehensive approach to grow New York's economy is helping businesses like fairlife, GlobalFoundries and Buffalo Games and non-profits like Niagara Arts & Cultural Center expand, increase their workforce and improve communities. With NYPA and ESD incentives, we are taking a strategic approach to strengthen the Empire State and our efforts are demonstrated with these success stories."

State Senator Tim Kennedy said,"Through dedicated investments in our workforce and business community, New York is clearly and strategically prioritizing the growth of our greater economy. I'm happy to see these awards approved by NYPA's board, and firmly believe this builds on our state's commitment to advancing an ambitious climate agenda."

State Senator Rob Ortt said, "The investments provided by NYPA to businesses in Western New York and throughout the state ensure our workforce will be well-equipped to handle the increased demands of our growing economy. I'd like to thank Chairman Koelmel and the entire board of trustees for their continued support of local businesses in New York State."

State Senator Patrick Gallivan said, "NYPA's allocation is critical to the expansion of Mayer Brothers, which supports nearly 300 local jobs and Western New York families. The Power Authority provides low-cost power resources that help local businesses grow and prosper. I thank Mayer Brothers for its ongoing commitment to our community and wish the family-owned business continued success."

Assemblymember Angelo Morinello said,"I'd like to thank NYPA and Governor Hochul for their continued support for economic development and their focus on our great Niagara Arts & Cultural Center. This grant will assist in preserving this historic building and promote the Arts. The Arts bring cultures together with a common goal of creativity, camaraderie, and friendships."

National Grid Regional Director Ken Kujawa said, "Buffalo Games is one of many companies with whom we've worked that have benefitted from our robust suite of economic development programs; they've demonstrated that they're expanding operations, retaining jobs, and adding staff members. Through our Electric Capital Investment Grant Program, which offsets business expansion-related utility infrastructure upgrade costs, we provided $105,000. We look forward to continuing to work with Buffalo Games to identify cost-saving opportunities through other programs, including those that offer energy efficiency incentives."

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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 $46 billion in 65 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 400 registered and more than 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.govand follow us on Twitter, Facebook, Instagram, Tumblrand LinkedIn.

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