Opportunity Overview
The New York State Energy Research and Development Authority (NYSERDA) is accepting Round 2 proposals under PON 5989, Empire Building Challenge: Hospitals. The program funds demonstration projects in existing New York hospital buildings that can deliver meaningful, scalable and replicable reductions in energy use and greenhouse-gas emissions.
Funding and Cost Share
Eligible hospitals may request up to $5 million per project. NYSERDA funding may cover no more than 75% of total eligible project cost, so the project must have at least 25% of cost covered from other sources. Awards are milestone based. NYSERDA also states that selected projects may be eligible for an additional $50,000 for operations and maintenance training on newly installed equipment and building systems.
Deadline
Round 2 applications are due September 15, 2026 at 3:00 PM Eastern Time. Because fewer than 48 hours remain, Atlas will not begin new applicant outreach for this round. Publication remains appropriate so already prepared New York hospitals can act on the verified opportunity.
Who May Apply
The proposer must be a New York State hospital, or a legal representative authorized to act on behalf of the hospital, and the hospital itself remains the proposer and contracting party. The eligible facility must be an existing hospital building primarily providing acute, short-term medical and surgical care, including diagnosis, treatment and inpatient housing. Nursing homes, psychiatric hospitals, rehabilitation centers, urgent care facilities, laboratories and research facilities, ambulatory care facilities, and medical offices do not independently satisfy the program definition.
New construction is not eligible. A feasibility study or equivalent analysis must be completed before proposal submission, and a copy must be included with the proposal. NYSERDA’s FlexTech program may separately support part of feasibility-study costs.
Eligible Project Activities
Core eligible work includes heating and cooling electrification, electrification-readiness upgrades, and comprehensive energy-efficiency improvements. Examples include heat pumps, VRF systems, thermal energy networks, steam-to-hot-water conversion, domestic hot-water electrification, envelope improvements, and other measures that reduce building thermal load, energy use, and emissions.
Certain measures are only eligible when paired with a core eligible activity, including energy-efficient medical-equipment upgrades or operating improvements that produce energy savings, electrical infrastructure upgrades, energy storage, and renewable-energy technologies. Lighting-only work, fossil-fuel system conversions, EV or fleet work, EV charging, and new construction are not eligible.
Important Cost and Construction Controls
NYSERDA funding is for eligible installation materials and labor. Third-party consulting, design, recommissioning, and third-party measurement and verification costs are not eligible for PON 5989 funding. Construction, purchase, or installation performed before an executed NYSERDA agreement is not eligible for reimbursement. The FAQ also states that NYSERDA and utility incentives cannot fund the same measure.
Application Package
Applicants submit through the NYSERDA online portal. The current FAQ confirms that proposers may complete Attachment A, Proposal Template, or submit a separate document that follows Attachment A’s format and answers every question. The program also uses Attachment B, Proposal Workbook. The completed feasibility study or equivalent analysis must be included. Supporting documentation demonstrating approval from the hospital’s CEO, CFO, COO, board, or other decision-making body may strengthen the proposal.
Atlas Analysis
Atlas Opportunity Score: 92/100. This is a large, verified New York hospital capital and infrastructure opportunity with up to $5 million available per project and a clearly defined 75% funding cap. The deadline is imminent, so this round is actionable primarily for hospitals that already completed feasibility work and have internal project approval.
N9+ Fit Score: 5/100 conditional. The solicitation can support energy-efficient medical-equipment upgrades only as contingent activities paired with a core electrification or energy-efficiency project and only where measurable energy savings are established. No N9+ role should be assumed or introduced without applicant-specific engineering evidence and cost eligibility. QC Healthcare / Dr. Miltie direct-applicant fit: 0/100 because the hospital must be the proposer and contracting party.
Next Action
Hospitals already preparing a Round 2 proposal should confirm facility eligibility, completed feasibility analysis, at least 25% non-NYSERDA project funding, project approval status, all current portal attachments and workbook requirements, and submit the complete proposal before September 15, 2026 at 3:00 PM ET. Atlas should not initiate new cold outreach for this round because the 48-hour outreach cutoff has passed.
Verified sources: NYSERDA Empire Building Challenge: Hospitals program page, PON 5989 solicitation portal, current NYSERDA funding-opportunities listing, and PON 5989 FAQ.