The Path to Cap-and-Invest
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Signed into law in July 2019, the Climate Leadership and Community Protection Act (CLCPA) is among the nation’s most ambitious climate acts establishing renewable, clean energy, and legally binding emissions-reduction standards including net-zero economywide decarbonization. Specific power sector goals include:
70% renewable generation by 2030;
100% zero-emission electricity supply by 2040.
Additionally, the CLCPA calls for the creation of a Climate Action Council (CAC) tasked with the creation of an implementation plan to achieve the CLCPA’s laudable goals to combat climate change.
Approved in December 2022, a 22-member appointed body known as the Climate Action Council (CAC), concluded more two years of deliberations, working groups and public engagement to approve its final Scoping Plan – a roadmap to achieve the State’s nation-leading clean energy and climate goals.
Among other things, the CAC’s Scoping Plan “…recommends implementation of an economywide cap-and-invest program that would ensure the Climate Act’s emission limits are met, while simultaneously prioritizing reduction of co-pollutants in Disadvantaged Communities and supporting clean technology market development. By establishing a consistent market signal across all economic sectors, an economywide program will enable individuals and businesses to make decisions that reduce their emissions and yield the necessary emission reductions. Revenues generated by the program will leverage federal programs and other funding sources to implement policies identified in this Scoping Plan, including investments to benefit Disadvantaged Communities.”
In January 2023, as part of Governor Hochul's second State of the State Address, the Governor advances the CAC’s Cap-and-Invest recommendation and directs the New York State Energy Research Development Authority (NYSERDA) and the Department of Environmental Conservation (DEC) to design an economywide emission reduction program with robust stakeholder input.
Throughout 2023 and into 2024, DEC & NYSERA host a series of public engagement webinars and workshops to gather feedback to inform the development of program regulations to implement the Cap-and-Invest Program.
The report states that New York is falling short of the renewable and clean energy goals established by the CLCPA in 2019, reinforcing that we need every tool at our disposal to achieve a carbon-free New York.
With the public engagement sessions complete, DEC and NYSERDA is assessing the provided input and currently developing their formal Cap-and-Invest regulatory proposal, expected to be released sometime in 2024. A formal comment period and hearings will ensue as the DEC promulgates to-be-determined final regulations. Additional information can be found at: New York Cap-and-Invest - New York's Climate Leadership & Community Protection Act (ny.gov)