It's starting to feel like an Empire State battle for drivers.
Gov. Cathy Hochul is expected to announce a push to fight pollution in her State of the State address on Tuesday, and critics say it could make it more expensive to heat homes and push gas prices up as much as 22 cents a gallon. I'm warning you.
Comprehensive “cap and invest” program — This comes on the heels of a new $9 congestion charge to enter Manhattan — It aims to reduce carbon emissions by forcing oil companies to pay for greenhouse gases, but the industry giants are likely to pass the move on to consumers.
“They have to raise the price of petroleum products. I don't see how raising costs is going to make New York more affordable,” said a former head of the Public Service Commission, the state's public service regulator. member John Howard said.
“That's another reason to leave New York.”
Proceeds from the scheme will be used to fund green initiatives such as building electrification in the government's latest push against fossil fuel companies, but some fear it will target residents.
Last month, Hochul approved controversial legislation that would cost the country a staggering $75 billion for oil, gas and coal companies that contribute to carbon emissions and climate change.
“Undercap and investment motorists could pay an additional 12 cents per gallon at the pump next year and 22 cents per gallon as early as 2027,” the Upstate United organization said in an analysis. claims.
According to the analysis, the pump increase would be $68.8 million in Suffolk County, $51.1 million in Nassau, $26.6 million in Westchester, $26.38 million in Erie, $22.7 million in Onondaga, $21.4 million in Monroe and $1,979 in Albany. It will be worth 10,000 dollars.
“Consumers will also be paying more for home heating fuels such as natural gas and propane.”
And there is oil,” the group added.
According to the study, New York drivers currently pay the ninth-highest gas prices in the nation, but the cap-and-invest program would move them up to sixth place.
As New York State transitions from fossil fuels to clean energy, the governor will likely provide subsidies to low-income New Yorkers to offset sticker shock.
Hochul's office declined to comment on what she is thinking ahead of Tuesday's speech in Albany laying out her policy agenda.
“Governor Hochul is focused on reducing the cost of living and putting money back into the pockets of New Yorkers through rebates and tax credits,” said Avi Small, a spokeswoman for Governor Hochul. “The governor is scheduled to release his full State of the State agenda on Tuesday.”
But the $230 billion national budget approved in 2023 includes a “cap-and-invest” plan to reduce carbon emissions, and Hochul administration officials at the time said it would be acknowledged that this could lead to a rise in energy costs.
Former state Department of Environmental Conservation Secretary Basil Seggos said at the time that gasoline prices could rise by 62 cents a gallon and natural gas prices could rise by 80%.
Seggos said that as fuel producers pay for their carbon emissions under the plan, prices would rise and the costs would be passed on to consumers.
The cap-and-invest plan would limit the total amount of carbon emissions allowed across the state and the number of potential carbon credits that companies could bid on in exchange for reducing their emissions. The plan will also include recommendations to help New Yorkers cope with the resulting price increases.
The program is designed to help meet the state's Climate Leadership and Community Protection Act's ambitious goal of reducing greenhouse gas (GHG) emissions by 85% by 2050.
A carbon price cap creates a market for polluting companies to buy or trade the right to generate limited emissions, giving them more flexibility in meeting emissions requirements and generating returns on climate investments.
Proceeds from the carbon auction will go to the Climate Action Fund, which funds green energy programs to help the state meet its goal of reducing greenhouse gas emissions by 85% by 2050 under a 2019 state law. be done.
The state estimates it will cost at least $15 billion a year in both private and public investment to comply with the law and reach net-zero emissions by 2050.
This was reported by the media “New York Focus''. Detailed overview Caps and investment plans.
The report found that programs in California and Washington increased gas prices by about 27 cents a gallon, but lower-income New Yorkers could end up getting rebates, while middle-income families could see lower gas prices. He noted that there will likely be a small increase of about $120 per year in the first year. Implement it in stages.
The cap and investment plan would limit the total amount of carbon emissions allowed across the state.
Carbon prices for emissions would be set through state-run auctions, allowing companies to bid for “allowances” or carbon credits for emitting, say, a ton of pollutants in exchange for reducing emissions.
Polluters such as utilities and factories must purchase enough allowances each year to cover their emissions.
