Five years into New York’s climate law, the state needs a bold cap-and-invest program to bring emissions goals into reach

This month marks five years since New York State’s Climate Leadership and Community Protection Act (CLCPA) was signed into law. At the time of its enactment in 2019, the groundbreaking climate law set New York apart as a national and global climate leader.

Indeed, action in line with the CLCPA’s emissions and environmental justice requirements would be transformative — promising a safer future, cleaner air and good-paying jobs in the growing clean energy economy for New Yorkers today and for future generations.

Five years in, however, New York does not yet have the rules in place to deliver on the climate law and all the promise it holds for New Yorkers.

The good news is that solutions are at our fingertips. Governor Hochul’s administration is developing regulations to implement the CLCPA, including a major climate program known as cap-and-invest. This program could be momentous in getting New York on track to its climate targets and investing billions of dollars annually in communities around the state.

As we cross this five-year milestone, there’s no time to waste. The Hochul administration must move forward expeditiously with a strong program designed to meet the climate ambition and equity requirements of the CLCPA. New York needs nation-leading cap-and-invest rules that deliver on the climate, health and economic promises of its nation-leading climate law.

On July 30, 2024, EDF and 30+ partner organizations signed a joint statement urging the state to implement an ambitious and strong program as soon as possible.

Five years in, where are we on implementing New York’s climate law?

The CLCPA set critical, science-based climate targets — requiring that, by 2030, New York cut statewide greenhouse gas emissions by 40% from 1990 levels and deliver 70% of electricity from renewable energy sources.

Though some progress has been made over the last five years, the reality is that New York has missed several of the climate law’s deadlines and is not currently on track to achieve its emissions goals. The deadline for the implementation of climate regulations to meet its emissions targets — January 1, 2024 — has come and gone. Earlier this month, New York agencies reported that the state is off track to achieve its statutory renewable energy target. As of 2021, the state had cut emissions by only 10% since 1990, and even projections for 2030, accounting for policies in place today, show New York has a significant gap to close to reach its emissions targets.

The evidence is clear, as is the climate law: the state needs to put strong regulations in place to meet its emissions targets.

Delivering regulations to implement the climate law

Luckily, there are regulations in the works that can help get New York on track. Following the passage of the CLCPA, the state completed a multi-year stakeholder and public input process to develop its climate plan, known as the Scoping Plan.

Included among the Scoping Plan’s recommendations was the creation of an economy-wide New York Cap-and-Invest (NYCI) program, which Gov. Hochul directed the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) to move forward with in early 2023 as a cornerstone of implementing the CLCPA. Since then, the agencies have conducted robust stakeholder outreach on the program design and released preliminary details about the program in late 2023.

But the draft cap-and-invest rule — originally slated for release this summer, to be finalized later this year — is still pending.

Now only six years away from the first major emissions target of the law, New York urgently needs regulations in place to deliver on the CLCPA and get the state back on track as a climate leader.

A bold cap-and-invest program can help New York get back on track as a climate leader

The Scoping Plan recommended cap-and-invest because the program would set an enforceable, declining cap on climate pollution in line with New York’s climate targets. Put differently, a strong program would act as an emissions backstop — ensuring that collective efforts to limit pollution add up to the statutory targets.

At the same time, it would raise billions of dollars in revenue annually that can be invested into a variety of projects that benefit New York communities — accelerating the transition to clean energy, reducing air pollution, protecting communities from natural disasters, ensuring affordable energy and much more, all with a focus on delivering these benefits, first and foremost, in disadvantaged communities.

Early analysis from state agencies suggests New York’s cap-and-invest program could raise at least $5 billion per year in 2025 and 2026, increasing to over $10 billion per year starting in 2027, with at least 35% — with a goal of 40% — required to benefit disadvantaged communities. Investing these resources into clean energy solutions presents an enormous opportunity to accelerate the state’s climate progress, expand good-paying jobs in the clean energy economy — already employing over 170,000 New Yorkers — and lower energy costs.

The state’s analysis also shows that by driving down toxic air pollution, health benefits for New Yorkers could be enormous. Each year, the program is anticipated to reduce hundreds of heart attacks, avoid 70,000 lost workdays and avoid 1,800 emergency room visits for asthma.

What does a bold, nation-leading cap-and-invest program look like?

Cap-and-invest holds enormous promise as a climate solution capable of delivering climate, public health and economic benefits. It is critical, however, that the final program drives progress in line with the requirements of the CLCPA, and early program details suggest some room for improvement.

In response to preliminary details shared by DEC and NYSERDA, EDF has submitted detailed comments to New York state agencies on what a strong program should look like. Here are some of the most essential features:

• First, the “cap” in the cap-and-invest program must be ambitious enough to achieve reductions in line with New York’s climate targets for covered sources: cutting emissions by 40% by the end of this decade and 85% by 2050. These targets are not merely aspirational — they are binding in state law and grounded in what science shows is needed to curb the worst climate impacts. However, the modeling that agencies presented in January suggested a more lenient cap that would overshoot our climate goals. New York leaders should not aim to miss the statutory targets meant to secure a safer future for our communities.
• Second, the program should cover all major emitting sources of climate pollution where it’s feasible and practical to measure emissions — including power plants. Doing so would give the state more tools to ensure a transition to a clean grid, support economy-wide emissions targets and further mitigate pollution in disadvantaged communities. Notably, covering these sources could also lower the overall cost of cutting emissions in line with New York’s climate goals.
• Third, cap-and-invest must deliver tangible environmental justice benefits to New York’s most disadvantaged communities — which starts with meeting or exceeding the environmental justice requirements in New York’s climate law. Low-income communities and communities of color bear the brunt of health harms from toxic air pollution because polluting facilities are more likely to be unjustly sited near them. Cap-and-invest needs to recognize this reality and provide guardrails that protect disadvantaged communities from local air pollution, such as capping pollution for specific facilities that contribute to these burdens. And, critically, the administration should provide plenty of opportunities for communities themselves to weigh in on the program.

In short, it’s essential that Governor Hochul and agency leaders make this program ambitious and equitable, living up to what New York’s landmark climate law requires.

While some may say that pursuing an ambitious and equitable program would be too costly, that narrow argument misses the much larger picture of costs that New Yorkers are already experiencing and the health and economic benefits that would be achieved via implementation of a strong program. It is expensive to rebuild homes, roads and bridges after floods; to treat asthma and other illnesses aggravated by toxic pollution; and to miss days of school and work because of severe storms. In fact, estimates show the cost of inaction on climate change exceeds the cost of achieving New York’s 2030 and 2050 climate targets by at least $115 billion.

What’s more, a strong cap-and-invest program will make it cheaper and easier to electrify homes, vehicles, businesses, and schools – meaning, it will help get New Yorkers off the fossil fuel price roller coaster sooner.

Five years after the momentous signing of New York’s nation-leading climate law, it is time to deliver on its promises with a nation-leading cap-and-invest program. By implementing a strong and equitable NYCI program, Governor Hochul can lead on climate and deliver a vibrant future for New Yorkers.

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