Climate Leadership and Community Protection Act (CLCPA)
July 24, 2019 - August 4, 2026
17 posts
The Climate Leadership and Community Protection Act (CLCPA) establishes New York State’s legal framework for reducing greenhouse gas emissions and transitioning to a net-zero carbon economy by 2050. This page covers CBC’s work on economy-wide carbon pricing, cap-and-invest program design, building emissions standards like Local Law 97, renewable energy infrastructure, and the fiscal impact of climate policies on residents and businesses.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
New York State should recalibrate the CLCPA's emission reduction goals to ensure they are ambitious yet attainable.
The State should adopt the emissions accounting used by other states to facilitate participation in broader emissions trading markets.
The State should reset its goals to be ambitious but attainable enough to underpin policies and investments that are affordable and promote economic growth.
The State should implement a well-designed cap-and-invest program that balances emissions reduction with affordability and job growth.
The State should clearly identify the full cost and impact of every proposal and program to all residents, businesses, and the State budget.
The State should publish holistic and comprehensive impact analyses of various proposals to ensure the public understands the real trade-offs involved.
Key Data
In November 2023, the CBC highlighted that the CLCPA establishes specific procurement targets, including 9,000 megawatts of offshore wind by 2035, 6,000 megawatts of distributed solar by 2025, and 3,000 megawatts of energy storage capacity by 2030.
In November 2023, the CBC explained that the CLCPA uses a unique 20-year Global Warming Potential (GWP-20) horizon for emissions accounting, whereas most other systems use a 100-year standard. This difference makes it harder to link New York's carbon market with other states.
In January 2023, the CBC reiterated that the CLCPA mandates New York to reduce greenhouse gas emissions by 40% by 2030 and 85% by 2050 from 1990 levels. Meeting these targets will require difficult choices and tradeoffs for residents and businesses.
In May 2022, the CBC reported that the Climate Action Council's Draft Scoping Plan estimated the total cost of meeting CLCPA goals through 2050 to be approximately $300 billion on a discounted present value basis. The majority of these costs are projected for investments in the building sector and electricity generation.
In September 2020, the CBC pointed out that New York State provides more than $800 million in annual tax exemptions that lower the cost of fossil fuels. These subsidies run counter to the CLCPA's goals by encouraging greenhouse gas emissions.
2040 is the year by which New York State has to reduce its greenhouse gas emissions by 60% to the maximum extent feasible and cost effective, under the newly-amended Climate Leadership and Community Protection Act (CLCPA). The State also changed how it will measure greenhouse gas emissions to align with…
New York State's budget is late for the 7th consecutive year, prompting calls for state leaders to prioritize fiscal responsibility and affordability. Among the proposed policy adjustments is a recommendation to recalibrate the Climate Leadership and Community Protection Act (CLCPA).
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
New York State should recalibrate its climate goals to be more attainable while adopting standard emissions accounting practices used by other states to ensure economic growth and affordability. The state must also conduct comprehensive impact analyses of climate proposals to clearly identify costs and benefits for residents and businesses.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
New York State should recalibrate the CLCPA's emission reduction goals to ensure they are ambitious yet attainable.
The State should adopt the emissions accounting used by other states to facilitate participation in broader emissions trading markets.
The State should reset its goals to be ambitious but attainable enough to underpin policies and investments that are affordable and promote economic growth.
The State should implement a well-designed cap-and-invest program that balances emissions reduction with affordability and job growth.
The State should clearly identify the full cost and impact of every proposal and program to all residents, businesses, and the State budget.
The State should publish holistic and comprehensive impact analyses of various proposals to ensure the public understands the real trade-offs involved.
New York's proposed Cap-and-Invest program aims to help achieve the Climate Leadership and Community Protection Act's goal of reducing greenhouse gas emissions by 85 percent by 2050. To ensure the program is cost-effective and successful, the state should prioritize broad sectoral coverage, allow for linkage with other programs, and maintain flexibility in compliance while ensuring transparent revenue management.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
The State should allow and pursue linkage with other cap-and-invest programs to enhance cost-effectiveness by providing a larger pool of emissions reduction opportunities.
