Governor Hochul Delays Cap-and-Invest Program, Withholding Billions in Benefits as Climate Targets Slip Further Out of Reach

ALBANY, N.Y. — Today’s State of the State indicates that Governor Kathy Hochul has shifted the timeline for the release of the primary regulations under New York’s cap-and-invest program, meaning that New Yorkers will need to wait even longer for the pollution cuts and investments that the program is set to deliver upon implementation.  

“At a time when states with climate commitments should be stepping up to lead, New York is stepping back.” said Kate Courtin, Senior Manager, State Climate Policy & Strategy at EDF. “By continuing to kick cap-and-invest down the road, Governor Hochul is delaying the benefits that New Yorkers want — cleaner air, lower energy bills and more resilient communities. Meanwhile, the cost burdens from climate change-fueled disasters, like excessive flooding and severe storms, will continue to mount.”

Cap-and-invest was recommended by the Climate Action Council, following an in-depth public review process, as a comprehensive and cost-effective tool to deliver the mandatory cuts in climate pollution required by New York’s 2019 climate law.  New York statute requires that the Department of Environmental Conservation adopt regulations to ensure compliance with the state’s climate goals, and the deadline for finalization passed over a year ago. Unfortunately, significantly delaying implementation of New York’s cap-and-invest program puts New York well behind the pace needed to achieve its climate goals and delays pollution cuts that benefit New York communities.

This delay keeps game-changing benefits from New Yorkers. A strong cap-and-invest program would deliver both environmental and economic benefits to New Yorkers by accelerating the transition to cleaner energy while delivering real savings to households. For instance, cap-and-invest could help save the average New York household up to $1,022 annually by upgrading to clean, efficient heat pumps. These clean energy investments, combined with the program’s household rebates and community-led pollution reduction priorities, would deliver transformative economic and health benefits for years to come. The analysis also shows that the stronger the program, the more widespread these cost-savings and benefits will be.

New York’s delay comes on the heels of a victory in Washington state where 62% of voters defended the state’s ambitious cap-and-invest program — outperforming both the gubernatorial and presidential races. Nearly 600 organizations, including community groups, Tribes, labor unions, and businesses came together to advocate for the program and the transformative climate and community investments it enables. This win demonstrates that ambitious climate action is not only possible, it’s popular.

At a time when tackling the climate crisis head-on could not be more important, New York is dragging its feet — a move that will only result in more pollution and fewer benefits for New Yorkers.