New York’s energy transition involves the state and city’s efforts to shift away from fossil fuels and meet ambitious greenhouse gas reduction goals through new regulations, infrastructure investments, and market-based programs. This page covers CBC’s work on the Climate Leadership and Community Protection Act, New York’s Cap-and-Invest program, Local Law 97 building emissions standards, renewable energy procurement, and the fiscal impact of climate policies.
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..
State leaders should ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
Allow and pursue linkage with other cap-and-invest programs to enhance cost-effectiveness by providing a larger pool of emissions reduction opportunities.
Keep sectoral coverage as broad as possible, limiting exemptions to sectors that are exceedingly difficult or expensive to regulate.
Maintain flexibility in compliance through trading, banking, and verifiable offsets to ensure the program behaves as a true market.
Allocate revenue on-budget, segregating it for uses that promote cost-effective emissions reduction to ensure transparency and accountability.
Regularly monitor, publicly report, and evaluate program data to inform necessary programmatic modifications based on evidence.
Align the program with other CLCPA-related regulations to minimize overlapping regulatory costs and improve overall policy effectiveness.
Finalize clear and comprehensive rules with adequate time for businesses to prepare to facilitate a smooth carbon market transition.
Key Data
In March 2025, the CBC highlighted that New York State's budget proposals planned to spend $1 billion on loosely defined climate projects despite not yet having spent $2 billion of environmental bond act dollars.
A November 2023 report noted that New York's Climate Leadership and Community Protection Act (CLCPA) mandates a 40% reduction in greenhouse gas emissions by 2030 and an 85% reduction by 2050, relative to 1990 levels.
In a November 2021 policy brief, the CBC reported that New York's transportation sector generated 83.3 million metric tons (MMT) of CO2, representing 47% of the state's total emissions in 2018.
An August 2021 study found that 24% of covered buildings exceeded 2024 emissions limits, a figure projected to rise to 75% by 2030, potentially resulting in $218 million in annual penalties.
In September 2020, the CBC identified that New York State provides more than $800 million in annual tax exemptions that lower the cost of consuming fossil fuels, thereby indirectly encouraging greenhouse gas emissions.
New York State faces significant fiscal and economic challenges, including high taxes, outmigration, and the need for infrastructure improvements. To address these issues, the state must prioritize cost-effective investments in the energy transition and other critical areas while managing its budget more effectively.
Recommendations related to Energy Transition
State leaders should ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
New York's Draft State Energy Plan lacks the necessary detail and transparency regarding fiscal and regulatory actions, cost-effectiveness, and economic impacts to effectively guide the state's energy transition. The plan requires significant revisions to provide realistic estimates, account for recent federal policy changes, and ensure that emissions goals remain ambitious yet achievable without compromising economic competitiveness.
Recommendations related to Energy Transition
Update the analyses to account for recent federal changes.
Identify specific financial and regulatory actions that would drive the energy transition for each scenario.
Quantify the impact on energy costs for households at all income levels, and any impacts of the transition on the cost of goods and services.
Propose to modify the States emissions reduction goals to be ambitious, but achievable, to help design programs.
Evaluate existing State programs to facilitate comparison and identify the most cost-effective tools.
Key Data
30 percent
— The expiration of Production and Investment Tax Credits for clean energy, which can cover more than 30 percent of project costs, will make future projects significantly more expensive.
9 GW
— The SEP assumes the State will reach its 9 GW offshore wind target by 2035, which had already been unlikely, and is even more questionable given recent changes in federal permitting.
$146 per MWh
— The contractual strike price for offshore wind is $146 per MWh and $155 per MWh, compared to an assumed cost of $125 per MWh in 2025 in the Draft SEP.
$155 per MWh
— The contractual strike price for offshore wind is $146 per MWh and $155 per MWh, compared to an assumed cost of $125 per MWh in 2025 in the Draft SEP.
$125 per MWh
— The contractual strike price for offshore wind is $146 per MWh and $155 per MWh, compared to an assumed cost of $125 per MWh in 2025 in the Draft SEP.
five percent
— The Draft SEP quantifies its impact only on jobs in the energy sector, which comprise just five percent of the State’s jobs.
New York City requires capital investment that is smart and resilient to support future economic growth. The next mayor must prioritize essential climate resilience and a cost-effective energy transition that balances environmental goals with economic affordability.
