New York State Takes Leading Step Forward with Cap-and-Invest Program to Significantly Curb Climate Pollution

(NEW YORK, NY — December 20, 2023) Today, Governor Hochul’s administration took an important step towards reducing harmful climate pollution and protecting communities with the release of the New York Cap-and-Invest Pre-Proposal Outline. This is the next step in the rulemaking process — led by the New York Department of Environmental Conservation (DEC) in partnership with the New York State Energy Research and Development Authority (NYSERDA) — to develop New York’s economy-wide cap-and-invest program. 

By setting an enforceable, declining limit on climate pollution, a high-ambition program will serve as an essential backstop for New York in reaching its 2030 and 2050 emissions targets and reducing overall climate pollution on New York’s path to net-zero emissions. The program will simultaneously drive significant investments in an equitable clean energy transition.  

By implementing a robust cap-and-invest program, New York can further solidify its position as a national climate leader. Recent EDF analysis shows that leadership states can have a significant impact on our national climate progress. By leveraging the powerful policy tools available to them — like cap-and-invest — to achieve their climate commitments, these states can close the gap to the U.S. 2030 goal in half. 

While key details will be forthcoming in the rulemaking process, the Pre-Proposal Outline indicates the Hochul administration’s commitment to climate action that can deliver at the pace and scale required while prioritizing benefits to New York’s overburdened communities. NYSERDA and DEC also today released the New York State Climate Affordability Study, recommending approaches to support energy affordability for New Yorkers, particularly those already bearing disproportionate energy costs. 

“The Hochul Administration is taking a critical step in delivering the kind of climate solutions that New Yorkers need by outlining a program that would rapidly cut climate pollution and invest in an equitable and affordable clean energy transition in communities across New York state,” said Kate Courtin, Senior Manager, U.S. Climate at EDF. “This represents a clear commitment from Governor Hochul and her administration to doing the important and challenging work required to tackle climate change while delivering health and economic benefits to New Yorkers.” 

“An ambitious program with a high-integrity cap on emissions will play a critical role in getting New York on track to meet its climate targets and delivering a safer, healthier future for New Yorkers. While the Administration is continuing to seek input on several key program details, including mechanisms that would increase protections and benefits for disadvantaged communities, we believe that this is a critical step forward. New York is demonstrating the type of action that states serious about reaching their climate goals should be taking, at a moment when states have an enormous opportunity to leverage federal investments in clean energy. We hope other state leaders are taking note of these exciting developments in New York.” 

Background 

• New York passed a sweeping climate law in 2019 that established science-based emissions targets (a 40% reduction in emissions from 1990 levels by 2030, and at least 85% by 2050) and strong environmental justice requirements while also providing state agencies with broad authority and a clear directive to meet those targets.  
• As required by the law, a multi-year stakeholder and public consultation process followed to develop a comprehensive plan to reach those targets (known as the “scoping plan”). That plan was finalized late last year and recommended the development of an economy-wide cap-and-invest program to ensure reductions occur in line with the climate law’s targets. 
• In early 2023, Gov. Hochul directed her agencies — led by the NY Department of Environmental Conservation (DEC) in partnership with NYS Energy Research & Development Authority (NYSERDA) — to move forward with a rulemaking to establish the cap-and-invest program. 
• Now that the Pre-Proposal Outline has been released, there will be another opportunity for public comment, before a full draft rule is released sometime next year. The agencies have stated that they are aiming for compliance with the program to begin in 2025.   
• If adopted, New York would become the third state in the U.S. after California and Washington state to deploy a cap-and-invest program that covers emissions across its economy. 

To learn more, read our blog explaining how a cap-and-invest program in New York would work.