State energy policy in New York encompasses the laws, regulations, and planning efforts designed to transition the state to a low-carbon economy while managing energy reliability and costs. This page covers CBC’s work on the Climate Leadership and Community Protection Act, the proposed Cap-and-Invest program, building emissions standards like Local Law 97, renewable energy infrastructure, and the fiscal impacts of climate-related mandates on households 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..
The State should recalibrate its emission reductions targets to be ambitious but achievable, with an eye to balancing decarbonization, affordability, and economic growth.
The State should change New York’s emissions accounting methodology to the standard used by nearly all other states in the U.S.
The State should reject new appropriations for the Sustainable Future Program.
The State should reject the two-year utility rate freeze.
The State should reject proposed POWER rebates that waste precious resources.
Key Data
In March 2026, the CBCNY noted that the state's proposed energy plans included adding $1 billion to the Sustainable Future Program, bringing the fund to $2 billion, even though the state had yet to spend half of the $4.2 billion from the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022.
An October 2025 public comment highlighted that the actual contractual strike prices for the state's offshore wind contracts were $146 per MWh and $155 per MWh, which significantly exceeded the Draft State Energy Plan's assumed 2025 cost of $125 per MWh.
In October 2024, the CBCNY reported that the proposed New York Cap-and-Invest program would levy a massive new charge that could potentially reach $12 billion annually by 2030, with total program revenues projected to exceed $30 billion over a five-year period.
In November 2023, the CBCNY reported that New York's share of cumulative Regional Greenhouse Gas Initiative (RGGI) auction revenue reached $2.1 billion, while California's cap-and-invest system had generated more than $38 billion since its inception in 2013.
According to an August 2021 report, New York City's Local Law 97 set emissions limits on buildings larger than 25,000 square feet to cut emissions 40% by 2030 and 80% by 2050, with noncompliant properties facing annual fines of up to $268 per metric ton of excess carbon dioxide equivalent.
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 should recalibrate its ambitious emissions reduction targets to balance decarbonization with affordability and job growth, while switching to standard emissions accounting. Additionally, proposed energy spending should be restrained by rejecting a $1 billion addition to the Sustainable Future Program and avoiding $2.6 billion in temporary utility rebates that offer limited long-term benefits.
Recommendations related to State Energy Policy
The State should recalibrate its emission reductions targets to be ambitious but achievable, with an eye to balancing decarbonization, affordability, and economic growth.
The State should change New York’s emissions accounting methodology to the standard used by nearly all other states in the U.S.
The State should reject new appropriations for the Sustainable Future Program.
The State should reject the two-year utility rate freeze.
The State should reject proposed POWER rebates that waste precious resources.
Key Data
$1 billion
— Proposed addition to the Sustainable Future Program capital spending by the Senate and Assembly.
$2.6 billion
— Proposed energy rebates to New Yorkers to offset high utility bills.
$4.2 billion
— Total funding from the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022, of which the State has yet to spend half.
$500
— Proposed Protecting Our Wallets Energy (POWER) Rebate for households with income below $150,000.
$300
— Proposed Protecting Our Wallets Energy (POWER) Rebate for households with income between $150,000 and $300,000.
New York should adjust its climate goals to be more realistic while adopting standard emissions accounting practices used by other states to improve market participation. Policymakers must also ensure that all energy proposals are accompanied by comprehensive cost-benefit analyses to protect affordability and economic growth.
Recommendations related to State Energy Policy
New York State should recalibrate the CLCPA’s emission reduction goals to be ambitious but attainable.
The State should adopt the emissions accounting used by other states to facilitate participation in broader emissions trading markets.
The State should implement a well-designed cap-and-invest program that balances emissions reduction, 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.
New York's Draft State Energy Plan lacks the necessary detail, transparency, and realistic economic analysis required to effectively guide the state's energy transition. The plan fails to accurately account for recent federal policy changes, underestimates costs, and neglects to provide a clear strategy for how the transition will impact businesses and households across different income levels.
Recommendations related to State Energy Policy
Update the analyses to account for recent federal changes.
Provide realistic estimates with transparent assumptions.
Evaluate existing State programs to facilitate comparison and identify the most cost-effective tools.
Identify specific financial and regulatory actions that would drive the energy transition for each scenario.
Quantify the costs and how they would be allocated to State government, other public entities, businesses, and households.
Quantify the impact on energy costs paid by businesses, by sector and geography.
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.
Broaden the jobs analysis to all sectors and scenarios, and disaggregate by geography.