Recommendations related to Energy Transition
The next mayor should invest in essential climate resilience and a cost-effective energy transition that balances affordability, the environment, and the economy.
New York State's proposed budget includes $1 billion for loosely defined climate projects, even though $2 billion from the environmental bond act remains unspent. To improve fiscal responsibility, the state should reject this new spending program and instead focus on utilizing existing capital funds while developing a comprehensive climate policy.
Recommendations related to Energy Transition
The State should reject the $1 billion "Sustainable Future Program" to focus on spending existing capital funding and implementing a comprehensive climate policy.
Key Data
$1 billion
— Proposed spending on loosely defined climate projects.
$2 billion
— Unspent environmental bond act dollars that remain available.
85% is the amount New York State must reduce greenhouse gas emissions by 2050. The State’s Cap-and-Invest program is a key strategy to cap and reduce emissions, auction emission rights, and invest proceeds in energy transition. Doreen Harris, President and CEO of NYS Energy Research and Development Authority, and Basil…
Doreen M. Harris is the president and CEO of the New York State Energy Research and Development Authority (NYSERDA), a public benefit corporation that advances innovative energy solutions to improve New York State’s economy and environment. Basil Seggos is the New York State Department of Environmental Conservation (DEC) Commissioner. His…
New York's proposed Cap-and-Invest program aims to reduce greenhouse gas emissions by 85 percent by 2050, but its success depends on a well-designed framework that balances environmental goals with economic competitiveness. To ensure cost-effectiveness, the state should prioritize broad sectoral coverage, allow for linkage with other trading programs, and maintain flexibility in compliance mechanisms while ensuring transparent revenue management.
Recommendations related to Energy Transition
Allow and pursue linkage with other cap-and-invest programs to enhance cost-effectiveness by providing a larger pool of emissions reduction opportunities.
Keep sectoral coverage as broad as possible, limiting exemptions to sectors that are exceedingly difficult or expensive to regulate.
Maintain flexibility in compliance through trading, banking, and verifiable offsets to ensure the program behaves as a true market.
Allocate revenue on-budget, segregating it for uses that promote cost-effective emissions reduction to ensure transparency and accountability.
Regularly monitor, publicly report, and evaluate program data to inform necessary programmatic modifications based on evidence.
Align the program with other CLCPA-related regulations to minimize overlapping regulatory costs and improve overall policy effectiveness.
Finalize clear and comprehensive rules with adequate time for businesses to prepare to facilitate a smooth carbon market transition.
Key Data
$112,790
— Cumulative auction revenue in millions for the European Union's emissions trading system since 2005.
$38,934
— Cumulative auction revenue in millions for California's cap-and-trade system since 2013.
$6,749
— Cumulative auction revenue in millions for the Regional Greenhouse Gas Initiative (RGGI) since 2009.
$5,857
— Cumulative auction revenue in millions for Quebec's cap-and-invest system since 2013.
$1,460
— Cumulative auction revenue in millions for Washington's cap-and-invest system since 2023.
85 percent
— New York's goal to reduce greenhouse gas emissions by 2050 relative to 1990 levels.
Local Law 97 aims to reduce building emissions, but implementation requires clearer rules for compliance adjustments, carbon trading, and expanded renewable energy credits. With 15,000 buildings currently out of compliance for 2030, timely guidance is essential to manage the estimated $15 billion in necessary upgrades.
Recommendations related to Energy Transition
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.
Allow carbon trading within an owner’s portfolio to permit building owners to trade emissions credits across their portfolio of buildings and target emissions-reduction efforts where the cost is lowest.
Expand allowable Renewable Energy Credits (RECs) to 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 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.
4.67 million is the total number of jobs in New York City, just shy of employment pre-pandemic. Though the economy is stable and employment generally strong, challenges remain. The economy is undergoing longer term transformation including remote work, which will affect our labor market and commercial real estate, and the…
New York's ambitious environmental and energy goals require a more rigorous assessment of the costs, benefits, and economic impacts of proposed strategies to ensure investments are prioritized effectively. Before distributing the $4.2 billion from the Environmental Bond Act, the state should conduct a needs assessment to identify the most cost-effective projects for bolstering resiliency and climate adaptation.
Recommendations related to Energy Transition
The State should prioritize cost-effective investments in the energy transition and resiliency.
The State should conduct a holistic assessment of the State’s mitigation and resiliency needs, and more rigorously assess the costs, benefits, and economic impacts of environmental and energy proposals.
