Recently, City & State, a media outlet covering New York state policies, revealed an internal memo submitted by the New York State Energy Research and Development Authority (NYSERDA) to the governor’s office. The contents of the memo indicate that if the Climate Leadership and Community Protection Act (CLCPA) passed in 2019 is fully implemented, some New York state households could see an increase of over $4,000 in their annual energy bills by 2031.
Governor Hochul mentioned at a press conference in Manhattan unrelated to climate issues on Thursday that since 2019, “the world has undergone enormous changes,” hinting that the state government is reevaluating the pace and approach of advancing climate policies. She pointed out that the full cost of complying with the climate law would result in an average additional expenditure of about $3,500 per household.
According to the memo, assuming the implementation of a “cap-and-invest” system for carbon emissions without capping permit prices, households in upstate New York using natural gas or oil for heating could see total costs increase by over $4,100 by 2031 if they maintain their current equipment. In New York City, households using natural gas could experience a cost increase of about $2,300, while gasoline prices could potentially rise by $2.23 per gallon.
Even with affordability subsidies, upstate households might still face a net increase of around $2,500, and city households could see an increase of $1,500. The memo also notes that switching to more efficient fossil fuel equipment could slightly alleviate cost pressures.
The memo emphasizes that if households transition to “efficient electrification” – such as using heat pumps and electric equipment instead of oil and gas – there could be net savings after factoring in subsidies: upstate electrified households could save an average of around $1,500, and city electrified households could save about $800 on average.
The NYSERDA estimates that to achieve the legally mandated 40% emission reduction target by 2030, the carbon price may need to increase from $120 per ton to $179.80 per ton by 2031. The memo also points out that advancing according to the original design and timetable, due to using emission calculation methods different from international standards and overly rigid short-term goals, will lead to high costs for households and businesses.
Hochul expressed that the resistance of the Trump administration to renewable energy policies, particularly in the reduction of resources in offshore wind and solar energy sectors, has made it more challenging for New York State to achieve its emission reduction goals.
The memo states that the current progress in clean energy deployment is inadequate, and achieving the goals within the set timeframe is deemed “unworkable” under current conditions.
The business elite group, Partnership for NYC, released a statement supporting the governor’s proposal to make energy more affordable and reliable through amendments, urging the state legislature to push forward with related legislation.
Republican officials view the memo as a critical basis for opposing the climate law. Nassau County Executive and Republican gubernatorial candidate Bruce Blakeman stated that if elected governor, he would terminate the CLCPA on his first day in office, pledging to reduce utility costs and ensure reliable energy supply.
Former U.S. Congressman Marc Molinaro recently remarked on a platform, “This is not climate policy, it’s unaffordable and reckless policy.” The Republican caucus in the state senate also published a statement acknowledging that the current climate policy will significantly increase costs for residents.