New York’s green policies could cost you lots of green.
Gov. Kathy Hochul’s administration warned that gas prices could soar by $2.23 over the next five years — as she fuels up to fight with fellow Democrats to try to delay the state’s controversial green energy mandates.
An eye-opening memo leaked by Hochul’s camp details stunning projected fuel costs at the pump and for households if a cap-and-invest initiative goes into effect as planned under the Empire State’s climate laws.
New York City households could pay another $2,300 a year in natural gas costs, on top of massive rate increases already put into motion by National Grid, according to the memo from the New York State Energy Research and Development Authority, which was first reported by City & State.
Upstate households would fork over an even more staggering $4,300 per year in those costs, according to the memo.
“For us to meet the goals on the time frame that was set by the legislature, there’s going to be enormous cost to families,” Hochul argued Monday about the state’s 2019 climate law.
The climate law mandates that New York’s electricity generation be 70% zero emissions by 2030, and 100% green by 2040.
But Hochul has admitted those lofty goals are unachievable as large renewable energy projects fail to get off the ground, especially with President Trump’s administration refusing to subsidize green initiatives.
The revelation puts the governor on a crash course with state lawmakers ahead of upcoming budget talks, as Hochul plans to negotiate changes to the climate mandates, with an eye at pushing back the optimistic deadlines. She’s already facing headwinds from liberal state lawmakers and climate activists for signaling she’s ready to put the brakes on the green initiatives.
How the battle plays out could have reverberations in November, when Hochul is up for re-election with New York’s sky-high cost of living expected to be front and center during the campaign.
Even without an additional squeeze, Con Edison, for example, hiked electricity bills on New York City customers by 3.9% this year, with approved increases of 3.3% in 2027 and 3.2% in 2028.
Those hikes are just the latest crunch on Big Apple residents’ already hefty electricity bills, which are roughly 50% higher than the national average and the eighth-highest in the US, according to the Empire Center.
The memo leaked by Hochul’s administration covers the potential costs of a cap-and-invest program — which would charge fossil fuel companies based on the amount of carbon emissions they spew.
Gasoline prices in New York, which currently align with the national $3 per gallon average, would climb above the highest in the US as of Tuesday, according to AAA data.
California currently has the highest gas prices at $4.66 per gallon. The Empire State’s cost by 2031 would be $5.23, based on AAA and the memo’s data.
Umair Mudassar, a 23-year-old Uber driver living in Bath Beach, complained about the $40.72 it cost to fill his tank at a Brooklyn gas station.
“That’s two days’ worth. It’s a hybrid,” he said.
“In New York City, the expense is very high. Everything is getting expensive.”
Tali Omar, 42, a transporter who lives in Astoria, agreed.
“This whole system is f–ked up,” he said as he pumped gas at a Bath Beach BP station.
“You got to have a good job and make money. All the truck drivers and middle-class people can’t afford it.”
Hochul has revealed very little about what the specifics of her proposal could address, but she’s expected to push to stretch the timeframe for when companies start to feel the bite — most likely by controlling when the businesses are forced to buy “allowances” for emissions under the cap-and-invest program.
“It’s going to be a robust conversation,” she said about the looming fight.
Nassau County Executive Bruce Blakeman, the GOP gubernatorial nominee, has already signaled he’ll make utility costs an election issue. He promised to repeal the climate law, if elected.
“This is a direct hit on utility bills, plain and simple,” Blakeman said about the memo.
But lefty lawmakers fumed last week at the prospect of Hochul using her power over state budget negotiations to demand changes to climate programs.
“Protecting New Yorkers from the current and future multibillion-dollar impacts of climate change is not ‘well intentioned’: it is imperative,” state Sen. Pete Harckham (D-Westchester), the chamber’s environmental conservation committee, wrote in a statement.
“It is time to finally reject the false equivalents put forth by the oil and gas industry.”
State Green Party leaders argued Hochul has failed to raise the $10 billion a year necessary to fund the law.
“New York is not on track to meet the rather tepid climate goals due to the lack of leadership by the Hochul administration,” Gloria Mattera, the party’s co-chair, said in a statement.
“Climate change and extreme weather are accelerating, and the world has already largely blown past the 1.5 degrees (Celcius) target to cap global warming.”