Before distributing the Bond Act funds, the State should complete a needs assessment to inform spending on the most urgent, cost-effective projects and programs to bolster resiliency and climate adaptation.
Key Data
$4.2 billion
— Funds from the Environmental Bond Act that the State is set to begin disbursing.
New York aims to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050, but the current climate plan lacks the necessary analysis to weigh the costs and benefits of various proposals. Policymakers must prioritize strategies that achieve these emissions reductions at the lowest cost while carefully evaluating the economic impacts on residents, businesses, and state budgets.
Recommendations related to Energy Transition
The State should calculate the cost-effectiveness of each strategy, determine the probability of each strategy’s success, identify the incidence of costs and benefits on stakeholder groups and geographies, and evaluate those costs’ impacts.
Policymakers should identify, publicize, and consider the impacts of various strategies on residential and business utility rates, both directly and with rebates, disaggregated by economic circumstance, sector, and geography.
The Legislature and regulators should carefully consider the full range of economic impacts and distribution of costs of the many mitigation strategies included in the FSP and prioritize those that generate the greatest emissions reduction at the lowest cost to New Yorkers.
Key Data
40 percent
— New York's goal to reduce greenhouse gas emissions by 2030 from 1990 levels.
85 percent
— New York's goal to reduce greenhouse gas emissions by 2050 from 1990 levels.
New York's proposed economy-wide cap-and-invest strategy is a positive step toward greenhouse gas reduction, but requires careful scrutiny to ensure it facilitates a cost-effective energy transition. The state's upcoming executive budget will be critical in determining the affordability and impact of these environmental initiatives.
Recommendations related to Energy Transition
The State's multi-pronged proposal for greenhouse gas reduction will need further examination to ensure all of its components support a cost-effective energy transition.
Local Law 97 mandates that buildings over 25,000 square feet reduce greenhouse gas emissions by 40 percent by 2030 and 80 percent by 2050 relative to 2005 levels. To ensure successful implementation, the city must provide clearer guidance on compliance paths, emissions adjustments, and renewable energy credits to help building owners make informed investment decisions.
Recommendations related to Energy Transition
The City should specify, expand, and continue emission limit adjustments for density and specific uses to better capture energy intensity and alleviate counterproductive disincentives.
The City should set an accelerated, public timeline for rulemaking regarding need-based building-level adjustments, including universal criteria so owners can determine eligibility as-of-right.
The City should expand allowable renewable energy credits (RECs) to include offshore wind and a phased-down portion of Tier 2 RECs to provide buildings with flexibility while the electric grid remains fossil fuel-powered.
The City should allow carbon trading within an owner’s portfolio to enable owners of multiple buildings to target the most cost-effective emissions reductions across their assets.
Key Data
40 percent
— The goal for reducing greenhouse gas emissions from buildings larger than 25,000 square feet by 2030.
80 percent
— The goal for reducing greenhouse gas emissions from buildings larger than 25,000 square feet by 2050.
25,000 square feet
— The size threshold for buildings subject to Local Law 97 greenhouse gas emissions reduction goals.
2005
— The baseline year used to measure greenhouse gas emissions reduction goals for buildings.
New York State and City have established ambitious goals to reduce greenhouse gas emissions by 80 to 85 percent by 2050 through energy efficiency and renewable energy adoption. Achieving these targets requires cost-effective implementation strategies that balance economic competitiveness, job preservation, and utility affordability for residents and businesses.
Recommendations related to Energy Transition
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 disaggregate the financial impacts of each strategy on businesses and households to help prioritize strategies that maximize equity and minimize negative economic impacts.
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 while the electric grid remains fossil fuel-powered.
Regulators should allow carbon trading within an owner’s portfolio to enable owners of multiple buildings to target the most cost-effective emissions reductions across their assets.
The city should adjust limits and penalties appropriately to the post-pandemic economy by studying whether emissions limits or alternative compliance paths should be modified due to permanent shifts in work patterns or financial strain.
Key Data
40 percent
— Statewide greenhouse gas reduction goal by 2030 under the Climate Leadership and Community Protection Act.
85 percent
— Statewide greenhouse gas reduction goal by 2050 under the Climate Leadership and Community Protection Act.
40 percent
— Greenhouse gas emission reduction goal for large buildings in New York City by 2030 under Local Law 97.
80 percent
— Greenhouse gas emission reduction goal for large buildings in New York City by 2050 under Local Law 97.
