Authors: Nora Goodman and Kate Courtin
A New York court recently found the Hochul administration to be in violation of its climate law for failing to put in place regulations that would achieve the state’s emissions limits. Just days after the court’s ruling, Governor Kathy Hochul signaled her intent to appeal, citing affordability concerns as the primary impediment to advancing the state’s climate goals.
But robust evidence in New York and experience from other states shows that the choice between climate action and affordability is a false one. By moving forward with cap-and-invest — a powerful and flexible policy tool — Governor Hochul can deliver on both.
Court directs Hochul administration to implement the Climate Act
On October 24, 2025, the Albany County Supreme Court found that New York’s Department of Environmental Conservation (DEC) violated the state’s Climate Leadership and Community Protection Act (CLCPA or “Climate Act”) by failing to issue regulations to ensure compliance with the law’s climate targets. The case was decided following a petition brought to the court by Citizen Action of New York, PUSH Buffalo, Sierra Club, and WE ACT for Environmental Justice.
Environmental Defense Fund, with Riverkeeper and Save the Sound, submitted an amicus brief, outlining that existing regulations were insufficient to meet the Climate Act’s emission reduction requirements and that DEC had failed to prioritize reducing greenhouse gas and local air pollution in disadvantaged communities, as the law mandates.
Governor Hochul has indicated that her administration is preparing to challenge the court’s ruling, which underscores the unambiguous nature of the Climate Act’s requirements. The order states, “although more than 18 months have elapsed since [the] statutory deadline passed, it is undisputed that DEC has not issued regulations that comply with the […] terms of the Climate Act.” The order further notes that given DEC’s clear mandate to put in place regulations, “DEC does not have the discretion to say no or to decide that it has the authority to choose not to follow the express legislative directive at issue.”
There’s no disagreement that New Yorkers need relief from increasing energy costs, and this is precisely why Governor Hochul needs to lean in rather than step back, implementing policies that can lower energy burdens for households and push back against the Trump administration’s attempts to lock communities into outdated, expensive, and polluting fossil fuels. Now is the moment for leadership: it’s time to put state government resources back to work on solutions instead of further efforts to delay.
New Yorkers cannot afford further delay on the Clean Air Initiative
If well designed, the Clean Air Initiative — New York’s proposed cap-and-invest program — can cut climate and air pollution at a pace and scale that meets the requirements of state law while putting money back in working families’ pockets and investing in affordable clean energy and healthy, resilient communities.
At its core, Cap-and-Invest is built to benefit communities: It makes polluters pay for their harmful emissions and directs those dollars to households.
As a result of the Hochul administration’s decision to delay the Clean Air Initiative, the state has already missed out on an estimated $3 billion or more in investments that could be helping communities and households right now access cleaner, cheaper energy today, including over $1 billion that could have already been directly returned to New Yorkers to lower energy bills under the Administration’s original plan.
Analysis of the Clean Air Initiative shows that, with smart policy design, most New York households see cost savings under the program. A study from Resources for the Future and the NYC Environmental Justice Alliance shows that by allocating money raised from polluters via dividends, nearly all households earning up to $200,000 per year — which accounts for about 85% of New York’s households — would see net savings under the program.
These savings grow as families electrify their homes and vehicles or adopt energy efficiency upgrades, actions which are made cheaper and easier by the policy. For example, a study by Switchbox commissioned by EDF and partners finds that cap-and-invest could help 46% of New York households transition to clean, efficient heat pumps by 2035, saving the average household up to $1,022 annually. And the study found that more ambitious versions of the program, which increased allowance prices paid by polluters, actually would result in more households experiencing these savings.
As the Trump administration obstructs clean energy projects and doubles-down on expensive fossil fuel infrastructure, New York has a critical opportunity to secure cheaper, cleaner energy for its residents with the Clean Air Initiative.
Leading states are demonstrating that cutting costs and cutting pollution go hand-in-hand
Across the country, regional and state-level cap-and-invest programs are further illustrating that affordability and ambitious climate action go hand-in-hand.
California’s cap-and-invest program alone has generated over $30 billion in climate and community investments since 2013 and directed $16 billion to reduce household energy costs through utility bill credits. As a result, the legislature voted to extend the program in September 2025, with Governor Newsom highlighting Cap & Invest as a tool to address affordability.
In signing the bill, Governor Newsom said:
“I just signed into law the biggest electricity bill refunds in a decade — up to $60 billion to help bring down costs for California families […] we’re doubling down on our best tool to combat Trump’s assaults on clean air — Cap-and-Invest — by making polluters pay for projects that support our most impacted communities.”
The reauthorized program is projected to save California’s most economically vulnerable families $3.9 billion between 2031 and 2045. It is also projected to create 287,000 new jobs and generate $55 billion in statewide economic growth.
The Northeast’s Regional Greenhouse Gas Initiative (RGGI) — a cap-and-invest program for power plants operating across ten states — has for over a decade delivered consumer savings while cutting emissions from power plants nearly in half. Since the program’s inception, over $9 billion in investments in energy bill assistance programs, energy efficiency and clean energy are projected to save families and businesses an estimated $20 billion.
Voters support cap-and-invest policies that are delivering cleaner, cheaper energy
Earlier this month, voters in Virginia and New Jersey elected Governors by wide margins who committed to keeping their states part of RGGI, defeating candidates actively campaigning against the program.
Virginia Governor-elect Abigail Spanberger supported the state rejoining RGGI as part of her platform to make energy bills more affordable, emphasizing the value of investments from the program in driving cost-saving energy efficiency programs. “It’s not only important to the goal of reducing our state’s emissions and meeting some clean-energy goals (…) but it’s also unbelievably valuable for our ability to use this revenue to make investments in our community,” Spanberger said. Spanberger defeated her opponent, a vocal opponent of RGGI, by roughly 15 points — 9 points more than Kamala Harris’s margin of victory in the state in 2024.
In New Jersey, clean and affordable energy likewise played a critical role in the recent gubernatorial race. Governor-elect Mikie Sherrill defeated her opponent — who pledged to pull New Jersey out of RGGI “on day one” — by more than 14 points.
In Washington, voters successfully defended their cap-and-invest program on the ballot in 2024, beating a repeal attempt by a 24-point margin. An unprecedented coalition of over 500 organizations including labor unions, major businesses, Tribes, community groups and environmental groups successfully defended one of the nation’s most ambitious climate policies as they felt and saw the program’s benefits. In the next decade, the program is expected to create 40,000 new jobs and unleash $9 billion in economic growth.
Existing programs are demonstrating proven results — delivering energy cost savings and cutting health-harming pollution. As recent evidence shows, these programs are popular where voters are experiencing their benefits firsthand.
Next steps
In this pivotal moment, the Clean Air Initiative gives New York the opportunity to slash pollution, shield families from rising energy costs and push back against federal rollbacks that would stick New Yorkers with dirty, expensive energy sources. Governor Hochul can and should lead by implementing the Clean Air Initiative and demonstrating that with powerful policy, New York and other states alike can tackle affordability and climate crises at once.