New York should keep sectoral coverage as broad as possible, limiting exemptions to sectors that are exceedingly difficult or expensive to regulate.
The State should maintain flexibility in compliance through trading, banking, and verifiable offsets to ensure the program behaves as a true market.
New York should allocate revenue on-budget, segregating it for uses that promote cost-effective emissions reduction to ensure transparency and accountability.
The State should regularly monitor, publicly report, and evaluate program data and modify the program based on evidence to improve accountability and inform necessary programmatic modifications.
New York should align the program with other CLCPA-related regulations to minimize overlapping regulatory costs and improve overall policy effectiveness.
The State should finalize clear and comprehensive rules with adequate time for businesses to prepare to provide the predictability needed for compliance strategies.
Key Data
$112,790 Million
— Cumulative auction revenue for the European Union's emissions trading system since 2005.
$38,934 Million
— Cumulative auction revenue for California's cap-and-trade program since 2013.
$6,749 Million
— Cumulative auction revenue for the Regional Greenhouse Gas Initiative (RGGI) since 2009.
$91.23
— Most recent allowance price at auction for the European Union's system as of December 2022.
$63.03
— Most recent allowance price at auction for Washington's cap-and-invest program as of August 2023.
$35.20
— Most recent allowance price at auction for California and Quebec's cap-and-invest programs as of August 2023.
New York City's Local Law 97 aims to reduce building emissions, but meeting the 2030 compliance requirements will likely require significant upgrades for 15,000 buildings at a cost of up to $15 billion. To facilitate this transition, policymakers should clarify eligibility for emissions-limit adjustments, allow portfolio-wide carbon trading, and expand the use of renewable energy credits.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
Additional rules should more clearly define the eligibility criteria for emissions-limit adjustments based on needs, including adjustments for high-density occupancy buildings and buildings facing financial hardship.
Policymakers should allow carbon trading within an owner’s portfolio to permit building owners to trade emissions credits across their buildings.
The City should expand allowable Renewable Energy Credits (RECs) to include offshore wind and a phased-down portion of Tier 2 RECs.
Rules for the 2030-34 compliance period should be released well in advance of 2030 to ensure sufficient time to plan for and make investments for compliance.
Key Data
15,000
— Number of buildings currently estimated to be out of compliance with their 2030 emissions limit.
$15 billion
— Estimated cost of building upgrades needed to meet the requirements of the second compliance period.
New York aims to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050, but the Climate Action Council's Final Scoping Plan lacks the necessary cost-benefit analysis to effectively prioritize strategies. Policymakers must evaluate the economic impacts of these proposals on utility rates, state competitiveness, and government budgets to ensure the most cost-effective path to meeting these climate goals.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
Policymakers should calculate the cost-effectiveness of each climate strategy, determine the probability of each strategy’s success, and identify the incidence of costs and benefits on stakeholder groups and geographies.
The State must identify, publicize, and consider the impacts of various strategies on residential and business utility rates, state economic competitiveness, and the State’s operating and capital budgets.
The Legislature and regulators should prioritize mitigation strategies that generate the greatest emissions reduction at the lowest cost to New Yorkers.
The State should consider regional approaches when implementing carbon pricing policies to ensure they are most effective.
Key Data
40 percent
— Target for greenhouse gas emissions reduction by 2030 from 1990 levels.
85 percent
— Target for greenhouse gas emissions reduction by 2050 from 1990 levels.
New York State's climate goals aim to reduce greenhouse gas emissions by 85 percent by 2050, while New York City's Local Law 97 targets an 80 percent reduction for large buildings by the same year. Achieving these ambitious targets requires cost-effective implementation strategies that balance environmental goals with economic competitiveness and utility affordability.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
The Final Scoping Plan should calculate and identify the cost-effectiveness of each mitigation strategy to provide the information needed for prioritization.