New York State's plan to reduce greenhouse gas emissions by 85 percent by 2050 requires a more detailed framework that prioritizes cost-effective strategies and analyzes the economic impact on households and businesses. Achieving these climate goals will cost approximately $300 billion through 2050, necessitating a shift toward market-based incentives, nuclear energy retention, and improved distribution of renewable resources.
Recommendations related to Energy Transition
The State should calculate and identify the cost effectiveness of each mitigation strategy to provide the necessary basis for prioritization.
The State should identify specific mitigation strategies and incentives, such as tax credits or subsidies or peak-period utility pricing, to encourage businesses and households to adopt low emission technologies.
The State should determine the probabilities associated with different mitigation strategies, as cost-effectiveness of strategies alone is not sufficient for prioritization.
The State should specify the incremental costs of achieving the 2050 goal, as incremental costs of mitigation will likely rise after easy implementable solutions have been chosen first.
The State should disaggregate the financial impacts of each strategy on businesses and households to maximize equity and minimize negative economic impacts on jobs.
The State should utilize market incentives as much as possible, such as putting a price on carbon through a fee system or a cap-and-trade system.
The State should appropriately leverage out-of-state low emission resources, such as the import of hydro power from Quebec, which should not be categorically ruled out.
The State should retain the low carbon benefits of nuclear energy, as nuclear power generates carbon free power and should be a key component of the state’s decarbonization path.
The State should maximize the distribution of renewable energy throughout the state by making energy available for businesses and households downstate and in New York City.
The State should promote transportation strategies that build on existing infrastructure, focusing on the wider adoption of transit and transit-oriented development to mitigate the use of private automobiles.
Key Data
85 percent
— Statewide greenhouse gas emissions reduction goal from 1990 levels by 2050.
$300 billion
— Total estimated costs through 2050 on a discounted present value basis for the climate scenarios.
New York City's Local Law 97 mandates significant greenhouse gas emission reductions for large buildings, requiring cuts of 40 percent by 2030 and 80 percent by 2050. To ensure these ambitious climate goals are met cost-effectively, the city should refine compliance rules, adjust emission limits for density, and allow carbon trading within building portfolios.
Recommendations related to Energy Transition
Adjust credits appropriately for lack of renewable energy availability to encourage electrification.
Expand allowable RECs to offshore wind and a portion of Tier 2 RECs to provide buildings with flexibility while the grid remains fossil fuel-powered.
Specify, expand, and continue emission limit adjustments for density and specific uses to alleviate counterproductive disincentives.
Specify and extend need-based building-level adjustments by setting an accelerated, public timeline for rulemaking.
Allow carbon trading within an owner's portfolio to target the most cost-effective emissions reductions across assets.
Adjust limits and penalties appropriately to the post-pandemic economy to account for shifts in work patterns or financial strain.
Key Data
40 percent
— The goal for cutting emissions from large buildings by 2030.
80 percent
— The goal for cutting emissions from large buildings by 2050.
$268
— The maximum annual fine per metric ton for buildings with emissions above the limit.
20 percent
— The reduction in emissions the median building will need to achieve by 2024.
33 percent
— The reduction in emissions the median building will need to achieve by 2030.
24 percent
— The portion of buildings needing to cut emissions by more than half to comply with 2030 standards.
New York City's Local Law 97 mandates greenhouse gas emission limits for buildings exceeding 25,000 square feet to drive environmental compliance. Policy frameworks should prioritize cost-effective investments in emissions reduction over the simple payment of penalties to ensure citywide goals are met efficiently.
Recommendations related to Energy Transition
The City should tailor policy and compliance rules to provide cost-effective compliance paths that promote investments in emissions reduction, rather than simply paying penalties.
Key Data
25,000 square feet
— The size threshold for buildings subject to annual greenhouse gas emission limits under Local Law 97.
New York State's transportation sector is responsible for 47 percent of the state's total carbon dioxide emissions, with these emissions rising 31 percent between 1990 and 2018 despite overall state emissions declining. To meet climate goals, the state is pursuing strategies like zero-emission vehicle mandates for 2035, congestion pricing, and potential carbon fees on fossil fuel-heavy transport.
Recommendations related to Energy Transition
Implementing congestion pricing in Manhattan should reduce emissions.
State leaders also should consider how transportation emission reductions can be encouraged when making tax policy, state spending, and local aid decisions.
