NRDC on Climate Law Changes in New York Budget: “Deeply Disappointing”

New York environmental advocates are criticizing changes to the state’s landmark climate law included in the newly approved state budget, warning the revisions could slow progress toward reducing greenhouse gas emissions and transitioning away from fossil fuels.

The amendments to New York’s Climate Leadership and Community Protection Act, or CLCPA, delay key emissions regulations and alter enforcement mechanisms tied to the state’s climate targets. Supporters of the changes, including Gov. Kathy Hochul’s administration, have argued the revisions provide flexibility as the state balances climate goals with affordability concerns.

But environmental groups, including the Natural Resources Defense Council, called the changes a “major setback” for New York’s climate agenda.

“There’s no way to sugarcoat what just happened in the state budget,” said Jackson Morris, director of state power sector policy at NRDC. “It’s a major setback for New York’s climate and clean energy leadership.”

Morris said one of the most significant changes involves the state’s 2030 emissions reduction benchmark. While the target of reducing emissions 40% below 1990 levels by 2030 remains in law, the requirement that the state implement regulations specifically tied to meeting that target was removed.

“The 2030 target for the state is still in law,” Morris said. “What happened in this package is that the requirement to promulgate regulations to meet that 40% target in 2030 is no longer in law.”

The revised budget also establishes a new interim target of reducing emissions 60% by 2040 while maintaining the state’s long-term goal of cutting emissions 85% by 2050.

Morris said the new 2040 benchmark could still provide a framework for future climate regulations if state leaders move quickly.

“There is now a statutory requirement to stand up regulations by 2028 and consider and put forward a strong cap-and-invest program,” he said. “That really is kind of the lynchpin for how New York State will meet its economy-wide reduction targets.”

The proposed cap-and-invest system would require fossil fuel companies to purchase allowances tied to greenhouse gas emissions, generating revenue the state could reinvest in clean energy, energy efficiency and consumer relief programs.

“You’ve got the cap that gets you the reductions we need according to the science, and you’ve got the invest, which is the revenue that comes in from the purchase of those allowances over time,” Morris said.

Morris rejected arguments that stronger climate regulations would increase costs for residents, saying dependence on fossil fuels already exposes consumers to price spikes and volatility.

“Until we can get off a fossil fuel roller coaster, New Yorkers are going to continue to see higher costs, higher volatility on their energy bills,” he said.

He pointed to rising fuel prices tied to international conflicts as evidence of those risks, noting New Yorkers have spent billions more on gasoline and diesel in recent months.

The budget package also includes a one-year $1 billion Sustainable Future Fund to support energy efficiency upgrades, solar expansion and zero-emission transportation initiatives.

Morris called the funding “an important infusion of investment,” but said long-term revenue from a cap-and-invest program would still be necessary to sustain climate initiatives statewide.

Despite the setbacks, Morris said environmental advocates are now focused on ensuring the state follows through on implementing stronger climate policies in the coming years.

“I wouldn’t say it’s a signal that New York is no longer capable of leading on climate,” he said. “What I do think it is is that it is a significant setback.”

Image: Employees of NY State Solar, a residential and commercial photovoltaic systems company, install an array of solar panels on a roof, Aug. 11, 2022, in the Long Island hamlet of Massapequa, N.Y. (AP Photo/John Minchillo, File)