As federal rollbacks drive up energy costs, New York can’t afford to step back on climate

As the federal government ramps up attacks on the foundations of pollution and climate protections, now is the moment for New York to step up, not back. Analysis after analysis shows how a strong, well-designed Clean Air Initiative will cut costs for New York’s working families while cutting climate and air pollution. However, a recent misleading memo is causing confusion around this program, potentially putting billions in benefits for New Yorkers at risk. 

At the precise moment New York should be stepping up, the state is on the verge of backsliding 

Climate policy is under attack at the federal level, and states must hold the line to safeguard progress. Blocking clean energy takes affordable options off the table at a time when Americans are facing rising energy bills. New Yorkers have experienced this recently, as volatile natural gas prices have increased costs this winter. 

New York has a solution: the Climate Leadership and Community Protection Act (CLCPA), which remains one of the strongest climate laws in the country and positions the state as a leader and in opposition to persistent and aggressive federal backsliding. New York must urgently implement this law to unlock its benefits and remain a national leader on climate. The Clean Air Initiative — New York’s proposed cap-and-invest program — is a central policy tool to slash pollution while cutting costs for the vast majority of New Yorkers. It does this by putting a price on pollution, and then using the money raised to lower costs through direct rebates, energy efficiency upgrades, weatherization and more. 

However, last week a memo was shared from the New York State Energy Research and Development Authority (NYSERDA) to the Governor’s office, outlining projected cost impacts from a modeled version of the Clean Air Initiative that has never been formally proposed and appears to omit key policy design features that would ensure the program supports affordability for New Yorkers. By presenting misleading cost assumptions — without including the associated analysis — tied to a hypothetical program design, the analysis presents unrealistic impacts. More concerning, this memo signals that the Hochul administration may be seeking to weaken or alter key elements of the climate law, rather than advancing well-designed policy to implement it.  

New York is already years behind schedule in implementing the CLCPA. That delay is not abstract. It translates into foregone household energy savings, unrealized job growth and continued public health burdens from air pollution. By swiftly implementing the Clean Air Initiative, the state can still unlock billions in savings for working families and demonstrate that climate leadership is economic leadership. 

Analysis after analysis shows that the Clean Air Initiative can deliver billions in savings to New Yorkers 

There is a growing body of research showing the projected benefits of the Clean Air Initiative to New York communities. Just this week, a new report was released laying out the cost-saving and community benefits this program could provide. It finds that the Clean Air Initiative will deliver $270 a year in energy rebates for New Yorkers while turbocharging a range of efficiency and clean energy programs that further drive down costs. For example, the Clean Air Initiative would help families upgrade to heat pumps and rooftop solar, saving them up to $3,300 annually. 

Recent analysis from Greenline Insights finds that over its first decade, the Clean Air Initiative, as previously designed by DEC and NYSERDA, would generate $6.9 billion in cumulative net savings for households earning $200,000 or less — roughly $1,060 per household. Nearly 85% of New Yorkers fall within this income range. The report also finds that the program would result in $47.5 billion in statewide economic growth. 

Both reports build on a strong, established body of research, from both independent sources and from the state itself, which demonstrates that the Clean Air Initiative would ensure the vast majority of New Yorkers break even or see net savings as a result of the program — a stark contrast from NYSERDA’s most recent memo.  

How the Clean Air Initiative can lower costs 

By making polluters pay for their emissions, the Clean Air Initiative is set to raise significant funds that would be invested in direct rebates on bills, clean energy upgrades and energy efficiency programs that deliver tangible economic and health benefits to households. Many such programs exist today and could be substantially scaled and expanded by the Clean Air Initiative, helping more New Yorkers realize these benefits.  

For instance, programs like Empower+ and the Green Small Buildings Program provide energy efficiency and clean energy upgrades. One Bronx resident proudly reported that, thanks to free upgrades like weatherization and insulation through Empower+, their heating bills have been cut in half. The Clean Air Initiative would enable hundreds of thousands more New Yorkers to experience the same comfort and bill saving benefits provided through programs like Empower+ and others. 

New Yorkers are paying the price for climate inaction 

Beyond economic gains, climate action would deliver profound public health benefits across the state. Analysis from DEC and NYSERDA finds that by slashing health-harming pollution, the Clean Air Initiative would deliver up to $13 billion in annual health benefits by 2035 and prevent over 1,000 deaths and 137,000 emergency room visits from asthma.  

The New York State Climate Action Council determined that the cost of inaction exceeds the cost of CLCPA implementation by $115 billion. Stalling implementation of the Clean Air Initiative means fewer homes upgraded, fewer bills reduced and fewer households insulated from rising energy costs.  

State leadership matters more than ever — and other states are moving forward 

With the federal government aggressively rolling back common-sense public health and pollution protections and attempting to overturn the scientific foundation for regulating greenhouse gas emissions, states are our front line for climate and economic policy. New York must not stall nor back down.  

Leaders around the country are strengthening or recommitting to cap-and-invest programs to cut pollution and costs. From Virginia rejoining RGGI, to California extending its program through 2045, to Washington voters defending their program at the ballot box, there is no shortage of examples on how well-designed programs are effective and popular.  

By standing firm on the CLCPA and implementing a thoughtfully designed cap-and-invest program through the Clean Air Initiative, New York can cut energy bills and generate billions in economic activity — all while cutting pollution and delivering cleaner air for the Empire state. 

New Yorkers: Tell your state leaders to stand firm on climate!