New York Gov. Kathy Hochul may slow implementation of the state’s ambitious climate law in the face of rising residential energy costs, setting up an intraparty fight with Democrats ahead of her November reelection bid.
Democratic lawmakers are now scrambling to respond to Hochul’s shifting position on climate policy. Specifically her concerns over costs associated with a cap-and-invest program contained in the 2019 climate law, which calls for the state to achieve zero-carbon emissions in electricity by 2040.
The debate was heightened over a Feb. 26 memo from the state’s energy research authority that cited an increase of up to $4,000 in household costs if the state implements a carbon tax, one of the main goals of the climate law.
Hochul in recent months has navigated politically perilous territory on energy as electricity demand spikes and utility costs increase in New York. She has cited the lack of federal support for clean energy, including the Trump administration’s pause of offshore wind projects including those on Long Island, as an obstacle.
“I’m trying to do all of the above with the limitations we have, but I think we can get there if they stop handcuffing the projects that we’ve already planned on,” Hochul said of her energy policy during a March 4 news conference.
The Feb. 26 memo foreshadows a battle between climate advocates, lawmakers, and Hochul, a moderate who faces a reelection campaign in November, that may play out in the state budget process ahead of the April 1 deadline. A coalition of Democratic state senators told Hochul in a Thursday letter they “categorically oppose any effort” to roll back the climate law and urged her to “stand strong in the face of misinformation” about its costs.
GOP lawmakers have called for a complete repeal of New York’s climate law, signed by former Gov. Andrew Cuomo. Under the program—which the state has yet to implement pending litigation —companies that produce large-scale greenhouse gas emissions and those that distribute heating and transportation fuels have to buy allowances for their activities. The proceeds go toward promoting a carbon-free economy.
“If we want to address affordability, we need to look at natural gas and stop the false narratives about the state’s climate law,” said state Sen. Pete Harckham (D), who chairs the environmental committee, in an interview. “It would be really unwise to try and negotiate rolling that back behind closed doors in the dark of night.”
Hochul isn’t the only Democratic official tempering their climate stance as they weigh higher energy prices in the cost of transitioning to renewable sources. California Gov. Gavin Newsom (D) has toned down his rhetoric against oil companies over the last few years as the state faces the prospect of refinery closures pushing up gasoline prices that are already the highest in the US.
In New Mexico, a coalition of Democrat lawmakers in February killed a bill that would codify zero-emissions targets by 2050, citing affordability concerns, while environmental advocates in Colorado have said similar targets mandated under Democratic Gov. Jared Polis are at least a year behind schedule.
Warren Leon, director of the Clean Energy States Alliance, said commitments to finding renewable energy sources remained among blue states, but that Democrats have had to reevaluate the feasibility of short-term climate targets.
Democratic governors “are saying they don’t want to diminish renewables, but that in the short run, we may need more natural gas than seemed the case,” Leon said.
Republicans Cheer
Business groups and Republicans have cheered the Feb. 26 memo from the New York Energy and Research Development Authority, which was sent to Hochul’s director of operations, Jackie Bray.
They have been critics of the law, which directs the state to reduce greenhouse gas emissions by 40% of 1990 levels by 2030, and 85% by 2050, using a cap-and-invest program to meet those targets. Funds from the program would be invested in projects like zero-emissions vehicles and all-electric housing.
Democrats “for the last year and a half, they’ve been talking about affordability, and at the same time championing these policies that they unequivocally know are driving up costs,” said state Sen. Rob Ortt (R) who heads the Republican conference.
The energy authority’s memo pushes back on the cap-and-invest program, citing gasoline price increases of $2.23 per gallon on top of current levels. The energy authority estimates New York City households would face annual cost increases of $2,300, while upstate families would face $4,000 in additional costs if full compliance with the climate law takes effect.
Environmental advocates have argued the Hochul administration is using the cap-and-invest program as cover for a more wholesale rollback of the climate targets.
They also say that addressing affordability requires transitioning away from nonrenewable energy sources. Liz Moran, an environmental lobbyist with the climate organization Earthjustice, said current spikes in energy prices are due to a reliance on natural gas infrastructure. She cited a volatile global market for the fuel and aging gas infrastucture.
“Today’s narrative is that we need gas for affordability and reliability, but that couldn’t be further from the truth,” Moran said. “We need the leadership of Democrats to stand up for what’s in the best interest of their constituents, despite what the oil and gas industry is pushing.”
Andrew Oxford in Sacramento also contributed to this story.
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