Decarbonize NY - New York's Clean Energy Priorities for 2026-2030: Buildings Lead, Storage Rises, Transportation Gains Ground
News, thoughts and tools to guide property owners and managers, lenders, developers and
sustainability professionals in their pursuit of a greener New York.
Across a series of orders, budgets, and legislation, New York State has laid out its clean energy spending priorities for the second half of the decade — and the signal is clear: building decarbonization commands the lion’s share of near-term capital, while energy storage and clean transportation are ascending fast.
Buildings: The Dominant Priority
The May 2025 energy efficiency and building electrification orders of the New York State Public Service Commission (the “PSC”) authorized $5.36 billion for 2026–2030 — roughly $1 billion per year — to be administered by utilities and NYSERDA. The orders mark a strategic shift: weatherization and envelope improvements now take precedence over historically common energy efficiency program measures, like lighting and appliance rebates. Nearly $1.6 billion is reserved for low- and moderate-income households. The All Electric Buildings Act, which was adopted in 2023 and was scheduled to take effect last month, requires most new construction under seven stories to be all-electric starting in 2026, with all remaining new buildings following by 2029. The new law has been challenged by several trade groups and labor unions and its implementation has been suspended pending an appellate court decision.
Governor Hochul’s $1 billion Sustainable Future Program reinforces the buildings-first theme, directing over $450 million toward retrofits, heat pumps, and programs like EmPower+ and Clean Green Schools, plus $200 million for thermal energy networks at SUNY, CUNY, and municipal campuses.
The PSC’s January 2026 order reshaping NY Green Bank further confirms the priority, directing 40% of NY Green Bank investment toward building decarbonization — including a 20 percent sub-target for affordable housing and 10 percent for energy efficiency — while raising the disadvantaged communities goal from 35% to 40% of deployed capital.
Energy Storage and Clean Transportation: Growing Allocations
Energy storage receives the second-largest Green Bank allocation at 25%, consistent with the state’s expanded 6 GW storage target and NYSERDA’s first bulk storage solicitation in mid-2025. Clean transportation and clean energy generation receive 20% and 15%, respectively, while the Sustainable Future Program adds over $250 million for electric school buses, fast-charging stations, and Charge Ready NY. A new 5% Community Lender Finance Pool targets underserved areas.
The Broader Picture
Renewable generation and grid modernization remain essential to New York’s Climate Act mandate of 70% renewable electricity by 2030 and a zero-emission grid by 2040. But New York’s near-term regulatory and budgetary actions reflect a deliberate judgment: the fastest path to emissions reductions and consumer savings runs through the state’s building stock, with equity and affordability embedded at every level.
Contact
Please do not hesitate to reach out to us if you have any questions regarding these developments. Contact Michael J. Clain, Partner, Shanni C. Lynch, Associate, or Kathrine H. K. Pedersen, Law Clerk.
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