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New York State’s Microgrid Development Incentives: NYSERDA Rolls Out Stage 2 of NY Prize Competition

On April 20th, the New York State Energy Research and Development Authority (NYSERDA) issued a request for proposals (RFP) for Stage 2 of the NY Prize Community Grid Competition. The NY Prize Competition supports the development of community microgrids in order to enhance local power supply reliability and resiliency, including minimizing power outages associated with emergencies, natural disasters, etc. Ultimately, up to $40 million will be made available to develop such microgrids.

Stage 2 is part of a three-step process: under Stage 1, up to $100,000 was awarded to each of 83 proposals to conduct microgrid feasibility studies; Stage 2 focuses on detailed engineering design, financial, and business plans; and Stage 3 will award up to $5 million for seven projects for build-out and construction and post-operational monitoring support. 

Communities are invited to submit proposals for the Stage 2 award by October 12, 2016. Participation in Stage 1 is not a prerequisite to responding to the Stage 2 RFP; however, Stage 2 proposals must include a completed feasibility assessment, including a benefit cost analysis, that mirrors the Stage 1 assessment. Proposals must introduce a minimum 15% cost-sharing of total project costs. Up to ten proposals will be selected and approximately $8 million is available in funding for Stage 2.

A Stage 2 proposal should offer a clear understanding of how the Detailed Engineering Design and Financial and Business Plan Assessment will be addressed for the proposed microgrid.  Stage 2 demands greater detail on key issues in order to develop a microgrid, including ownership structure, financing and sources of funding, utility interconnection hurdles, whether the viability of the microgrid is dependent on special tariff arrangements, investment credits, or subsidies, and appropriate operating arrangements with customers served by the microgrid.  Proposals must also include budgeting work plans for specific financial milestones and cost-sharing estimates.  In addition, proposals should demonstrate careful consideration of all procurement laws that may apply through Stage 3 and project implementation. An applicant should outline a rational and viable path to address these issues. The feasibility assessment report checklist provides a detailed overview of these requirements.

A Stage 2 Outreach and Informational Session will take place in May 2016, and Stage 2 contracts are expected to be awarded in December 2016. The Stage 3 process is anticipated to start in January 2018.

© 2020 Beveridge & Diamond PC


About this Author

Mr. Gordon's practice includes providing legal services to local government

Mr. Gordon's practice includes providing legal services to local government, energy, real estate development, natural resource, manufacturing and waste management companies in all aspects of environment and land use law.

Representative matters during the past several years include numerous administrative and judicial proceedings relating to hazardous waste and sanitary landfill issues, environmental impact statements and public hearings for the siting of major electric generating facilities, large commercial and industrial real estate...

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Michael G. Murphy, Beveridge Diamond Law Firm, Environmental Attorney

Michael Murphy’s practice is primarily concentrated on energy, land use, regulatory permitting, environmental compliance, contract disputes and litigation matters.  Mr. Murphy has represented private clients in a variety of regulatory matters, including permit applications to federal, state, and local agencies, review under New York’s State Environmental Quality Review Act (SEQRA), contaminated site remediation programs in New York and New Jersey, administrative enforcement actions and other compliance matters.  He also represents private clients in major power plant project proposals.  His litigation experience on behalf of private clients includes contract disputes, Superfund, SEQRA, and common law claims based on negligence, trespass, nuisance, fraud, and misrepresentation.  

John H. Paul, Environmental, Energy, lawyer, Beveredige Diamond Law Firm
Of Counsel

John H. Paul's practice focuses on environmental and energy law, and environmental quality review of project proposals.

His environmental practice focuses on regulatory compliance, permitting, and administrative law, as well as counseling clients on energy, takings, environmental quality review, and land use matters. John has helped obtain, modify and renew permits under state and local programs governing energy facility siting, air, stormwater, solid waste, and wetlands development. John’s compliance counseling addresses the handling, transport...

Sarah A. Kettenmann, Beveridge Diamond, general environmental litigation lawyer, regulatory practice attorney

Sarah Kettenmann maintains a general environmental litigation and regulatory practice. Prior to joining the Firm, Sarah served as a judicial clerk for Chief Justice Chase T. Rogers in the Supreme Court of Connecticut.

During her time at Pace Law School, Sarah  served as a judicial extern for Judge Laura Taylor Swain in the U.S. District Court for the Southern District of New York (S.D.N.Y.), and  interned in the Civil Division of the U.S. Attorney’s Office, S.D.N.Y., and in the King’s County District Attorney’s Office.  She also served as an...

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