Why we need a pragmatic path for the future of NY's climate actMichael N. Romita |
When New York enacted the Climate Leadership and Community Protection Act of 2019, CLCPA or Climate Act for short, it set some of the most ambitious climate goals in the country. The law codified both short and long-term targets for reducing statewide greenhouse gas emissions and transitioning to renewable energy.
We cannot meet NY's goals by 2030
Although New York has made substantial progress towards these goals, a lot has happened in the ensuing years to slow us down. A global pandemic disrupted supply chains. A federal policy pivot is rolling back incentives. Tariffs and geopolitical tensions are driving up costs. Projected demand for power is rising sharply with the expansion of artificial intelligence and data centers. It’s pretty clear that the Climate Act’s short-term targets, those that kick in by 2030, will not be met.
The current energy debate in Albany is shaped around short-range affordability, and these are very legitimate concerns. But taken in isolation, they are also myopic. Economic projections, particularly those over multiple business cycles, are both easily manipulated and inherently uncertain. Moreover, these analyses often leave out the net costs of inaction which include job and wage losses, extreme heat, flood damage, infrastructure repair, higher insurance premiums and poorer health. It is worth a reminder that the state's Climate Action Council initially determined that the cost of inaction outweighed the cost of implementation by more than one hundred billion dollars.
While more immediate cost concerns are paramount, Albany must also grapple with the state’s self-inflicted reasons why more progress has not been made and be both clear-eyed and forward-thinking about what needs to happen now.
It would be foolishly fatalistic to amend now the Climate Act’s long-term goals that will not apply for 15 years or longer. The state has made a commitment to transition to cleaner sources of energy. The upfront costs are high (as are the costs of maintaining the current energy complex). However, once built, renewable energy is a lot cheaper to produce than traditional fossil fuels, and its price is both more stable and less vulnerable to geopolitics and global market disruptions.
Nevertheless, it would be equally imprudent to ignore the infeasibility of meeting the approaching emissions and production targets as the state rolls towards noncompliance. If the state is to avoid the legal jeopardy of missing the 2030 targets, the Climate Act will need to be amended either by adjusting those targets or by pushing them out. These modifications should be accompanied by guardrails to ensure that New York gets back on track to meet its eventual goals.
How can New York move forward?
That means implementing cap and invest by relying upon the fundamental recommendations presented by the state’s Climate Action Council. It means accelerating large-scale renewable energy projects and transmission infrastructure, in particular. Impediments include rigid contracting demands, prolonged interconnection delays, and siting and operationalization setbacks. It means aligning emissions accounting methodology with the rest of the country. It means ensuring that the costs of unusually high, energy intensive emerging technologies like AI data centers are not unfairly externalized. And it means encouraging smarter consumer choices relating to energy efficient buildings and transportation. Meanwhile, leaders must make a better case for selling the long-term financial benefits of a just transition while simultaneously providing short term relief targeted to those utility ratepayers most in need of assistance.
Politics drives policy. Policy drives progress. Ambition launched New York’s energy transition. Execution will define its success.
Michael N. Romita is president and CEO of the Westchester County Association, the region’s professional roundtable and the leading economic development and business advocacy organization in the county.