Albany Update
Funding Will Allow Second Ave. Subway Project to Continue
ALBANY—New York Gov. Kathy Hochul announced on Tuesday (July 30) that the state will provide $54 million to support utility work that will allow the Second Avenue Subway project to proceed while state lawmakers address the massive capital funding gap caused by the recent decision by the governor to put the congestion pricing tolling program on pause.
Multiple press reports indicate that the MTA previewed its $51.5-billion five-year capital program and expects the governor and State Legislature to approve the funding gap caused by the pause in congestion pricing that was to generate $15 billion to the transportation agency.
The capital funding provided to the Metropolitan Transportation Authority will be earmarked towards the utility relocation contract (“Contract 1”) for Phase 2 of the expansion project, which will deliver subway service to residents of East Harlem.
With this funding support the MTA can immediately proceed with the work to relocate utility lines along Second Avenue and nearby streets, putting the project in position to advance as scheduled. State officials noted that the action will not impact MTA Capital Program State of Good Repair projects that are prioritized or currently underway.
“I have been committed to the Second Avenue Subway since the day I took office, and we will deliver this project for the people of East Harlem and the millions of riders who will use it every day,” Gov. Hochul said. “When I announced the pause on implementing congestion pricing, I directed my team to think creatively about how to keep these generational investments moving forward. Now, we are committing the funds needed to continue the utility relocation contract, the first step to building this transformational project to meet the needs of everyday New Yorkers.”
MTA Chair and CEO Janno Lieber said, “We are grateful the governor was able to identify new funds to advance the utility relocation project along Second Avenue without impacting funding available for State of Good Repair investments. Advancing that utility work now—while congestion pricing is on pause—puts the MTA in a position to keep the overall Second Avenue Subway Phase 2 project on schedule while Albany resolves how to fund the $15 billion outstanding for the MTA’s 2020-24 Capital Program.”
The second phase of the project will extend Q train service from 96th Street north on Second Avenue to 125th Street and then west on 125th Street to Park Avenue, approximately 1.5 miles in total. There will be three new stations at 106th Street, 116th Street and 125th Street, and a direct passenger connection with the existing 125th Street subway station on the Lexington Avenue subway line. Phase 2 will also feature an entrance at Park Avenue to allow convenient transfers to the Metro-North Railroad 125th Street Station.
New York State Comptroller Thomas DiNapoli estimates the MTA will have a $25-billion shortfall in its five-year capital spending plan as long as the congestion pricing funding program’s funding is not replaced.
Feds to Provide $43M To Support Localities
ALBANY—New York Gov. Kathy Hochul and US Senate Majority Leader Chuck Schumer announced on July 30 that New York State will receive up to $43 million in U.S. Department of Energy funding to benefit under-resourced communities located along the Propel NY Energy transmission line.
The Propel transmission line is a 90-mile innovative electric transmission project that will improve reliability, resiliency and the delivery of clean energy—including offshore wind—through electric grid improvements in parts of Long Island, New York City and Westchester County. The New York Power Authority, which is developing the line with New York Transco, plans to use the funding for the Propel NY Energy Sustainable Communities Initiative to support energy efficiency projects in locations such as local schools, housing authorities, and community service agencies, as well as develop clean energy education and workforce training and career opportunities for residents in under-resourced communities.
U.S. Senate Majority Leader Schumer said, “This substantial $43-million federal investment for communities in New York City, Long Island and Westchester County was made possible by the Inflation Reduction Act I shepherded through Congress, and is paving the way for the era of affordable and renewable energy in New York. This funding supports clean-energy education and develops job opportunities through local schools, housing authorities and community service agencies.”
The Transmission Siting and Economic Development grants, which were awarded to 20 projects across 16 states by DOE recently, will accelerate the permitting of high-voltage, interstate transmission projects, expediting the buildout of a resilient and reliable electric grid. The exact amount of funding will depend on award negotiations, which may take up to 120 days. The funding is made possible through the Infrastructure Investment and Jobs Act.
The Propel NY Energy Sustainable Communities Initiative will engage with local communities near the Propel transmission line, offering energy efficiency projects, clean energy training internships, a clean energy careers program, future energy leader scholarships, student engineering challenges, adult energy literacy programs, and green classroom programs.
New York Power Authority President and CEO Justin E. Driscoll said, “The New York Power Authority is pleased to have been selected for this Transmission Siting and Economic Development funding made possible through the Inflation Reduction Act. Upgrading New York’s transmission infrastructure is critical to the resilience and reliability of New York’s grid, and this federal funding will help ensure that under-resourced communities along the Propel NY Energy line’s route can experience even greater benefits from New York’s growing clean energy economy.”
The Propel transmission line will strengthen the backbone of the electric grid with increased transmission capacity by building new underground and submarine transmission lines in existing public rights-of-way and substation facilities on Long Island, in New York City, and across Westchester County. Propel will efficiently and cost-effectively deliver clean energy to homes and businesses that benefit all New Yorkers and aid the state in achieving critical clean energy goals. Pending regulatory approvals, Propel NY Energy construction is anticipated to commence in 2026 and enter service in 2030.