Economywide Cap-And-Make investments Program Will Fund a Sustainable Future Whereas Defending Customers

January 10, 2023

Governor Kathy Hochul at the moment introduced a Cap-and-Make investments Program to fund a sustainable and inexpensive future for all New Yorkers as a part of the 2023 State of the State. Governor Hochul directed the Division of Environmental Conservation and the New York State Power Analysis and Growth Authority to advance an economywide Cap-and-Make investments Program that establishes a declining cap on greenhouse fuel emissions, invests in applications that drive emissions reductions in an equitable method prioritizing deprived communities, limits prices to economically susceptible households, and maintains the competitiveness of New York industries. As well as, Governor Hochul will suggest laws to create a common Local weather Motion Rebate that’s anticipated to drive greater than $1 billion in future cap-and-invest proceeds to New Yorkers yearly.

“As we work to drive down polluting emissions throughout the board, we should ensure that those that have already suffered from environmental injustice not bear an unfair share of the burden,” Governor Hochul mentioned. “Our formidable Cap-and-Make investments Program units a cap on greenhouse fuel emissions and shares the revenues with New Yorkers from deprived communities to assist cowl utility payments, transportation prices and decarbonization efforts. By means of our modern efforts, we’ll create a cleaner, greener future whereas serving to New Yorkers with the prices of the transition.”

New York is endeavor probably the most formidable and complete efforts in america to deal with the specter of local weather change. This new Cap-and-Make investments Program will enable New York to proceed making essential investments in our clear vitality future whereas supporting susceptible and deprived communities within the face of rising international vitality costs.

Starting instantly, DEC and NYSERDA will design a program that units an annual cap on the quantity of air pollution that’s permitted to be emitted in New York, as advisable within the lately finalized Local weather Motion Council Scoping Plan . Yearly, the emissions cap can be lowered, setting the State on a trajectory to satisfy our Local weather Act necessities of 40 % in emissions by 2030, and not less than 85 % discount from 1990 ranges by 2050. At Governor Hochul’s course, this system design will prioritize 5 core rules:

• Affordability: A Cap-and-Make investments Program should put the wellbeing of New York households first. In her upcoming Government Funds, Governor Hochul will suggest laws to create a common Local weather Motion Rebate that’s anticipated to drive greater than $1 billion in future cap-and-invest proceeds to New Yorkers yearly. The Local weather Motion Rebate can be designed to mitigate client prices, whereas preserving essential funding for consumer-led decarbonization efforts, together with vitality effectivity measures that cut back vitality prices, clear mobility options that cut back transportation prices, and different investments that enhance air high quality and create new job alternatives. Moreover, Governor Hochul will search program design options that may assist guarantee potential Cap-and-Make investments prices are predictable and manageable for all customers and companies.
• Local weather Management: New York’s Cap-and-Make investments Program is not going to solely assist obtain New York’s local weather targets, but in addition additional catalyze a nationwide motion in the direction of carbon pricing. To that finish, Governor Hochul is particularly directing DEC and NYSERDA to design a program with the capability to affix different present or future applications, which might decrease the value of the transition to a greener financial system, general.
• Creating Jobs and Preserving Competitiveness: New York’s Cap-and-Make investments Program can be designed to launch new funding in industries meant to create tens of 1000’s of fine paying, family-sustaining jobs of the long run that may raise total communities. From house retrofits to electrical automobile charging installations and inexperienced manufacturing, cap-and-invest proceeds can stimulate the complete clear vitality financial system. Governor Hochul is directing DEC and NYSERDA to design a cost-mitigation program to make sure New York industries will not be put at a aggressive drawback. Moreover, cap-and-invest proceeds can go in the direction of simply transition initiatives that can guarantee no employee is left behind.
• Investing in Deprived Communities: Cap-and-Make investments will prioritize the front-line, deprived communities in our State that for a lot too lengthy have suffered from air pollution and environmental injustice. This system is not going to enable the usage of offsets that might enable high-emitting sources to proceed to pollute, and can as an alternative be designed to make sure air pollution burdens are lowered. Below Governor Hochul’s management, a minimal of 35 %, with a purpose of 40 %, of the advantages of cap-and-invest sources will immediately profit deprived communities, and this system can be designed to make sure air pollution burdens are lowered in frontline communities. These investments will fund essential applications to enhance air high quality, cut back reliance on polluting energy crops, retrofit houses and faculties, and decarbonize our transportation methods, amongst different important efforts to cut back air pollution hotspots.
• Funding a Sustainable Future: Cap-and-Make investments will present funding wanted to assist achievement of New York’s local weather targets. From serving to enterprise house owners electrify operations to funding electrical automobile (EV) chargers and vitality effectivity investments that can cut back vitality payments, cap-and-invest proceeds will filter throughout our state – enhancing livability, chopping transition prices for customers, and creating a greater New York.