Propose to modify the States emissions reduction goals to be ambitious, but achievable, to help design programs.
Propose to change New York’s emissions accounting to the conventional accounting method used by all other states and the federal government.
Key Data
30%
— Percentage of project costs that can be covered by Production and Investment Tax Credits for clean energy.
9 GW
— New York's offshore wind target by 2035.
5%
— Percentage of the State's jobs that are in the energy sector.
$146 per MWh
— Contractual strike price for one of the State's current Offshore Wind Renewable Energy Credit contracts.
$155 per MWh
— Contractual strike price for one of the State's current Offshore Wind Renewable Energy Credit contracts.
$125 per MWh
— Assumed cost of offshore wind in 2025 in the Draft State Energy Plan.
New York's proposed Cap-and-Invest program risks significant economic harm and increased costs for residents due to a lack of comprehensive impact analysis and overly ambitious emissions targets. To ensure the program balances environmental goals with economic vitality, the state should recalibrate its 2030 reduction targets, conduct thorough fiscal assessments, and refine program design elements like allowance banking and offsets.
Recommendations related to State Energy Policy
The State should conduct and publicly release a more robust assessment of the program's potential fiscal and economic impacts before or with the draft rules.
New York should recalibrate the 2030 emissions reduction goal to be ambitious but feasible to ensure market-driven, cost-effective emissions reductions.
The State should proceed with rulemaking only when comprehensive assessments are public and based on recalibrated targets.
The State should permit the banking of allowances from the start, rather than waiting until after the first compliance period.
The State should allow the limited use of rigorously verified offsets to improve the program's design.
The State should present a detailed plan to use the program’s revenue, which could exceed $30 billion over the next 5 years.
Key Data
$12 billion
— The potential annual cost of the new emissions charge by 2030, which would function similarly to a new tax.
$30 billion
— The potential revenue the program could generate over the next 5 years.
The state budget must address the $16+ billion structural gap by restraining spending growth, while deferring action on the Heat Act until its full economic impact on consumers is analyzed. This approach ensures that major policy decisions are backed by comprehensive assessments of their financial consequences for New Yorkers.
Recommendations related to State Energy Policy
Defer decisions on the Heat Act until there is a full analysis and proposal about the consumer and economic impact of capping household utility bills, as well as other components.
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 careful design to balance environmental goals with economic competitiveness. To ensure cost-effectiveness, the state should prioritize broad sectoral coverage, allow for geographic linkage with other programs, and maintain flexibility in compliance mechanisms while ensuring transparent revenue management.
Recommendations related to State Energy Policy
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.
$1,460
— Cumulative auction revenue in millions for Washington's cap-and-invest program since 2023.
$91.23
— Most recent allowance price at auction in dollars per ton/CO2e for the European Union as of December 2022.
$63.03
— Most recent allowance price at auction in dollars per ton/CO2e for Washington as of August 2023.
New York City's Local Law 97 aims to reduce building emissions, but requires clearer rules and flexible compliance mechanisms to be effective. With 15,000 buildings currently out of compliance for 2030, owners face up to $15 billion in potential upgrade costs, necessitating early guidance and expanded options for renewable energy credits and carbon trading.
Recommendations related to State Energy Policy
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.
The city should allow carbon trading within an owner’s portfolio to permit building owners to trade emissions credits across their buildings and target reduction efforts where the cost is lowest.
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 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 should prioritize cost-effective investments in its energy transition and conduct rigorous cost-benefit analyses of its environmental proposals to ensure efficient use of resources. Additionally, a comprehensive needs assessment should be completed before disbursing any of the $4.2 billion from the Environmental Bond Act to target the most urgent resiliency and climate adaptation projects.
Recommendations related to State Energy Policy
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
— The amount of funding from the Environmental Bond Act that the State is set to begin disbursing.
New York's ambitious climate goals to reduce greenhouse gas emissions require careful economic planning to ensure that the strategies chosen are cost-effective and minimize negative impacts on residents and businesses. Policymakers must prioritize mitigation efforts that generate the greatest emissions reductions at the lowest cost while thoroughly evaluating the economic consequences of these policies on utility rates, state competitiveness, and government budgets.
Recommendations related to State Energy Policy
The State 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 State should identify, publicize, and consider the impacts of various strategies on state economic competitiveness, especially the additional costs and regulatory burdens of operating a business in New York State.
The State should identify, publicize, and consider the impacts of various strategies on the State’s operating and capital budgets.
