N.Y. Power Authority Trustees Approve $720,000 in Funding for Two Western New York Businesses
Expansion Projects Will Support the Creation of 28 Jobs
FOR IMMEDIATE RELEASE
WHITE PLAINS — The New York Power Authority (NYPA) Board of Trustees late last month approved $720,000 in funding awards to two companies in Erie County—Innomotive Solutions Group and Nexus Natural Gas LLC—for projects that will create 28 jobs in the region and result in investments of more than $8 million.
This is the sixth round of funding awards, which are made possible from net earnings obtained from the sale into the marketplace of unutilized power from NYPA’s Niagara Hydroelectric Power Project to spur capital investments and job creation in the region.
“These funding awards are another means, in addition to our low-cost hydropower allocations, for NYPA to assist businesses in Western New York,” said John R. Koelmel, NYPA chairman. “The latest proceeds grants will help to ensure that Innomotive Solutions and Nexus Natural Gas will be able to carry out critical expansion projects, in fortifying their presence in our region.”
“Since the establishment of the Western New York Power Proceeds Allocation Board last year, NYPA, in close coordination with Empire State Development and the Western New York Regional Economic Development Council, has ensured these funding awards to the local businesses that really need it, to provide a meaningful benefit to the area,” said Gil C. Quiniones, NYPA president and chief executive officer.
Innomotive Solutions Group, a manufacturer and finisher of roll away doors built specifically to meet the specifications of emergency vehicles, will receive a $150,000 grant to assist in the purchase of a building in Lancaster that it will renovate to accommodate the needs of the company. Innomotive will hire and train 28 new employees to meet its current U.S. market demand. The $5.5 million project will mark the construction of the company’s first U.S.-based facility.
Nexus Natural Gas, an entity formed by seven companies in the Town of Tonawanda that share the common goal of transitioning into cleaner alternative fuels, will receive a $570,000 grant to assist in the construction of a compressed natural gas fueling station for the exclusive use of this partnership. The companies are beginning the conversion of their vehicles to run on compressed natural gas. The $2.8 million project will decrease emissions and improve air quality in Tonawanda and Grand Island, as well as everywhere that the vehicles travel in the state. It will also allow the companies to reduce their operating costs, expedite future growth and lead to the creation of an indeterminate number of jobs in the future.
The NYPA trustees’ action is the result of recommendations made by the Western New York Power Proceeds Allocation Board at an April 28 meeting. The proceeds board’s next meeting is on June 23, when it will consider another round of funding recommendations.
Applications for funding were evaluated under the state legislation that created the Western New York Economic Development Fund in 2012 that authorized NYPA to deposit the net earnings from the market sale of unutilized electricity from two hydropower programs (Replacement Power and Expansion Power) into the established fund.
The legislation stipulates that eligible applicants be located within a 30-mile radius of NYPA’s Niagara project, and that proposed initiatives support the growth of businesses and other enterprises that lead to job creation. Consideration is also given to how the funding awards would be consistent with the strategies and priorities of the Western New York Regional Economic Development Council.
Including the latest awards, 22 enterprises have received funding awards for a total of nearly $14 million since the initial round of funding in 2013. Through the end of March 2014, NYPA has made deposits of more than $36 million into the fund.
Quotes of Support from Elected Officials
Senator George Maziarz said, “These Power Proceeds awards will help local businesses grow right here in Western New York thanks to the presence of our hydroelectric facility. Spurring these kinds of projects is exactly what we had in mind when we created the Power Proceeds program—using local assets to develop local business opportunities.”
Senator Mark Grisanti said, “I am pleased that two companies based in Erie County will benefit from this funding from the New York Power Authority. These funds will help spearhead future investments in our region and help create new jobs in Western New York.”
Assemblyman John Ceretto said, “Creating new jobs in our region benefits everyone from the actual employees to the providers of goods, services and food. We have turned a corner and I know we have a bright future ahead of us. I believe in Western New York.”
Assemblyman Robin Schimminger said, “I am very pleased that NYPA has approved funding for two Erie County projects, including Nexus Natural Gas LLC located in the Town of Tonawanda. The funding for Nexus will allow the company to build a compressed natural gas fueling station, which will not only bring more jobs to the region, but the project will help decrease emissions and improve air quality in the Town and on Grand Island.”
■ The New York Power Authority has been designated as the lead entity via Executive Order 88 by Gov. Andrew M. Cuomo to form a central management and implementation plan to carry out his Build Smart NY plan to reduce energy use by state facilities by 20 percent by 2020. ■ NYPA uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity.■ NYPA is the nation's largest state public power organization, through the operation of its 16 generating facilities in various parts of New York State, participation in a unique public/private partnership to contract for power from a clean generating plant in Queens, and its operation of more than 1,400 circuit-miles of transmission lines. ■ More than 70 percent of the electricity NYPA produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state.■ For more information visit www.nypa.gov and follow us on Twitter @NYPAenergy, Facebook, Instagram, Wordpress, and LinkedIn.