New York’s clean energy law could cost residents more than expected.
A leaked memo from the New York State Energy Research and Development Authority to Gov. Kathy Hochul’s office on the estimated financial impacts of the state’s greenhouse gas reduction law shows average households could face thousands of dollars of extra costs a year.
First reported by City and State, the memo from NYSERDA President Doreen Harris to Director of State Operations Jackie Bray dated Thursday says by 2031 – absent any changes – the impact of the Climate Leadership & Community Protection Act could cost upstate oil and natural gas households in excess of $4,000 per year.
The program, in part, aims to reduce greenhouse gas emissions 40% by 2030 and 85% by 2050, compared to 1990 levels. New York is working toward a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030. Proceeds from the program would be invested in efforts that help reduce emissions while intending to keep New York competitive.
The memo says households that are unable to install lower emissions technologies would be especially burdened.
Environmental Advocates NY says the memo “inaccurately” reflects costs of proposed cap-and-invest policy. Executive Director Vanessa Fajans-Turner called the figures a “political tactic meant to scare legislators into giving her [Gov. Hochul] a way out of obeying the law.
“I think, so, the nation is in a different place, and it is all the more endangered because of delays in implementation,” Fajans-Turner said. “Had we started implementing and start[ed] on renewable projects when the law was passed, a lot would have been in progress by the time Trump was elected president in 2024 if that is one of the arguments the governor is making.”
Hochul, a Democrat, made that argument when talking with reporters Thursday. She said the world has changed dramatically since the law was implemented in 2019.
“Just talk to anybody about the utility bill within the last couple weeks. It is staggering and we cannot just tune out those cries for help from New Yorkers who are just getting crushed under the weight of this,” Hochul said. “So, I, we are, listen, I'm not going to ever, you can ask me as many times as you want between now and the end of the Budget — I'm not going to telegraph what we're talking about in our negotiations, but I think everybody knows that we have a real problem on our hands.”
Last year, an Ulster County Supreme Court judge gave Hochul’s administration until Feb. 6 to issue regulations that would guarantee the state meets emissions targets set out in the law. Behind on meeting those goals, Hochul’s office had planned to appeal the ruling.
State Budget Director Blake Washington said this week the state’s climate laws are well intentioned, hinting that the governor could change rules to adapt to the times.
“Think about some of our green mandates in the state of New York that existed before the governor took office. Some of those things are very aggressive and well intentioned. But you know, when you start to look at the letter of the law, and you if we were to implement those items, and under the framework that was, under the accounting standard and law under the under the benchmarks, the goals that are in law, you would put undue pressure on New Yorkers. You know, average $3,000 upstate downstate, if you own a car and if you heat with home heating oil. These are pressures that are, you know, the governor finds to be unacceptable,” Washington said during a Citizens Budget Commission breakfast on Wednesday.
Meantime, Republicans say the memo reaffirms that the state’s electrification mandates are unrealistic. In an election year in which both major parties are seeking to champion the issue affordability, State Sen. Jake Ashby says Democrats “must give up their emotional attachment” to the state’s energy mandates.
“It's in complete contrast with the state's energy plan. And you know, these are the governor's own people, this is NYSERDA,” Ashby said. “These are Democrat appointed officials who are now coming out and saying, ‘this is unattainable. We have met reality,’ and the law should be repealed tomorrow.”
