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NY lawmakers consider environmental programs in 2025-26 budget

  • / Updated:
  • Edwin Viera 

New York has added certain environmental policies to the latest state budget proposals.

Lawmakers have included language for a cap-and-invest program to curb greenhouse gas emissions across the state’s economy. It would mean some businesses would have to buy allowances for having higher emissions, which, in theory, would prompt them to invest in more carbon-neutral programs.

Julie Tighe, president of the New York League of Conservation Voters, said the approach differs from the Regional Greenhouse Gas Initiative but can also be informed by it.

“I think this is something that would learn from that example,” Tighe explained. “As well as economywide programs in California and Washington state that have been working to help make sure there are investments being made in cleaning our transportation sector, in making sure our buildings are getting cleaner, and shifting us away from fossil fuels.”

But there have been challenges to cap-and-invest programs. Tighe noted it can be a complex program, with most concerns revolving around cost. However, she argued inaction is not an option. Along with reducing emissions, electrifying buildings, which are New York’s largest emissions source, would lower heating and cooling costs.


Supporters of the HEAT Act, which would phase out gas line extensions, said it would also benefit the state’s climate goals and would give the Public Service Commission authority to keep utility companies in line with the state’s climate laws. Tighe acknowledged misinformation about the bill has kept it from being passed so far but emphasized state law maintains an ardent push for gas hookups despite a demand for renewable energy.

“The Public Service law requires utilities to make these connections, even if they would like to be moving in a different direction,” Tighe pointed out. “The law is actually hampering the ability of the state and the utilities to start looking at different ways of heating and cooling our homes.”

Between 2017 and 2021, close to $1 billion in gas hook-up costs were paid for by about 170,000 ratepayers.

No matter what happens with the state budget, New York’s energy future might include the effects of President Donald Trump’s trade war with Canada. New York is one of the three states which could see energy imports terminated, leading to statewide power reductions. Tighe added the trade war’s frenetic pace could affect future energy projects.