Hochul says plan to amend climate law won’t lower utility rates

Gov. Kathy Hochul wants to help New Yorkers with high utility rates by delaying the state’s climate law mandates. But that doesn’t mean relief for the high prices ratepayers deal with today is on the horizon.

The governor told reporters on Wednesday that the changes she wants made to the 2019 Climate Leadership and Community Protection Act are meant to prevent future rate hikes, not reduce costs hitting people today. “The false narrative is that I'm telling people their utility rates are higher because of the CLCPA,” Hochul said. “That would be a stupid thing to say, because it's not in effect yet … I’m trying to stop your utility bills from going higher by rolling this out with a longer runway.”

Hochul’s comments Wednesday came after she made a similar point during an energy-related press conference on Monday in Buffalo. “Now I'm going to be very clear: the high utility costs we're experiencing now are not because of this, because it's not in effect yet,” she said earlier this week.

The state’s climate law is technically in effect, but key regulations to meet the deadlines – such as a 40% reduction to carbon emissions by 2030 – are not yet in place. Hochul had proposed a cap-and-invest program to both lower emissions and raise money for green energy projects, but she has repeatedly delayed implementing the rules. Environmental advocates successfully sued the state over its failure to move ahead with key parts of the climate law, with a judge ruling state officials had violated statute through inaction.

Hochul referenced that ruling during the Monday press conference in Buffalo. “A judge is telling us that we have to comply with this even though we're not ready for it, and if we do that, I can tell you sure as I'm standing here, our costs will go up dramatically,” she said.

Some groups that applauded Hochul when she first indicated her desire to roll back the climate law took issue with the governor’s new comments on Wednesday. “It is troubling that the CLCPA continues to be confused with Cap-and-Invest,” said Justin Wilcox, executive director of Upstate United. “Not only is the CLCPA being implemented, but the (Public Service Commission) has already approved tens of billions of dollars to be passed along to ratepayers.” He pointed to recent reports from the state Department of Public Services that found CLCPA-related charges in New Yorkers’ energy bills “jumped sharply” between 2023 and 2024.

The Business Council of New York State agreed that the most significant costs associated with the CLCPA have not hit yet, but added that the energy price discussion is far more nuanced. “There are many factors that impact the state’s high energy costs, including those beyond the state’s control,” said Paul Zuber, the group’s executive director. “The CLCPA has had a direct and indirect impact on the energy sector, including on decisions to invest in new resources.” He still concurred that the focus should be mitigating future costs increases under the law.

Republicans also decried Hochul’s new comments. “With all due respect to the Governor, telling New Yorkers that the CLCPA is not responsible for their skyrocketing utility bills is simply not accurate,” said Assembly Member Scott Gray. “Since the passage of the CLCPA in 2019, residential electricity prices in New York have risen 58% – outpacing the national average of 36%. That is not a coincidence.”

Hochul has never explicitly said her bid to change the state’s climate law would lower the high utility rates New Yorkers pay today, but her past statements have alluded to those costs and focused on the issue of affordability. “I don't think it's a surprise to anybody that affordability, when it comes to energy costs, is a real issue right now,” she told reporters last month at an unrelated press conference. Hochul made that comment shortly before City & State first reported on a memo from the New York State Energy Research and Development Authority that predicted thousands of dollars worth of rate increases on the horizon if the CLCPA was aggressively implemented under the current timeframe. 

“Just talk to anybody about what their utility bill was in the last couple of weeks,” Hochul added at the same press conference. “It is staggering, and we cannot just tune out those cries for help from New Yorkers who are just getting crushed under the weight of this." She has made similar comments about the costs facing residents today while discussing the climate law, skirting around the idea that her plan is meant to prevent future increases rather than lower current costs.

Climate and environmental advocates pounced on Hochul’s new comments as evidence the climate law does not need tweaking. “We agree with the Governor, and the volatility of fossil fuel markets continues to be the primary driver of utility price spikes,” said Julie Tighe, president of the New York League of Conservation Voters. “That’s why we need to transition to clean and homegrown energy sources, which we know the governor is very supportive of.”  

Liz Moran, New York policy advocate for Earthjustice, said Hochul essentially negated her own rationale for delaying the cap-and-invest program. “If reneging on the climate law won’t actually lower anyone’s bills, why is she doing it?” Moran said. “The war (in Iran) is driving up gas prices, and the Governor’s plan is to stick New Yorkers’ with the bill.”

Hochul defended her commitment to the state’s bold climate goals, insisting she just wants more time to reach them. “Am I the staunchest environmentalist and fighter of climate change in New York's history? Yes,” the governor said on Wednesday. She cited nearly $100 billion in clean energy investments she has made in just the time she has been governor. “I have a long list if anybody wants to read,” Hochul said. “I am proud of that.”

The governor said she has stood up to President Donald Trump’s attempts to pressure her to allow fracking in New York again. “He's real unhappy with us because I won't do fracking again,” Hochul said. “Yes, the fracking debate is alive and well in his head.” She also referenced the multiple appeals she has made to the president and lawsuits the state has brought to continue critical green energy projects in the face of a hostile federal government.

Although she has spoken extensively about the need to amend the 2019 climate law in the past month, Hochul still has not advanced any specific language for her proposal. Last week, she said she would like to address the issue in this year’s state budget, which is due April 1. And Hochul said on Monday she expects to release a proposal this week.