Policymakers should identify specific mitigation strategies and incentives, such as tax credits or subsidies, to encourage businesses and households to adopt low-emission technologies.
The state should determine the probabilities associated with different mitigation strategies because cost-effectiveness alone is not sufficient for prioritization.
The Final Scoping Plan should disaggregate the financial impacts of each strategy on businesses and households to help prioritize strategies that maximize equity and minimize negative economic impacts.
Policymakers should identify the distribution of benefits and costs across stakeholder groups, industries, and geography to understand how costs might fall heavily on specific sectors.
The city should adjust credits appropriately for lack of renewable energy availability to encourage electrification if the greening of the grid is slower than established by the CLCPA.
The city should expand allowable Renewable Energy Credits (RECs) to offshore wind and a phased-down portion of Tier 2 RECs to provide buildings with flexibility.
The city should specify, expand, and continue emission limit adjustments for density and specific uses to alleviate counterproductive disincentives.
The city should allow carbon trading within an owner’s portfolio to allow owners of multiple buildings to target the most cost-effective emissions reductions.
The city should adjust limits and penalties appropriately to the post-pandemic economy to account for permanent shifts in work patterns or financial strain.
Key Data
40 percent
— Statewide greenhouse gas reduction goal by 2030.
85 percent
— Statewide greenhouse gas reduction goal by 2050.
40 percent
— Greenhouse gas reduction goal for large buildings in New York City by 2030.
80 percent
— Greenhouse gas reduction goal for large buildings in New York City by 2050.
New York State's plan to reduce greenhouse gas emissions by 85 percent by 2050 requires a more detailed strategy that clearly outlines the cost-effectiveness and economic impacts of proposed mitigation measures. To achieve these climate goals efficiently, the state must prioritize market-based incentives, leverage regional energy resources, and focus on infrastructure that supports transit and renewable energy distribution.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
The Final Scoping Plan should calculate and identify the cost effectiveness of each mitigation strategy to provide a basis for prioritization.
Policymakers should identify specific mitigation strategies and incentives, such as tax credits or subsidies, to encourage businesses and households to adopt low-emission technologies.
The state should determine the probabilities associated with different mitigation strategies because cost-effectiveness alone is not sufficient for prioritization.
The Final Scoping Plan should specify the incremental costs of achieving the 2050 goal to support public discussion on the economic impact of meeting environmental targets.
The state should disaggregate the financial impacts of each strategy on businesses and households to help prioritize strategies that maximize equity and minimize negative economic impacts.
The state should utilize market incentives as much as possible, such as a fee system or a cap-and-trade system, to incentivize low-emission choices without prescriptive regulation.
The state should retain the low carbon benefits of nuclear energy as a key component of the decarbonization path.
The state should maximize the distribution of renewable energy throughout the state by making upstate energy supplies available to downstate businesses and households.
The state should promote transportation strategies that build on existing infrastructure, focusing on the wider adoption of transit and transit-oriented development.
Key Data
85 percent
— The goal for statewide greenhouse gas emission reductions from 1990 levels by 2050.
$300 billion
— The estimated total costs through 2050 on a discounted present value basis for the climate scenarios.
2030 and 2050
— The target years for which the initial climate recommendation was discarded because it fell short of goals.
New York City's Local Law 97 aims to significantly reduce greenhouse gas emissions from large buildings, but current implementation challenges threaten to make compliance difficult and costly for owners. To ensure these climate goals are met cost-effectively, the city should adjust compliance credits, expand renewable energy options, and refine emission limits to account for economic realities and grid limitations.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
If the greening of the grid is slower than established by the New York State Climate Leadership and Community Protection Act, the law’s credits for beneficial electrification should be calculated accounting for those missed goals.
