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 our climate and volatile natural gas raises prices in New York, now is the moment for the state to step up, not back. Despite this, Governor Hochul has expressed intentions to weaken the state’s climate law, potentially putting billions in benefits for New Yorkers at risk.

Analysis after analysis shows how a strong, well-designed cap-and-invest program — a centerpiece of implementing the law — will cut costs for New York’s working families while cutting climate and air pollution. After years of delay, it’s time for New York to finally move this program forward.

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 cannot afford to delay climate action any further.

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 by a 24-point margin, there is no shortage of examples on how well-designed programs are effective and popular.

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

New York’s Climate Leadership and Community Protection Act’s (CLCPA) remains one of the strongest climate laws in the country, promising to scale clean, affordable energy and position the state as a leader in cutting climate pollution, in opposition to persistent and aggressive federal backsliding. New York is already years behind in implementing this law, and at the precise moment New York should be moving forward, Governor Hochul has proposed changes that would weaken and further delay implementation as part of the state’s budget negotiations. A cap-and-invest program was identified in the state’s Scoping Plan as the most affordable and effective approach to reducing pollution in line with the CLCPA’s targets and raising billions for clean energy and community investments.

The program — which the state previously spent years developing and then shelved — 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, in February, 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 a cap-and-invest program that has never been on the table 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.

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 a well-designed cap-and-invest program, the state can 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 cap-and-invest program for New York communities. In February, a report was released laying out the cost-saving and community benefits this program could provide. It finds that a cap-and-invest program 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, a cap-and-invest program 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, a cap-and-invest program, 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 a thoughtfully designed cap-and-invest program 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 a cap-and-invest program can lower costs

By making polluters pay for their emissions, a cap-and-invest program would raise significant funds for investment 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. A cap-and-invest program 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, a cap-and-invest program 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 program means fewer homes upgraded, fewer bills reduced and fewer households insulated from rising energy costs.

By standing firm on the CLCPA and implementing a thoughtfully designed cap-and-invest program, 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!