ABC
Huntington Now has published the following letter to Governor Hochul from our Chapter President Brian Sampson:
Honorable Governor Hochul –
New York’s clean energy goals are ambitious and necessary. We agree the state must expand renewable energy capacity across solar, wind, geothermal, and other technologies. But at the current pace and cost structure those goals are increasingly out of reach.
The simple reality is New York cannot build the volume of renewable energy it needs if it continues to impose policies that artificially inflate construction costs.
Today, any renewable energy project of 1 megawatt or more is subject to prevailing wage mandates set by the Department of Labor. At a time when material costs are surging due to known and unknown tariffs, fuel prices remain volatile due to the conflict in the Middle East, and supply chains are still strained, these mandates are making already expensive projects even more cost-prohibitive. If the state is serious about scaling renewable energy, these requirements must be suspended.
The consequences of maintaining the status quo are clear:
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New York already has some of the highest construction costs in the country, and in New York City, among the highest in the world, putting the state at a competitive disadvantage.
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Costs have risen more than 20% since 2022, according to ABC economists, driven by workforce shortages, insurance costs, tariffs, and supply chain challenges—pressures that show no signs of easing.
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Prevailing wage mandates drive construction costs up by 13% to 25%, as New York relies on the highest union-negotiated rates rather than true local market averages.
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A significant share of project funding is effectively lost before construction begins, reducing the total number of projects that can be built.
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Billions in taxpayer dollars will be wasted, resulting in fewer renewable energy projects and slower progress toward climate targets.
Continuing to layer inflated wage mandates on top of these realities is not sustainable policy. It is a direct obstacle to achieving the state’s own energy goals and one you can change.
Every dollar spent on unnecessary cost premiums is a dollar that could have gone toward building additional renewable capacity. By suspending prevailing wage requirements on projects of 1MW or greater, New York can immediately unlock the ability to build more projects, faster, and at a scale that matches its ambitions.
If we fail to act, the outcome is predictable. There will be fewer projects, higher costs, and missed climate targets.
Our members are ready to build New York’s energy future. What we need is a policy environment that makes that possible, not one that holds it back. We urge your administration to take immediate action to remove the prevailing wage requirement and allow the industry to deliver the clean energy infrastructure New Yorkers are counting on.
Sincerely,
Brian Sampson
President, Empire State Chapter
President, Empire State Chapter
Associated Builders and Contractors