Provide buildings with flexibility while the New York City electric grid remains mostly fossil fuel-powered by allowing buildings to purchase unlimited amounts of RECs associated with downstate offshore wind projects and limited amounts of existing RECs from existing generation.
Alleviate counterproductive disincentives to density and certain economically vital uses by clearly adjusting and extending adjustments past the first compliance period.
Set an accelerated, public timeline for rulemaking that includes critical rules governing limit adjustments and penalty mitigation and universal criteria so building owners can determine eligibility and adjusted requirements as-of-right, rather than through individual petitions.
Allow owners of multiple buildings to target the most cost-effective emissions reductions across their assets by establishing a carbon trading scheme that allows credits to be traded within a portfolio.
Study whether LL97 emissions limits or alternative compliance paths in the first compliance period should be modified due to permanent shifts in work patterns, delays in retrofit projects, or financial strain, and adjust limits as necessary to maintain citywide emissions targets.
Key Data
$268
— Annual fine per metric ton for buildings with emissions above the limit.
40 percent
— Target reduction in emissions from large buildings by 2030.
80 percent
— Target reduction in emissions from large buildings by 2050.
one in four
— Proportion of affected buildings that do not comply with 2024 levels.
three in four
— Proportion of affected buildings that will not comply when 2030 limits take effect.
20 percent
— Reduction in emissions the median building will need to achieve by 2024.
New York State's transportation sector is the largest source of carbon dioxide emissions, accounting for 47 percent of the total, which complicates efforts to meet the Climate Leadership and Community Protection Act's ambitious greenhouse gas reduction targets. To address this, policymakers should consider strategies like congestion pricing, carbon fees, and tax policy adjustments to curb rising emissions from aviation and personal vehicle use.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
Implementing congestion pricing in Manhattan should reduce emissions.
State leaders should consider how transportation emission reductions can be encouraged when making tax policy, state spending, and local aid decisions.
The State should consider carbon fees to build the cost of carbon emissions in the price of fossil fuel heavy transport options like gas cars and aviation with the intent to reduce their use.
Key Data
47 percent
— The transportation sector's share of New York State's total annual carbon dioxide emissions in 2018.
22 MMT
— The amount of aviation-related greenhouse gas emissions in 2018, up from 2 MMT in 1990.
21 percent
— The growth in SUV ownership in New York City between 2016 and 2020.
40 percent
— The goal to reduce statewide greenhouse gas emissions from 1990 levels by 2030 under the CLCPA.
New York City's Local Law 97 aims to significantly reduce greenhouse gas emissions from large buildings, but its implementation faces challenges due to the city's fossil-fuel-dependent grid and the need for clearer, more flexible compliance pathways. To ensure these ambitious climate goals are met cost-effectively, the city must align regulatory incentives with the state's broader renewable energy targets and provide building owners with practical, transparent guidance.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
Adjust credits appropriately for lack of renewable energy availability to encourage electrification: Mitigate penalties if the greening of the grid is slower than planned, which will incentivize building owners to accelerate the switch to electric building systems.
Expand allowable RECs to offshore wind and a phased-down portion of Tier 2 RECs: Provide buildings with flexibility while the New York City electric grid remains fossil fuel-powered by allowing buildings to purchase unlimited amounts of Renewable Energy Certificates (RECs) associated with downstate offshore wind projects and limited amounts of existing RECs from existing generation.
Specify, expand and continue emission limit adjustments for density and specific uses: Alleviate counterproductive disincentives to density and certain economically vital uses by clearly specifying parameters for the law’s adjustments for high density and energy-intensive uses.
Specify and extend need-based building-level adjustments: Set an accelerated, public timeline for rulemaking that includes critical rules governing limit adjustments and penalty mitigation and universal criteria so building owners can determine eligibility and adjusted requirements as-of-right, rather than through individual petitions.