The State should implement strategies to increase housing density near public transit via transit-oriented development.
The State should reduce waste generation and improve waste collection through an extended producer responsibility program, a volume-based waste fee, and organic waste reduction.
The State should calculate the cost-effectiveness of each strategy to improve the usefulness of the Final Scoping Plan as a guide for decision making.
The State should determine the probability of each strategy’s success to improve the usefulness of the Final Scoping Plan as a guide for decision making.
The State should identify the incidence of costs and benefits on stakeholder groups and geographies to improve the usefulness of the Final Scoping Plan as a guide for decision making.
Key Data
40%
— New York's goal to reduce greenhouse gas emissions by 2030 from 1990 levels.
85%
— New York's goal to reduce greenhouse gas emissions by 2050 from 1990 levels.
New York voters recently approved a $4.2 billion environmental bond act, and the state's Climate Action Council has finalized a plan to meet climate goals. The state must now prioritize the most cost-effective and achievable policies from its available options to ensure meaningful progress toward these environmental objectives.
Recommendations related to State Energy Policy
The State should identify the most cost-effective and achievable policies and projects from its menu of choices to begin making meaningful progress toward its climate goals.
Key Data
$4.2 billion
— The amount approved by voters for the environmental bond act to help achieve the State's climate goals.
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. To achieve these targets cost-effectively, policymakers must prioritize transparent, data-driven strategies that balance environmental goals with economic competitiveness and the financial realities of building owners.
Recommendations related to State Energy Policy
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 fall 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 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.
The city should specify and extend need-based building-level adjustments by setting an accelerated, public timeline for rulemaking.
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.
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 aims to reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, a goal requiring an estimated $300 billion in investment through 2050. To achieve this efficiently, the state must prioritize cost-effective strategies, utilize market-based incentives, and provide detailed analysis on the economic impacts and feasibility of proposed mitigation measures.
Recommendations related to State Energy Policy
The state should calculate and identify the cost effectiveness of each mitigation strategy to provide a necessary basis for prioritization.
Policymakers should utilize market incentives as much as possible, such as a fee system or a cap-and-trade system, to encourage 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, given its role in generating carbon-free power.
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.
The state should maximize the distribution of renewable energy throughout the state by ensuring energy from upstate sources is available for businesses and households downstate.
Policymakers should determine the probabilities associated with different mitigation strategies because cost-effectiveness alone is not sufficient for prioritization.
The state should appropriately leverage out-of-state low emission resources, such as imported hydro power, rather than categorically ruling them out.
The state should promote transportation strategies that build on existing infrastructure, focusing on the wider adoption of transit and transit-oriented development.
The Final Scoping Plan should identify benefits and costs to the economy and their distribution to each stakeholder group to quantify adverse impacts on climate-challenged communities.
The state should specify the incremental costs of achieving the 2050 goal to support a public discussion on the economic impact of meeting environmental targets.
Key Data
85 percent
— The target for reducing statewide greenhouse gas emissions from 1990 levels by 2050.
$300 billion
— The estimated total costs through 2050 on a discounted present value basis for the proposed climate scenarios.
New York City's Local Law 97 aims to significantly reduce greenhouse gas emissions from large buildings by 2050, but its success depends on the state's ability to increase the supply of renewable energy and the city's implementation of flexible, cost-effective compliance pathways. Without clear, timely guidance and adjustments for economic realities, building owners may face excessive costs or opt to pay penalties rather than invest in necessary emissions-reducing retrofits.
Recommendations related to State Energy Policy
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, providing clear and appropriate adjustments for these uses, including economically important activities disincentivized by classifications, and extending adjustments past the first compliance period.
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
$268
— Annual fine per metric ton for buildings whose GHG emissions are above the established limit.
24 percent
— Percentage of affected buildings that were not compliant with 2024 limits, according to 2019 data.
$218 million
— Total annual penalties in 2030 for all covered buildings if 2019 emissions were constant.
68 percent
— Share of citywide emissions accounted for by buildings.
70 percent
— Mandated share of electricity coming from renewable sources by 2030 under the CLCPA.
$20 billion
— Estimated total city-wide cost of reaching the emissions limits set in the first and second compliance periods solely through energy efficiency retrofits.
New York State's current fiscal policies, including tax exemptions and incentives, often inadvertently subsidize fossil fuel consumption rather than supporting the state's climate goals. By aligning spending and tax policies with the Climate Leadership and Community Protection Act, the state could save over $800 million annually while accelerating the transition to clean energy.