Governor Kathy Hochul recently signed legislation mandating that 100 percent of new passenger cars and trucks sold in NYS be zero-emissions by 2035.
The State also should consider other options, such as 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%
— The transportation sector's share of New York State's total annual carbon dioxide emissions in 2018.
31%
— The increase in transportation emissions in New York State between 1990 and 2018.
4.3 metric tons
— New York State's transportation emissions of CO2 per capita in 2018.
22 MMT
— The amount of aviation-related emissions in 2018, up from 2 MMT in 1990.
21%
— The growth in SUV ownership in New York City between 2016 and 2020.
100%
— The mandate for new passenger cars and trucks sold in New York State to be zero-emissions by 2035.
New York City's Local Law 97 mandates an 80 percent reduction in greenhouse gas emissions from large buildings by 2050, but faces implementation hurdles including an inadequate renewable energy supply and potential disincentives for density. To ensure cost-effective compliance, the City should tailor regulations to provide flexible, clear, and actionable paths for building owners to reduce emissions rather than simply paying penalties.
Recommendations related to Energy Transition
The City should adjust credits appropriately for lack of renewable energy availability to encourage electrification, ensuring credits are calculated as if the grid were on pace to meet renewable energy goals.
DOB should expand allowable RECs to offshore wind and a phased-down portion of Tier 2 RECs to provide buildings with flexibility while the electric grid remains fossil fuel-powered.
The City should specify, expand and continue emission limit adjustments for density and specific uses to alleviate counterproductive disincentives to density and economically vital activities.
DOB should specify and extend need-based building-level adjustments by setting an accelerated, public timeline for rulemaking and universal criteria so owners can determine eligibility as-of-right.
The City should allow carbon trading within an owner’s portfolio to enable owners to target the most cost-effective emissions reductions across their assets.
The City should adjust limits and penalties appropriately to the post-pandemic economy by studying whether emissions limits or alternative compliance paths should be modified due to permanent shifts in work patterns or financial strain.
Key Data
24 percent
— of affected buildings were not compliant with 2024 limits, a figure projected to rise to 75 percent in 2030.
$268
— is the maximum annual fine per metric ton of CO2e emitted over the building's limit.
$218 million
— is the estimated total annual penalty for all covered buildings in 2030 if 2019 emissions levels remain constant.
$20 billion
— is the estimated total city-wide cost of reaching emissions limits set in the first and second compliance periods solely through energy efficiency retrofits.
68.3%
— of downstate energy production in 2019 was derived from fossil fuels.
80 percent
— is the target reduction for greenhouse gas emissions from large buildings by 2050.
$150 million is the amount of capital funding NYC has committed toward the creation of a Center for Climate Solutions on Governors Island. Joining the podcast to discuss this and other plans for Governors Island is Alicia Glen, Chair of the Trust of Governors Island and the former Deputy Mayor…
New York State can advance its climate goals by aligning fiscal policies, such as tax incentives and spending, to prioritize renewable energy over fossil fuel consumption. Implementing these changes, including transitioning government buildings and vehicle fleets, could save the state more than $800 million annually while supporting the transition to a clean energy future.
Recommendations related to Energy Transition
New York could 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.
The state should transition buildings with aging heating systems away from fossil fuels where cost-effective.
New York should convert the government fleet to electric vehicles and build charging infrastructure to accelerate the transition to clean transportation.
The state should align spending decisions and tax policies that work at cross purposes with the CLCPA’s goals to advance all New Yorkers towards a clean energy future.
Key Data
$800 million
— Potential annual state savings from adjusting fiscal policies to align with environmental goals.
$200 million
— Amount New York spent 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 vehicles.
New York must align its tax and spending policies with the Climate Leadership and Community Protection Act (CLCPA) goals to effectively transition to a clean energy future. By eliminating tax exemptions for fossil fuels and redirecting state aid toward renewable energy infrastructure and zero-emission vehicles, the state can better support its ambitious greenhouse gas reduction targets.
Recommendations related to Energy Transition
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.
The State could consider providing financial support to low-income households to enable them to afford switching to clean heating sources.
The State could explore tailoring tax credit programs to create incentives to incorporate renewable energy into program projects.
The State could accelerate the transition to clean fuel vehicles by purchasing electric vehicles and building vehicle charging infrastructure.
Key Data
$800 million
— Annual tax exemptions provided by New York State that reduce the cost of consuming fossil fuels.
