Energy Efficiency, GHG Emissions - January 17, 2023
NY Launches Cap-and-Invest Program
Governor Kathy Hochul announced a Cap-and-Invest Program to fund more sustainability for New Yorkers.
The Department of Environmental Conservation and the New York State Energy Research and Development Authority will advance a Cap-and-Invest Program that establishes a declining cap on GHG emissions and maintains the competitiveness of New York industries.
In addition, Governor Hochul will propose legislation to create a universal Climate Action Rebate that is expected to drive more than $1 billion in future cap-and-invest proceeds to New Yorkers every year.
“As we work to drive down polluting emissions across the board, we must make sure that those who have already suffered from environmental injustice no longer bear an unfair share of the burden,” she said in a statement. “Our ambitious Cap-and-Invest Program sets a cap on greenhouse gas emissions and shares the revenues with New Yorkers from disadvantaged communities to help cover utility bills, transportation costs and decarbonization efforts. Through our innovative efforts, we will create a cleaner, greener future while helping New Yorkers with the costs of the transition.”
Beginning immediately, DEC and NYSERDA will design a program that sets an annual cap on the amount of pollution that is permitted to be emitted in New York, as recommended in the recently finalized Climate Action Council Scoping Plan. Every year, the emissions cap will be reduced, setting the State on a trajectory to meet our Climate Act requirements of 40% in emissions by 2030, and at least 85% reduction from 1990 levels by 2050.
Cap-and-Invest will provide funding needed to support achievement of New York’s climate goals,including helping business owners electrify operations to funding electric vehicle (EV) chargers and energy efficiency investments.
Large-scale GHG emitters and distributors of heating and transportation fuels will be required to purchase allowances for the emissions associated with their activities. By applying to each metric ton of carbon emissions, the Cap-and-Invest Program will incentivize consumers, businesses, and other entities to transition to lower-carbon alternatives.
The proceeds will support the State’s critical investments in climate mitigation, energy efficiency, clean transportation, and other projects, in addition to funding an annual Climate Action Rebate that will be distributed to all New Yorkers to help mitigate any potential consumer costs associated with the program.
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