Recommendations related to State Energy Policy
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 by ensuring economic investment tax credits exclude heating systems that rely on fossil fuels.
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 tax policies to exclude fossil fuel-reliant heating systems.
$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.
New York State's tax and spending policies often conflict with the Climate Leadership and Community Protection Act's goals to reduce greenhouse gas emissions and expand renewable energy. By reforming tax exemptions for fossil fuels and redirecting state aid for school buildings and transportation toward clean energy, the state can better align its fiscal decisions with its environmental objectives.
Recommendations related to State Energy Policy
The State could limit the residential energy sales tax exemption only to zero emission fuels and renewable energy sources to better 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 eliminating exemptions for fossil-fuel based energy used for non-residential purposes, such as research and development.
When replacing aging heating systems in public facilities, the State could transition 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 through economic development grants.
State aid could incentivize school districts to purchase zero-emission school buses and build the needed charging infrastructure.
Key Data
$800 million
— Annual tax exemptions provided by New York State that reduce the cost of consuming fossil fuels.
$200 million
— Amount spent by the State on heating, cooling, and providing electricity to public buildings in fiscal year 2019.
7,000
— Number of passenger vehicles maintained in the State's vehicle fleet.
$1.8 billion
— Annual amount provided by the State in economic development grants to companies.
$5 billion
— Portion of the State's budget allocated for school building aid and transportation aid.
$85 million
— Amount of foregone State revenue from the sales tax exemption on gasoline exceeding $2 per gallon.
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. Simultaneously, New York City law requires buildings over 25,000 square feet to reduce emissions by 40% by 2030 and 80% by 2050, necessitating significant infrastructure investments to manage the resulting increase in electricity demand.
Recommendations related to State Energy Policy
Continue to advance the energy efficiency of buildings to lower electrical demand.
Rapidly deploy significantly more renewable power, while protecting existing carbon-free generation such as hydro power and bringing 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%
— Target for renewable energy in New York State by 2030 under the Climate Leadership and Community Protection Act.
40%
— Required reduction in emissions from New York City buildings over 25,000 square feet by 2030.
80%
— Required reduction in emissions from New York City buildings over 25,000 square feet by 2050 from 2005 levels.
New York's ambitious climate goals, including a 40 percent reduction in greenhouse gas emissions by 2030 and 85 percent by 2050, require a massive, cost-effective expansion of renewable energy and infrastructure. Achieving these targets necessitates a balanced approach that prioritizes competition, maintains optionality in technology, and avoids counterproductive policies like blocking natural gas infrastructure or prematurely retiring nuclear plants.
Recommendations related to State Energy Policy
New York should establish an economy-wide carbon pricing system to deliver effective price signals to energy consumers throughout the state.
The state should retain the use of nuclear energy to continue to obtain the benefits of carbon avoidance.
New York should look beyond its borders for low-cost, low-emissions energy supplies and for opportunities to cut global GHG emissions.
The state should avoid self-imposed constraints such as limiting gas pipeline capacity.
New York should promote broad transportation solutions that build on existing infrastructure.
The state should establish a prioritization system to pursue renewables that provide the greatest GHG reductions at lowest cost.
Key Data
40 percent
— The goal to reduce greenhouse gas emissions by 2030 from 1990 levels.
85 percent
— The goal to reduce greenhouse gas emissions by 2050 from 1990 levels.
70 percent
— The goal for the share of electric power generated by renewable sources by 2030.
$2.3 billion
— The estimated annual increase in electricity costs for New Yorkers if the renewable target is met entirely with offshore wind.
94,000 Gigawatt hours
— The amount of additional renewable energy New York State will need to add to meet decarbonization goals.
185 trillion British thermal units
— The goal for increasing energy efficiency by 2025.
New York's Climate Leadership and Community Protection Act establishes ambitious targets to reduce greenhouse gas emissions and increase renewable energy production, including a goal to source 70 percent of electricity from renewables by 2030. However, achieving these objectives will require significant infrastructure expansion and overcoming regulatory hurdles, all while managing the impact on electricity rates that are already 40 percent higher than the national average.
Key Data
70 percent
— The CLCPA goal to increase renewable electricity sources by 2030.
28 percent
— The portion of New York's electricity currently generated from renewable sources.
40 percent
— The amount by which New York's residential and commercial electricity rates per KWh exceed national averages.
185 trillion British thermal units (TBTUs)
— The amount of annual end-use energy the CLCPA aims to conserve by 2025.