$200 million
— State spending on utilities for public buildings in fiscal year 2019.
7,000
— Number of passenger vehicles maintained in the State's vehicle fleet.
$1.8 billion
— Annual economic development grants provided to companies to subsidize expansion or relocation to New York.
$5 billion
— Annual portion of the State's budget allocated for school building aid and transportation aid.
$85 million
— Approximate annual foregone State revenue from the sales tax exemption on gasoline costs exceeding $2 per gallon.
New York's transition to a net-zero carbon economy by 2050 requires significant infrastructure investments to manage increased electricity demand and transmission bottlenecks. Achieving these climate goals necessitates advancing building energy efficiency, expanding renewable power generation, and modernizing the state's electrical grid and distribution networks.
Recommendations related to Energy Transition
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's target for renewable energy by 2030.
40%
— Required reduction in emissions from buildings over 25,000 square feet by 2030.
80%
— Required reduction in emissions from buildings by 2050 from 2005 levels.
New York State's ambitious climate goals, including a 70 percent renewable energy target by 2030, face significant challenges due to the high cost and feasibility of scaling up renewable infrastructure like offshore wind. To achieve these goals cost-effectively, the state should prioritize market-based solutions, such as economy-wide carbon pricing, while maintaining a diverse energy portfolio that includes nuclear power and natural gas.
Recommendations related to Energy Transition
Establish an economy-wide carbon pricing system to deliver effective price signals to energy consumers throughout the state.
Retain the use of nuclear energy to continue to obtain the benefits of carbon avoidance.
Look beyond the borders of New York State for low-cost, low-emissions energy supplies and for opportunities to cut global GHG emissions.
Avoid self-imposed constraints such as limiting gas pipeline capacity.
Promote broad transportation solutions that build on existing infrastructure.
Establish a prioritization system to pursue renewables that provide the greatest GHG reductions at lowest cost.
Key Data
$2.3 billion
— Annual increase in electricity costs if the renewable target is met entirely with offshore wind.
8 and 12 percent
— Projected increase to New Yorkers’ electric bills if the renewable target is met entirely with offshore wind.
94,000 Gigawatt hours
— Additional renewable energy New York State will need to add to meet long-term decarbonization goals.
185 trillion British thermal units
— The amount by which the CLCPA aims to increase energy efficiency by 2025.
70 percent
— The share of electric power New York aims to generate from renewable sources by 2030.
85 percent
— The goal to reduce greenhouse gas emissions by 2050 from 1990 levels.
New York's Climate Leadership and Community Protection Act establishes ambitious goals for reducing greenhouse gas emissions and expanding renewable energy, but achieving these targets will require significant changes in the transportation sector and a dramatic increase in renewable energy capacity. While the state has made progress in reducing emissions, the transition will likely increase electricity rates, necessitating a focus on energy efficiency to mitigate costs for consumers.
Recommendations related to Energy Transition
The state must reverse the trend in the transportation sector, which is 25 percent above 1990 levels, to meet the CLCPA goal of further reducing energy consumption by 185 TBTU by 2025.
Reducing or eliminating transportation sector emissions will be paramount to the CLCPA’s success because it is the largest and a growing source of greenhouse gas emissions.
To meet the 70 percent renewable by 2030 goal, the state will need considerably more renewable energy capacity.
Improving energy efficiency in disadvantaged communities should decrease total consumption and blunt the impacts of rate increases associated with the transition.
The state must overcome technological and bureaucratic hurdles to achieve renewable electricity goals while maintaining a reliable and resilient grid.
Key Data
185 TBTU
— The amount of annual end-use energy consumption the CLCPA aims to conserve by 2025.
34.4 percent
— The amount by which GHG emissions must decline from 2015 levels to reach the 2030 reduction goal.
28 percent
— The portion of New York’s electricity currently generated from renewable sources.
11,000 GWh
— The amount of additional renewable electric production currently under contract, which is only one-fifth of what is needed to meet the 70 percent renewable goal.
40 percent
— The amount by which New York’s residential and commercial electricity rates per KWh are higher than national averages.
34 percent
— The amount less electricity New York households consume on average compared to the national average.
The document tracks 67 economic development bills introduced in the New York State Legislature in 2019, several of which target clean energy and environmental technology. These legislative proposals include tax credits, grant programs, and incubator initiatives designed to incentivize energy innovation and infrastructure upgrades.