Massive-scale greenhouse fuel emitters and distributors of heating and transportation fuels can be required to buy allowances for the emissions related to their actions. By making use of to every metric ton of carbon emissions, the Cap-and-Make investments Program will incentivize customers, companies, and different entities to transition to lower-carbon options. Proceeds will assist the State’s essential investments in local weather mitigation, vitality effectivity, clear transportation, and different tasks, along with funding an annual Local weather Motion Rebate that can be distributed to all New Yorkers to assist mitigate any potential client prices related to this system.

Reaching these rules requires each a rigorous and clear regulatory course of led by DEC and NYSERDA and essential reforms made along with legislative companions to make sure New York’s Cap-and-Make investments Program advantages all customers, retains our financial system’s aggressive benefit whereas maximizing financial returns, and permits for linkages with different jurisdictions.

Rory M. Christian, Chair of the New York State Public Service Fee, mentioned, “Governor Hochul exemplifies management and dedication in her drive to develop a clear vitality financial system that can assist spur financial development and alternative whereas additionally immediately benefiting customers. Her nation-leading Cap-and-Make investments Program is designed to do exactly that.”

New York State Power Analysis and Growth Authority President and CEO and Local weather Motion Council Co-Chair Doreen M. Harris mentioned, “Governor Hochul’s proposal furthers New York’s management by bringing ahead an modern resolution to satisfy the profound challenges introduced by the damaging nature of local weather change. The economywide Cap-and-Make investments Program underscores the essential balancing act we’re endeavor to make sure all New Yorkers profit from this program that can cut back dangerous emissions, particularly in these communities which have too lengthy borne the brunt of local weather change each financially and health-wise, whereas remaining targeted on retaining our companies aggressive and on the forefront of manufacturing technological change. With this Cap and Make investments Program, we’re sending a sign to different states that this transition may be superior in a considerate and collaborative technique to transfer the needle in addressing one of many generational challenges of our time.”

New York State Division of Environmental Conservation Commissioner and Local weather Motion Council Co-Chair Basil Seggos mentioned, “Governor Hochul is exhibiting the world that local weather motion may be formidable, inexpensive, and achievable, and I am proud to work together with her and our state’s foremost local weather consultants to advance this complete Cap-and-Make investments Program. By means of Governor Hochul’s management, the State is poised to enact a powerful and efficient device to fight local weather change, enhance air high quality, spur innovation, defend jobs, and supply the funding wanted for our inexperienced financial system to succeed. DEC appears ahead to working with NYSERDA, the Legislature, and New Yorkers throughout the state to construct this important program which can even prioritize addressing air pollution hotspots impacting the well being and well-being of the state’s deprived communities.”

New York’s Cap-and-Make investments Program will draw from the expertise of comparable and profitable applications throughout the nation and around the globe which have yielded sizable emissions reductions whereas catalyzing the clear vitality financial system. New York’s electrical energy system is already a part of a regional cap-and-invest fashion program, the Regional Greenhouse Fuel Initiative (RGGI). Since RGGI was established in 2005, this system has helped cut back greenhouse gases from energy crops by greater than half and raised almost $6 billion to assist cleaner vitality options amongst its 12 taking part states.