New York strengthens regulations to cut pollution from power plants and invest in clean, affordable energy

(NEW YORK — August 5, 2026) Today, the New York State Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) adopted updates to strengthen New York’s  Regional Greenhouse Gas Initiative (RGGI) regulations, ensuring the program will continue to cut climate and air pollution, and invest in clean energy and energy efficiency programs that lower energy bills for families. 

Launched in 2009, RGGI caps power sector emissions across 11 states in the Northeast and Mid-Atlantic and requires power plants to purchase allowances for every ton of pollution they emit. RGGI has helped cut climate pollution from power plants in New York by more than 50% since 2005 and delivered $12 billion in net savings for ratepayers, a six-to-one return on $2 billion in investments to date. This proven program underscores the effectiveness of cap-and-invest policies that require polluters to pay for their pollution and reinvest revenue in programs that lower energy bills. 

Updated regulations will tighten the pollution cap and introduce new measures to protect energy affordability, aligned with program updates agreed by all states in the RGGI region last summer. These changes reaffirm the program’s commitment to cutting pollution, promoting clean affordable energy, and supporting local communities.  

“For nearly two decades, RGGI has delivered for New Yorkers, cutting climate and air pollution, lowering energy bills, and driving job-creating investments into local communities burdened by pollution,” said Kate Courtin, Senior Manager for State Climate Policy and Strategy at Environmental Defense Fund. “By strengthening the program, the Hochul administration is taking a critical step to scale clean affordable energy and ensure that the health and bill-lowering benefits of RGGI reach even more New Yorkers in the years to come.” 

A stronger RGGI program will provide critical investments to programs that lower energy costs for New Yorkers. Examples of programs funded by RGGI to date that will be sustained and scaled as a result of these updates include:

• EmPower+, which provides low and moderate-income households up to $10,000 to upgrade their homes with energy efficiency measures that cut utility bills by $600 a year.
• NY-Sun, which makes cheap, local solar energy more accessible to homes and businesses. During a heatwave last June, solar saved New Yorkers an estimated $90 million in one day by lowering demand on the electric grid. 
• The Drive Clean Rebate program which has helped more than 225,000 New Yorkers switch to an EV and save on the order of $370 to $1,000 per year on fuel costs alone.