Key Data
$100,000
— Maximum grant amount available to small businesses to incentivize the commercialization of energy and environmental technology innovations.
2040 is the year by which Governor Andrew Cuomo wants New York to transition to 100 percent clean electricity. Is this target realistic? Are we on pace to meet it? And at what cost? Seth Hulkower--an expert on energy policy and the former COO of the Long Island Power Authority--joined…
New York's energy sector has become cleaner since 2010, with total carbon dioxide emissions decreasing by 3.6 percent and electrical sector emissions falling by 26.4 percent between 2010 and 2016. This shift, largely driven by a transition from coal to natural gas for electricity production, has also seen electric rates decline across residential, commercial, and industrial sectors.
Key Data
3.6 percent
— Total decrease in carbon dioxide emissions in New York since 2010.
26.4 percent
— Decrease in CO2 emissions in the electrical sector between 2010 and 2016.
175
— Million Metric Tons of CO2 emitted in New York in 2010.
168
— Million Metric Tons of CO2 emitted in New York in 2015.
New York state legislative proposals include various tax credits, grants, and loan programs aimed at incentivizing energy efficiency, clean technology adoption, and microgrid installation for small businesses and farms. These initiatives seek to reduce energy costs and promote environmental sustainability through targeted financial support and infrastructure upgrades.
Recommendations related to Energy Transition
S3121 adds clean environmental and energy technologies to the list of emerging industrial classifications that are eligible for Qualified Emerging Technology Company tax credits.
A10233 and S7769 create a Take Charge New York program, in which awardees receive a microgrid and pay back the New York Power Authority and microgrid provider for the cost of microgrid installation through the value of the energy saved.
A400 and S5420 create a Small Business Electric Energy Tax Credit, equal to two cents per kilowatt hour for electricity usage at the primary business location.
A3284 and S795 provide zero and low interest loans or loan interest rate reduction for energy improvement projects to stimulate growth and development of small businesses.
A7295A and S2480A provide grants and low interest loans of up to $100,000 to dairy farms who make energy efficient improvements.
A9872 provides small businesses with grants up to $100,000 to incentivize commercialization of energy and environmental technology innovations.
Key Data
$100,000
— Maximum grant and low interest loan amount available to dairy farms for energy efficient improvements under A7295A and S2480A.
$100,000
— Maximum grant amount available to small businesses to incentivize commercialization of energy and environmental technology innovations under A9872.
2 cents
— Tax credit amount per kilowatt hour for electricity usage at a primary business location under the proposed Small Business Electric Energy Tax Credit (A400 and S5420).
The document tracks various legislative proposals aimed at economic development, including several initiatives focused on energy efficiency, microgrid installation, and clean technology adoption for small businesses and farms. These proposed measures include tax credits, grants, and low-interest loans designed to incentivize energy improvements and the commercialization of environmental technologies.
Key Data
two cents per kilowatt hour
— The proposed Small Business Electric Energy Tax Credit provides a credit equal to this amount for electricity usage at a primary business location.
$100,000
— The proposed grant and low-interest loan limit for dairy farms making energy efficient improvements.
$100,000
— The maximum grant amount available to small businesses to incentivize the commercialization of energy and environmental technology innovations.
Mr. John Rhodes is Chair of the NY Public Service Commission (PSC), and a former CBC trustee. The PSC is part of the New York State Department of Public Service, whose mission is to ensure affordable, safe, secure, and reliable access to electric, gas, steam, telecommunications, and water services for…
The city's ten-year capital strategy includes $7 billion in new spending for sustainability and resiliency measures, including $2 billion specifically for building retrofits. However, the plan lacks sufficient detail regarding performance metrics, timelines, and specific project goals for these investments, making it difficult to assess their potential impact or cost-effectiveness.
Recommendations related to Energy Transition
The Council should require improved reporting on the rationale for and performance goals of capital spending, specifically regarding the $7 billion in sustainability and resiliency measures, to ensure accountability.
The City must provide greater specificity for the $22 billion in new OneNYC investments, including the sustainability and resiliency measures, before funds are appropriated.
Agencies should provide clear performance metrics and timelines for building retrofits and other sustainability projects to allow for the assessment of spending effectiveness.
Key Data
$7 billion
— New spending allocated for sustainability and resiliency measures within the Ten-Year Capital Strategy.
$2 billion
— Portion of the sustainability and resiliency budget dedicated specifically to building retrofits.
