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THE COSTS TO NEW YORKERS OF CUOMO’S CRAZY CLIMATE LAW KEEP RISING
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Published March 13, 2024, 6:43 p.m. ET
Former Gov. Andrew Cuomo signed the Climate Leadership and Community Protection
Act into law in 2019. Photo by Scott Heins/Getty Images
State lawmakers voted for major cuts in greenhouse-gas emissions and massive
buildouts of wind turbines, solar panels, power lines and batteries by 2030
without knowing how it would work, let alone what it would cost.
The 2019 bill, the Climate Leadership and Community Protection Act, essentially
wrote Gov. Andrew Cuomo’s executive branch a blank check, allowing every state
agency to weigh climate concerns in every major decision and giving regulators
the power to effectively eliminate emissions in nearly every corner of the
economy.
With New York halfway to that 2030 deadline, the true cost of the program is
coming into view — and it’s not pretty.
A state commission two years ago laid out a robust plan for banning gas
appliances, heating nearly every home with electricity and mandating other major
changes over the next three decades.
It made a surprising claim: This “deep decarbonization” of the economy wouldn’t
just cover its own costs; it would produce $115 billion to $130 billion in “net
benefit.”
It was too good to be true.
EXPLORE MORE
WHY VOTERS HATE BIDEN’S ECONOMY, DEMS LOSING ASIANS, TOO AND OTHER COMMENTARY
BILLIE EILISH SLAMS TAYLOR SWIFT FANS AFTER ‘WASTEFUL’ PACKAGING REMARKS:
‘SHEESH’
PROOF ECO-EXTREMISTS DON’T WANT TO FIX THE PROBLEM, THEY WANT TO TEAR DOWN
SOCIETY
Peeling back officials’ creative accounting revealed, for one thing, they
assumed and counted financial benefits for humanity (not just New Yorkers) of
lowered emissions.
Key parts were made on overly optimistic if not flat-out-bad assumptions.
Drilling deeper revealed officials expect New Yorkers to incur $4.9 trillion in
new expenses between 2020 and 2050 because of the act, offset by $4.3 trillion
in “avoided” spending on things like heating oil and furnaces.
SEE ALSO
editorial
THE WHEELS ARE COMING OFF NEW YORK’S INSANE ALTERNATE-ENERGY PLANS
The difference — around $600 billion — represents the added cost for families
and businesses to comply with the law.
Those costs will come in the form of higher fuel prices (a new tax is planned
for fuel purchases next year), higher electricity rates (through which residents
are already paying for new wind and solar projects upstate) and higher property
taxes (as local governments and schools have to comply), to name a few.
The $600 billion figure also assumes the state can hit its targets, both for
costs and savings.
But state government has a terrible track record on predicting the future and
keeping things on budget.
Officials failed, among other things, to predict the recent popularity of
natural gas, which reduced both emissions and energy prices.
If new climate-law costs run 5% higher and offset costs run 5% lower, the price
tag surges to more than $1 trillion over the 30-year period.
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These figures seem farcically large, but imagine replacing most downstate power
plants with enough batteries to power the city and suburbs for four days at a
time — as the climate act requires.
What data the state have published put that cost alone north of $100 billion,
even with battery prices dropping by half between now and 2040.
Adding the costs of replacing the heating systems of nearly every New York home
and building (and upgrading the insulation) pushes things further into the
billions.
SEE ALSO
editorial
BRACE YOURSELF FOR MOUNTAINS OF PAIN AND MISERY UNDER GOV. HOCHUL’S
ZERO-EMISSIONS FANTASY PLAN
What’s worse, state agencies are putting New York on the hook for tens of
billions of dollars over the next quarter-century through subsidy agreements
with offshore-wind and power-line developers.
The law requires utilities to pass those costs to electricity customers (and
regulators have said they can’t be shown on electric bills).
And the state still hasn’t said how high electric bills will climb when they’re
done cutting these deals.
New York could still reduce emissions through a less expensive and more
predictable process if state lawmakers get back behind the wheel.
Legislators, not bureaucrats, can and should be making decisions about what
taxes and policies Albany uses to tackle emissions.
As the Empire Center explains in a new report, there are many ways senators and
assemblymembers can put guardrails around the climate law to prevent what are
becoming clear threats to electricity’s affordability and reliability — and to
New York’s economic health — without giving up on the state’s climate goals.
The law’s proponents embraced its self-executing nature because it would force
unpopular, disruptive and even dangerous policies to deliver lower emissions no
matter what.
They think the best thing would be for lawmakers to do nothing and allow the
process to run its course.
78
What do you think? Post a comment.
The best thing for the rest of us, of course, would be something else.
Ken Girardin is the Empire Center for Public Policy’s research director.
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* 3/13/24
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