9 gigawatts (GW)
— The amount of offshore wind electric generation the CLCPA aims to develop or support by 2035.
$103
— The average monthly electricity bill for New York residential customers, compared to the national average of $112.
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 dropping by 26.4 percent between 2010 and 2016. Despite these environmental improvements, residential electricity costs remain approximately 40 percent higher per kilowatt hour than the national average.
Key Data
3.6%
— Total carbon dioxide emissions decreased by this amount in New York since 2010.
26.4%
— CO2 emissions decreased by this amount in the electrical sector between 2010 and 2016.
40%
— Residential electricity costs in New York are this much higher per kilowatt hour than national averages.
30%
— Industrial electric rates in New York declined by this amount between 2010 and 2016.
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 fiscal year 2018 executive budget proposals include significant investments in energy initiatives, most notably $360 million for the construction of 11 major renewable energy projects. These proposals also encompass policy shifts regarding the closure of the Indian Point nuclear power plant, the installation of 500 electric vehicle charging stations, and a reduction in the Regional Greenhouse Gas Initiative cap by 30%.
Key Data
$360 Million
— Cost allocated to construct 11 major <b>renewable energy projects</b>.
500
— Proposal to install <b>new charging stations</b> for electric vehicles.
30%
— Proposed reduction in the <b>Regional Greenhouse Gas Initiative cap</b> by 2030.
New York's 2012 budget restricts the sale of unallocated hydropower to businesses within a 30-mile radius of the Niagara Power Project, a policy that undermines state conservation goals by encouraging energy consumption. These power subsidy programs should be completely overhauled to remove such parochial constraints and better align with environmental objectives.
Recommendations related to State Energy Policy
The power programs should be completely overhauled to remove parochial constraints and align with New York’s conservation goals.
Performance metrics and evaluative analysis should be systematically employed to identify failing programs for elimination or redesign before new programs are grafted onto an already fragmented governance structure.
The Regional Greenhouse Gas Initiative, a multi-state cap-and-trade program, has successfully reduced greenhouse gas emissions while generating significant economic benefits through the auction of emission allowances. Participating states have raised $912 million in proceeds, which have been reinvested into energy programs, resulting in $1.6 billion in net regional benefits and substantial savings on utility bills for residents.
Key Data
$912 million
— Total amount raised by participating states through the auction of emission allowances from 2008 to June 2011.
$321.6 million
— Auction proceeds generated by New York State from the sale of 136,893,163 allowances.
$1.6 billion
— Net present benefit of the initiative across the entire region in the first three years.
$1.3 billion
— Amount saved by residents in reduced utility bills due to the initiative.
16,000
— Number of job-years created by the initiative in the region.
152,501
— Annual MMBtu in net energy savings achieved through funding from the initiative.
New York City's environmental policies should prioritize cost-effectiveness and consumer choice, focusing on areas like energy efficiency in buildings, enhanced public transportation, and modernized electricity grids. Rather than relying on potentially wasteful local subsidies, the city should leverage existing federal and state programs while testing innovative approaches through pilot programs before citywide implementation.
Recommendations related to State Energy Policy
Municipal leaders should limit municipal government activities to those appropriate to the local level of government to ensure effective policy implementation.
The city should give preference to practices that support and encourage consumer choice and responsible consumer behavior in its environmental strategies.
Policymakers must elevate the use of cost-effectiveness as the basis for decision-making when assessing green initiatives.
The city should assess innovative ideas before citywide adoption through evaluation of efforts in other localities or through local pilot programs.
New York should pursue a renewed campaign to gain State legislative approval for congestion pricing to encourage shifts to cleaner transportation modes.
Key Data
$38,000
— Cost of a commercial firm investing in a 5-kilowatt solar panel.
834,000
— Number of wireless water meters already installed in New York City.
14 percent
— Estimated portion of particulate matter in New York City air attributed to heating oil.
5.6 percent
— Estimated reduction in overall air pollution resulting from the new law cutting sulfur content in #4 heating oil.
New York's economic development programs, including the Power for Jobs initiative, have become costly and opaque, with annual costs for the latter estimated between $479 million and $640 million. To improve economic competitiveness and align with environmental goals, these programs should be replaced with initiatives that prioritize conservation, include environmental audits, and operate within a clear, metrics-based economic development strategy.
Recommendations related to State Energy Policy
The Power for Jobs program should be replaced without further delay.
A new Power for Jobs program should complement, rather than undermine, the state's goals for conservation and increased use of energy from renewable sources.