$22 billion
— Total amount of new OneNYC investments, which includes sustainability and resiliency measures, for which specific project details are currently lacking.
New York City spends billions annually to transport millions of tons of garbage to distant landfills, a practice that is both expensive and environmentally damaging due to greenhouse gas emissions. Transitioning to local waste-to-energy facilities, similar to models used in Europe, could significantly reduce costs and lower emissions by converting nonrecyclable waste into power.
Recommendations related to Energy Transition
New York City should follow the example of many European countries that convert nonrecyclable garbage into energy.
The city should explore the ability of existing local facilities to receive additional garbage, either as currently configured or through expansion.
New York City should allow larger new waste-to-energy plants to achieve greater savings.
The city should partner with existing local waste-to-energy facilities to process more city waste.
Key Data
$66 and $77 per ton
— The current cost of local waste-to-energy.
$95
— The cost for long-distance landfilling per ton.
14,400 tons
— The amount of garbage converted to energy equivalent to removing 1,000 cars from the road.
$119 million
— The amount New Yorkers would save annually if local waste-to-energy facilities processed 2 million more tons of city waste.
$2 billion
— The amount New Yorkers would save over 30 years if local waste-to-energy facilities processed 2 million more tons of city waste.
35%
— The reduction in annual greenhouse-gas emissions if local waste-to-energy facilities processed 2 million more tons of city waste.
The Regional Greenhouse Gas Initiative, a market-based cap and trade system, has successfully reduced greenhouse gas emissions while generating significant economic benefits for participating states. Through the auction of emission allowances, the program has raised $912 million and created 16,000 job-years, while saving residents $1.3 billion in utility costs.
Key Data
$912 million
— raised by participating states through the auction of emission allowances from 2008 to June 2011
136,893,163
— allowances sold by New York State
$322.6 million
— total auction proceeds for New York State including interest
152,501
— annual MMBtu in net energy savings estimated by NYSERDA
$1.6 billion
— net present benefit across the entire region in the first three years
16,000
— job-years created according to an Analysis Group study
New York City's green policies, including energy efficiency, waste management, and water conservation, are evaluated for their impact on urban competitiveness and economic growth. The report suggests that while some initiatives are effective, others require re-evaluation based on cost-effectiveness and local jurisdictional authority to better align environmental goals with economic realities.
Recommendations related to Energy Transition
Limit municipal government activities to those appropriate to the local level of government.
Give preference to practices that support and encourage consumer choice and responsible consumer behavior.
Elevate the use of cost-effectiveness as the basis for decision-making, and rethink existing subsidies and regulations with an aim of revising or eliminating those financial incentives which are too generous.
Assess innovative ideas before citywide adoption through evaluation of efforts in other localities and/or pilot programs within New York City.
New York’s leaders should give waste-to-energy technology increased attention.
A renewed effort to authorize and implement congestion pricing should be pursued.
Key Data
55 percent
— Share of commuters using mass transit in New York.
56 percent
— New York's total waste recycling rate.
834,000
— Wireless water meters already installed in New York City.
5.9
— Tons of greenhouse gas emissions per capita in New York.
49 percent
— Reduction in per capita carbon footprint from the national average in the District of Columbia due to industry mix.
2.9 percent
— Test failure rate for New York beaches.
The New York Power Authority's economic development programs, which provide discounted power to businesses, fail to support the state's long-term energy and economic goals. These programs should be overhauled to prioritize energy conservation and market-rate power sales, ensuring that energy policy aligns with broader environmental and economic objectives.
Recommendations related to Energy Transition
New York should phase out current economic development power programs, as no new legislation should be passed to reauthorize them and current contracts should be allowed to expire.
State leaders should include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
New York should sell power no longer used for economic development at market rates to generate additional revenue and increase the operating surplus.
Firms that receive benefits specifically to alleviate the high cost of their power should be required to submit to energy audits and comply with best practices for energy efficiency available from NYSERDA.
Key Data
$479 million to $640 million
— Estimated annual revenue loss and lower costs for the New York Power Authority if it were not substantially discounting power for program participants.
2,322 megawatts
— Total amount of power reserved for selected firms under the New York Power Authority's economic development programs.
453,914
— Total number of jobs committed by firms participating in the New York Power Authority's economic development programs.
1.8 cents to 2.2 cents
— Discounted rate per kilowatt-hour paid by recipients of power programs in 2008, compared to the market rate of 6.7 cents.
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