Allow carbon trading within an owner’s portfolio: Allow owners of multiple buildings to target the most cost-effective emissions reductions across their assets by establishing a carbon trading scheme that allows credits to be traded within a portfolio.
Adjust limits and penalties appropriately to the post-pandemic economy: Study whether LL97 emissions limits or alternative compliance paths in the first compliance period should be modified due to permanent shifts in work patterns, delays in retrofit projects or financial strain.
Key Data
24%
— Percentage of affected buildings that were not compliant with 2024 limits.
75%
— Percentage of buildings that will be noncompliant with 2030 limits.
$218 Million
— Total annual penalties for all covered buildings in 2030.
$20 Billion
— Estimated total city-wide cost of reaching emissions limits solely through energy efficiency retrofits.
68%
— Share of citywide emissions that come from buildings.
70%
— Share of electricity from renewable sources by 2030 mandated by the Climate Leadership and Community Protection Act.
New York State must align its fiscal policies and tax incentives with the Climate Leadership and Community Protection Act to effectively transition away from fossil fuels and achieve economy-wide carbon neutrality by 2050. By eliminating tax exemptions for fossil fuels and converting government infrastructure to renewable energy, the state could save over $800 million annually while accelerating the shift to a clean energy future.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
New York should limit its sales tax exemptions on residential energy, which currently apply to fossil fuels, to zero-emission fuels and renewable energy sources.
The state could tailor existing tax incentives to incorporate renewable energy, such as excluding heating systems that rely on fossil fuels from economic investment tax credits.
New York should transition buildings with aging heating systems away from fossil fuels where cost-effective.
The state should convert the government fleet to electric vehicles and build charging infrastructure to accelerate the transition to clean transportation and lower maintenance costs.
Key Data
$800 million
— Potential annual savings for the state from adjusting tax policies to align with environmental goals.
$200 million
— Amount spent by New York on utilities, such as heating and cooling, in fiscal year 2019.
7,000
— Number of vehicles in the government fleet that could be converted to electric.
New York State's current tax and spending policies often conflict with the Climate Leadership and Community Protection Act's goals, necessitating a realignment of fiscal priorities to support a clean energy transition. By eliminating tax exemptions for fossil fuels and redirecting state aid toward renewable energy infrastructure and zero-emission vehicles, the state can better incentivize the shift away from carbon-intensive practices.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
The State could limit the residential energy sales tax exemption only to zero emission fuels and renewable energy sources and target benefits to sources that support CLCPA goals.
The State could lower, or gradually eliminate, the sales tax exemptions on fossil fuel-based residential energy sources to encourage the adoption of cleaner alternatives.
To avoid creating economic hardship, the State could provide financial support to low-income households to enable them to afford switching to clean heating sources.
The State could consider eliminating exemptions for fossil-fuel based energy used for non-residential purposes, such as research and development.
The State could eliminate the sales tax exemption on the cost of gasoline that exceeds $2 per gallon, which would increase the price at the pump and reduce consumption.
The State could explore tailoring tax credit programs to create incentives to incorporate renewable energy into program projects, such as excluding heating systems that rely on fossil fuels.
When replacing any aging heating systems in existing facilities, the State could transition public building facilities away from fossil fuels wherever cost-effective and feasible.
The State could accelerate the transition to clean fuel vehicles by purchasing electric vehicles and building vehicle charging infrastructure.
The State could consider not reimbursing the cost of installing fossil fuel dependent building infrastructure or vehicles when providing economic development grants.
The State could use school aid to convert schools to renewable energy sources and incentivize school districts to purchase zero-emission school buses.
Key Data
$800 million
— Annual tax exemptions provided by New York State that reduce the cost of consuming fossil fuels, thereby encouraging production of GHG emissions.
$85 million
— Estimated foregone State revenue from the sales tax exemption on the cost of gasoline that exceeds $2 per gallon.
$200 million
— Amount spent by the State on utilities for public buildings in fiscal year 2019.
