“NY Gov. Hochul Pauses Cap-n-Tax Plan; Angry Enviros Resign Panel”, By JIM WILLIS

“In June 2019, New York State legislature passed a horrific “energy” bill that was later signed into law by then-Gov. Andrew Cuomo (see New York Pulls the Trigger, Commits Energy Suicide with New Law.

NY Gov. Hochul Pauses Cap-n-Tax Plan; Angry Enviros Resign Panel

ANTI-DRILLING/FOSSIL FUEL | INDUSTRYWIDE ISSUES | NEW YORK | REGULATION | STATEWIDE NY

In June 2019, the New York State legislature passed a horrific “energy” bill that was later signed into law by then-Gov. Andrew Cuomo (see New York Pulls the Trigger, Commits Energy Suicide with New Law). The law, called the Climate Leadership and Community Protection Act (or “Climate Act”), forces a reduction in so-called greenhouse gas emissions of 40% by 2030, and at least 85% from 1990 levels by 2050. It will force the end of burning natural gas and fuel oil (and wood) to heat homes and businesses. Current Gov. Kathy Hochul is now facing the buzzsaw of reality in implementing specific actions to meet those goals. She recently “shelved” a plan to implement a “cap and invest” plan that would force the state to reduce GHGs to comply with the Climate Act.

The state Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) are designing a program that sets an annual cap on the amount of greenhouse gas “pollution” that is permitted to be emitted in New York. The “cap and invest” (meaning carbon tax) proposal was drafted and ready to go by the DEC and NYSERDA. Just “days” before they were going to transmit the plan to Gov. Hochul, setting off an official review process, Hochul pushed the pause button and stopped it. She can’t afford energy prices going even higher.

There’s no telling how long the plan will remain on the shelf, waiting for the go-ahead signal from Hochul. What’s clear to everyone is that she is scared about skyrocketing energy costs in the state, which are skyrocketing because of her policies in rejecting gas-fired power. At this point, Hochul appears to be flailing politically, trying not to cause any further increases in energy prices (or, worse yet, blackouts). So she blocked the “cap and invest” plan from advancing while she and her political advisors figure out how to get themselves out of this hole.

State officials completed work on draft regulations to implement Gov. Kathy Hochul’s pollution pricing and climate funding program just days before the governor chose to delay it. Staff from NYSERDA and the Department of Environmental Conservation sent completed draft regulations for the cap-and-trade style program to Hochul’s office on Jan. 9, according to emails reviewed by POLITICO. The draft rules for “cap and invest,” which were originally set for an early release in mid-January and formal publication in mid-February, would still have been subject to public comment.

In response to POLITICO’s questions about the governor’s decision, Hochul spokesperson Paul DeMichele pointed to her proposal for $1 billion in climate spending in this year’s budget and said that money would accelerate clean energy investments while agencies continue with the rulemaking process “beginning with issuing reporting regulations in the coming months.”

“It’s standard operating procedure for State agencies to prepare multiple contingency plans and policy options — in fact, it would be irresponsible not to evaluate every possible scenario,” DeMichele said.

The intense effort by agency staff to implement the program before the end of this year, followed by Hochul’s abrupt decision to shelve key parts of it for an undisclosed period echoes the governor’s reversal on congestion pricing. Her shift on cap and invest has brought some environmentalists to a breaking point with the unpopular Democratic governor as they brace for President Donald Trump’s dismantling of federal climate policies.

“I’m not sure anyone in the climate world is seeing anything but a cynical governor who is trying to sound bite her way through this when what we need is funding,” said Eddie Bautista, the executive director of the New York City Environmental Justice Alliance, who joined two other advocates in publicly rebuking Hochul by resigning from a state climate justice panel.*

Speaking of the three environmental justice warriors who quit:

Three prominent environmental justice leaders criticized Gov. Kathy Hochul for failing to prioritize climate action as they resigned from a state panel Tuesday.

The resigning members of the Climate Justice Working Group, which was created by the 2019 climate law and consists of some agency heads and environmental justice members selected by the governor, wrote in a letter that they could no longer serve “in good conscience” and cited Hochul’s “backpedaling and her lack of vision, commitment and focus.”*

Copy of the letter the climateers sent to Hochul in resigning from the Working Group:

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*POLITICO – Weekly New York & New Jersey Energy/Marie J. French, Ry Rivard (Jan 27, 2025) – Agency staff completed work on ‘cap and invest’ draft rules before delay