Legislation for the new program should include greater provisions for environmental audits to help firms identify areas where they can conserve energy and improve access to the capital they will need to comply with any recommended changes.
Both replacement programs should be fit into a larger economic development strategy that identifies overarching goals and includes metrics for assessing the performance of new programs.
Key Data
$479 million
— The lower bound estimate of the annual cost of the New York Power Authority's economic development programs.
$640 million
— The upper bound estimate of the annual cost of the New York Power Authority's economic development programs.
$100 million
— The amount of direct aid provided to residential rate-payers to replace discount power contracts.
New York's economic development programs, which provide discounted power to businesses, are currently disconnected from the state's long-term energy and economic goals, often undermining conservation efforts. The report proposes a complete overhaul of these programs, including phasing out current subsidies and linking future assistance to energy efficiency and comprehensive economic strategies.
Recommendations related to State Energy Policy
The state should phase out current economic development power programs, as no new legislation should be passed to reauthorize them.
New York should include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
The state should sell power no longer used for economic development at market rates to generate additional revenue and increase operating surpluses.
New York should link energy conservation and economic development goals and programs by requiring firms that receive benefits to submit to energy audits.
Key Data
$479 million to $640 million
— Estimated annual revenue loss and lower costs for NYPA if it were not substantially discounting power for program participants.
2,322 megawatts
— Total program size of NYPA's economic development programs.
453,914
— Total jobs committed to NYPA's economic development programs.
$1,055 to $1,410
— Estimated cost per job across all NYPA economic development programs.
15.9 cents/kWh
— Average commercial electricity price in New York in 2007.
8.7 cents/kWh
— Average industrial electricity price in New York in 2007.
New York's economic development programs administered by the Power Authority provide deep, poorly disclosed subsidies that often conflict with state energy conservation goals. The state should phase out these programs, improve transparency, and integrate energy efficiency requirements into any future economic development assistance.
Recommendations related to State Energy Policy
Phase out current programs by allowing existing contracts to expire and passing no new legislation to reauthorize them.
As programs are phased out, they should be subject to greater disclosure requirements regarding the value of power received and economic benefits.
Include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
Sell power no longer used for economic development at market rates to ensure funds remain devoted to economic development goals or infrastructure improvements.
Link energy conservation and economic development goals by requiring firms that receive benefits to submit to energy audits and comply with best practices for energy efficiency.
Key Data
$479 million and $640 million
— Estimated annual spending by the New York Power Authority on nine economic development programs.
$5,836 to $7,883
— Per-job subsidy range offered by the five hydro programs.
$247 to $630
— Per-job subsidy range offered by the five purchased power programs.
$48,000, $80,000, and $164,000
— Staggering per-job subsidy amounts received by some beneficiaries.
$600 million
— Newly negotiated capital improvements for the Alcoa allocation over 30 years.
$157 million
— Estimated annual subsidy worth promised to Alcoa in exchange for their allocation.
New York's economic development programs run by the Power Authority are failing to support the state's long-term energy and economic goals, often subsidizing power without encouraging conservation or strategic growth. The state should overhaul these programs by phasing out current subsidies, selling power at market rates, and better aligning energy assistance with broader economic development strategies.
Recommendations related to State Energy Policy
New York should phase out current economic development programs and allow existing contracts to expire rather than reauthorizing them.
The state should include assistance for firms with high energy costs as part of a comprehensive economic development strategy administered by Empire State Development.
NYPA should sell power no longer used for economic development at market rates to increase its operating surplus.
State leaders should link energy conservation and economic development goals and programs by requiring firms receiving benefits to submit to energy audits.
Key Data
$479 million to $640 million
— Estimated annual cost of NYPA's economic development programs.
1,400 miles
— Miles of transmission lines owned by NYPA that form the backbone of New York's electrical grid.
1.8 cents to 2.2 cents
— Price per kilowatt-hour paid by program recipients in 2008, compared to the market rate of 6.7 cents.
2,322 megawatts
— Total amount of power reserved for selected firms under NYPA's economic development programs.
New York's electricity costs are higher than in every other competitor state, placing the state in the middle tier for physical infrastructure. Despite a slight reduction in rates over the five-year period, the state's performance in lowering these costs remains poor compared to its peers.
Key Data
10.7
— The 1998 electricity rate in New York (cents per kwh), which was higher than in every other competitor state.
-0.1%
— The five-year change in New York's electricity rates, indicating a minimal reduction.
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