Gov. Kathy Hochul presses ahead with plans to boost clean power in New York State

ALBANY — Gov. Kathy Hochul made reliable, affordable and zero-emission energy a priority in her 2026 policy speech Tuesday, with plans to build out new nuclear power.

The Democrat, who is running for reelection, also plans to combat utility costs for consumers, boost the use of solar panels in schools and on farmland, and incentivize the installation of electric vehicle charging stations through a tax exemption.

"We can make energy more affordable and reliable by still leading the nation in sustainable investments," Hochul said during her State of the State address.

She also proposed funding for water infrastructure and clean drinking water as well as for protecting Long Island communities against erosion and floods through coastal protection grants.

Her proposal also includes launching a downstate-based semiconductor chip design center as an incubator for early stage firms, training chip designers and connecting startups with larger manufacturers of chips throughout the state.

Details on how the governor plans to pay for her agenda as well as fill a $4.2 billion budget gap for fiscal 2027, which begins April 1, will be released in her budget proposal next week.

Hochul's proposals come as the state aims to meet an ambitious climate goal to get all electricity from emission-free sources by 2040 and reduce economywide emissions by 85% from 1990 levels by 2050.

Meanwhile, energy costs have continued to rise and the state faces interventions from the Trump administration, which has aimed to block construction of New York’s offshore wind projects.

Hochul announced plans Tuesday to build five gigawatts of nuclear power to boost the state’s emission-free energy, up from her proposal of one gigawatt last year.

"That's more nuclear power than we've built anywhere in the United States in the last 30 years," Hochul said.

To support the delivery of those reactors and other infrastructure projects, Hochul proposed a new program to streamline and speed up permitting processes. She also called for increased protections, particularly with expanded cybersecurity, as the state looks to modernize the electric grid.

She additionally called for expanding the use of tools such as smart thermostats by giving consumers who use them $25 off their utility bill per month in the first year.

Hochul said she plans to address high utility costs through a multipronged approach that includes reducing hidden fees, modernizing utility regulations and requiring large energy users such as data centers to pay their fair share.

She also wants to provide additional funds for schools to install solar panels and help increase partnerships between farmers and renewable energy developers to put solar panels on agricultural land.

Hochul also looks to reduce emissions by increasing the use of electric vehicles. Her plan would create a sales tax exemption on the retail sale of the electricity used to recharge an electric vehicle by a commercial charging station.

The governor called for increased investments in water infrastructure, making funding available for communities to build sewers and infrastructure that’s needed for new housing as well as addressing water contamination threats to drinking water, such as lead and harmful forever chemicals known as PFAS.