New York Confirms CLCPA will Increase Energy Costs

In 2019, New York passed the Climate Leadership and Community Protection Act (CLCPA) that requires the state to reduce economy-wide GHG emissions 40% by 2030 and 85% by 2050 from baseline emissions in 1990.

Recently, the New York State Energy Research and Development Authority (NYSERDA), which is a state agency that analyzes energy and environmental issues, sent a memo to Governor Kathy Hochul stating that, unless policy changes are implemented, the CLCPA will increase the cost of thermal and transportation fuels for both homeowners and commercial businesses, with much of the increased cost due to the creation of an assessment (i.e., tax) on applicable carbon emissions under the Cap-and-Invest program.

NYSERDA states that the most impacted households would be those living upstate who rely on delivered fuel for heating applications and have two vehicles, as they would see annual cost increases of more than $4,100. In addition, small and medium businesses would see their thermal and transportation costs rise by thousands of dollars as well.

Electricity and heating prices in the Empire State are already well above national averages, and if Albany plows forward with full implementation of the CLCPA and associated programs, New York State will simply become even more unaffordable for consumers and businesses. 

As of the 2024 industry sales report, New York is the 3^rd largest state propane market in the country, with 420 million gallons of fuel sold. For more information, contact NPGA’s Senior Director of State Advocacy & Affairs, Jacob Peterson.