Who wins the green energy vs. affordability clash?

The goal of keeping New York’s aggressive climate change agenda on track is bumping into the need to keep energy affordable in a turbulent economy.

The Trump administration has abandoned federal investment in green energy and seeks to stop offshore wind projects, while the cost of building a minimally polluting infrastructure has dramatically increased. Ratepayers already are stretched to the limit by higher electric bills and stressed by inflation.

Under the state’s landmark Climate Leadership and Community Protection Act (CLCPA), New York is required by 2030 to produce 70% of its electricity from renewables and cut greenhouse gas emissions by 40% from 1990 levels. By 2040, the state must produce electricity with zero emissions. That made for great headlines when the law was adopted, pre-pandemic, in 2019. But reality has caught up. Last year Gov. Kathy Hochul began to acknowledge that the 2030 goal was likely unattainable and now she wants those deadlines extended.

When New York’s energy agency released a memo in February projecting that ratepayers would pay over $4,000 a year more if the state stayed on its current course, the reaction was a step below apoplectic. Homeowners and businesses balked, environmentalists fretted and politicians squabbled.

Steady leadership is needed from Hochul and the State Legislature to find a path that doesn’t burden struggling New Yorkers while continuing to reduce our reliance on fossil fuels.

As Albany settles into its yearly budget process, the issue must be front and center. Hochul last week said she wants the legislature to address it during fiscal negotiations, which gives her more leverage.

HOMEOWNERS’ COSTS

The New York State Energy Research and Development Authority’s memo is concerning. Upstate homeowners using natural gas could pay an additional $4,260 each year while those using heating oil could pay an additional $4,152 if the state’s climate mandate stays on track. New York City homeowners who use natural gas would pay an extra $2,340. No figures were provided for Long Island homeowners. However, electric customers here paid $9.65 a month in CLCPA-related charges in 2024, according to a Newsday news division story. Utility costs for small and medium commercial businesses could rise by 46%, the memo says.

These are estimates that omit a few key factors such as recent geopolitical events that raise energy costs and the federal government’s green energy pullback. But the fact remains that barring intervention, enacting the current emissions standards will cost New Yorkers thousands more in energy bills.

The dispute is already in litigation. New York missed the Jan. 1, 2024, deadline to create a final plan to meet the climate law’s goals and environmental groups sued.

So, how will Hochul and the legislature address the affordability cliff while trying to keep the goals intact, albeit delayed? How about selling green energy bonds or using revenue from carbon pricing to avoid consumers having to directly pick up the tab. A good compromise would be to extend the deadline for meeting emissions limits for five years. Or the state’s rigorous 20-year measure for global warming potential could be changed to the federal government’s 100-year measure. The shorter timeline means cleaner green projects cost more.

CHEAPER ENERGY

Environmentalists say implementing green programs will make energy cheaper and save homeowners and small businesses money while mitigating climate change. But the lower costs only come after expensive initial outlays on infrastructure.

There’s no denying New York needs more power. Last June 24, the state came close to declaring an energy emergency as a four-day heat wave drained power reserves. To avoid a repeat, Hochul advocates maintaining an “all-of-the-above” approach that includes wind, solar, nuclear, hydro and fossil fuels.

That’s become an increasingly impossible task — for reasons from inflation to supply chain price hikes to the federal government’s all-out war on renewables, including eliminating tax rebates and the Environmental Protection Agency making it more difficult to regulate greenhouse gas emissions. Energy prices were increasing long before the Iran war started. The construction of new battery energy storage systems is being stonewalled on Long Island.

The ambitious goals of the CLCPA were adopted in New York to eliminate the backsliding we’re seeing now because the climate change threat is existential. Divesting from fossil fuels would be cheaper and strategically better for the nation, but that requires a willing partner in the federal government. If Hochul’s all-of-the-above for powering the grid is to work, the dependency on fossil fuels must be reduced on a specific timetable. Even in 2026, Long Island’s grid remains overwhelmingly dependent on natural gas, with National Grid considering repowering its three biggest, gas-fired plants.

Electricity is still expensive and dirty, but it doesn’t have to be. This past week, the Assembly proposed a one-time rebate check to help New Yorkers pay for electricity. Households making under $150,000 would get $500, while those who earn more, but still under $300,000, would receive $300. One-shots like this may help with the transition, but only as a temporary fix to help reach the state’s goals.

New York is in the “in-between” phase of adopting green energy as a vehicle for cheaper energy and a cleaner planet. The state should adapt to the cost challenges of the moment without losing sight of the greater goal.