$1.8 billion
— Annual amount the State provides in economic development grants to companies to subsidize expansion or relocation to New York.
$5 billion
— Portion of the State’s budget allocated for school building aid and transportation aid.
$3,207 million
— Current program costs for School Building Aid in fiscal year 2020.
New York State's Climate Leadership and Community Protection Act mandates a net-zero carbon economy by 2050, including a 70% renewable energy target by 2030 and full decarbonization of the electric sector by 2040. To meet these goals alongside New York City's building emission reduction requirements, significant infrastructure investments in transmission, distribution, and energy storage are necessary to manage increased electrical demand.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
Continue to advance the energy efficiency of buildings to lower electrical demand.
Rapidly deploy significantly more renewable power, while we protect existing carbon-free generation such as hydro power and bring planned renewable resources online.
Modernize, optimize, and build-out the transmission system so that renewable energy quickly reaches the areas of heaviest use.
Upgrade local distribution networks to ensure customers receive reliable power.
Enable widespread use of energy storage combined with a focus on energy efficiency to ensure reliability, control costs, and manage demand.
Key Data
70%
— New York State renewable energy goal by 2030.
40%
— New York City building emissions reduction goal for buildings over 25,000 square feet by 2030.
80%
— New York City building emissions reduction goal by 2050 from 2005 levels.
2050
— Year by which New York State must have a net-zero carbon economy.
2040
— Year by which the electric sector must be decarbonized.
25,000
— Square footage threshold for New York City building emissions reduction legislation.
New York's Climate Leadership and Community Protection Act sets ambitious goals to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050, but achieving these targets cost-effectively requires a more flexible, market-based approach than the current prescriptive strategy. The state should prioritize economy-wide carbon pricing, maintain optionality in energy technologies, and foster regional partnerships to secure the greatest emissions reductions at the lowest cost.
Recommendations related to Climate Leadership and Community Protection Act (CLCPA)
New York should establish an economy-wide carbon pricing system to deliver effective price signals to energy consumers.
New York should look beyond its borders for low-cost, low-emission energy supplies and to cut GHG emissions.
The state should retain the use of nuclear energy to continue to obtain the benefits of carbon avoidance.
Regulatory and legal actions should not hamper use of resources that can continue to reduce GHG emission and provide reliable energy solutions, such as natural gas.
Greater emphasis should be placed on one of the areas that has made New York a low GHG-emitting state: energy-efficient public transportation.
Policymakers should allow price signals to determine how much wind capacity, distributed solar, utility-scale solar, and hydropower is built rather than mandating specific technologies.
Key Data
40 percent
— New York's goal to reduce GHG emissions by 2030 from 1990 levels.
85 percent
— New York's goal to reduce GHG emissions by 2050 from 1990 levels.
$2.3 billion
— Annual increase in electricity costs for New Yorkers if the renewable target is met entirely with offshore wind.
94,000 Gwh
— Additional renewable energy needed by 2040 to meet decarbonization goals.
185 trillion
— British thermal units (TBtu) increase in statewide energy efficiency by 2025.
70 percent
— Share of electric power to be generated by renewable sources by 2030.
The Climate Leadership and Community Protection Act establishes ambitious targets for New York, including reducing greenhouse gas emissions to 60 percent of 1990 levels by 2030 and sourcing 70 percent of electricity from renewables. Achieving these goals will require significant changes, particularly in the transportation sector, while managing the potential for increased electricity costs for residents.
Key Data
8.5 percent
— Total GHG emissions in 2015 were lower than 1990 levels.
28 percent
— Current portion of New York’s electricity derived from renewable sources.
$103
— Average monthly residential electric bill in New York compared to the national average of $112.
60 percent
— Goal for reducing GHG emissions from 1990 levels by 2030.
9 GW
— Goal for offshore wind electric generation by 2035.
6 GW
— Goal for distributed photovoltaic solar generation by 2025.
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