Development of a greenhouse gas emissions cap-and-invest system first proposed two years ago is getting pushed further down the road in New York.

Gov. Kathy Hochul (D) made no mention of the controversial concept in her State of the State address Jan. 14, and there is only limited mention of it in her printed version.

The program has been in development for well over a year but has bogged down amid concerns that the billions of dollars to be extracted from greenhouse gas-emitting industries could translate to higher prices, job losses or other negative impacts for New Yorkers.

Much of the governor’s address, in fact, was devoted to proposals that would reduce costs or increase financial benefits for low- and middle-income New Yorkers.

Energy and climate were the very last topics in both her speech and the accompanying playbook.

In that playbook, it sounds like New York is doing at least a partial reset on cap-and-invest planning: In the coming months, it says, the lead agencies will “take steps forward on developing the cap-and-invest program, proposing new reporting regulations to gather information on emissions sources, while creating more space and time for public transparency and a robust investment planning process.”

Hochul writes: “New York needs to get the transition right and keep our state affordable for families.”

Ostensibly, the staff at various agencies have been doing just that since mid-2023. But finding common ground apparently has been difficult. (See Opposing Sides Want to Speed, Slow NY Cap-and-invest.)

The State of the State is the governor’s public opening hand in the lengthy, intertwined process by which the coming year’s budget and many key policy issues will be decided.

This year, Hochul has no fewer than 201 proposals in her plan, but like the thousands of proposals submitted by legislators, many may be modified or killed during negotiations before the April 1 start of the next fiscal year, and some may not even reach the starting line.

Hochul has several other proposals in the energy and environmental sectors.

Climate Investment

Hochul seeks more than $1 billion for creating jobs, reducing pollution and slashing household energy bills in what she called the largest single climate investment in state history.

This will pay for retrofits of housing; incentives for heat pump installation; making public infrastructure serve as “hubs of sustainability,” such as by building thermal energy networks on state-run college campuses; expanding green transportation options; and supporting businesses of all sizes in decarbonization efforts.

Nuclear

It has been apparent for a while that New York officials increasingly are interested in advanced nuclear power, even as they framed the polarizing concept in carefully neutral tones.

Hochul calls for creation of a “Master Plan for Responsible Advanced Nuclear Development,” and the state on Jan. 14 issued a “Blueprint for Consideration of Advanced Nuclear Energy Technologies.”

Hochul said in a news release that New York will lead a multistate initiative on advanced nuclear energy expected to launch in February.

Also, she said the state will support Constellation Energy Corp. in its pursuit of federal grant funding to support exploration of adding one or more advanced reactors at its Nine Mile Point facility in northern New York.

Public Power

Hochul said she will direct state agencies to enter into contracts with the New York Power Authority in pursuit of a 100% renewable energy goal for state agencies by 2030. This will include at least 500 MW of generation.

This is separate from — but not unrelated to — another NYPA initiative.

NYPA has a tentative framework for 3.5 GW of renewable energy projects, the first tranche of proposals under its recently expanded authority as a developer of renewable energy alone or in partnership with the private sector.

NYPA itself acknowledges that even if all those proposals go forward, many can be expected to be lost to the normal industry attrition process.

Public power advocates call for NYPA to aim much higher — 15 GW instead of 3.5 GW — as President Biden is replaced by President Trump and leadership of the energy transition falls to states. They hoped to hear more in the State of the State.

Reactions

Hochul’s non-action Jan. 14 on cap-and-invest apparently caught some supporters of the system by surprise.

Two separate reports were issued Jan. 13 by Switchbox and Resources for the Future, each commissioned by separate sets of climate advocates and each explaining in great detail the benefits that such a system would provide to communities and households through reduced emissions and financial assistance.

After the State of the State address, the Environmental Defense Fund’s Kate Courtin said in a news release:

“At a time when states with climate commitments should be stepping up to lead, New York is stepping back. By continuing to kick cap-and-invest down the road, Gov. Hochul is delaying the benefits that New Yorkers want — cleaner air, lower energy bills and more resilient communities. Meanwhile, the cost burdens from climate change-fueled disasters, like excessive flooding and severe storms, will continue to mount.”

Eric Walker at WE ACT for Environmental Justice had similar thoughts, and also criticized Hochul’s proposed $1 billion climate investment, which would be funded through tax dollars. He said via email:

“Today’s announcement is really a minimalist first step toward broader climate action. Instead of taking bold action, Gov. Hochul announced a plan that fails to meet the scale of the challenges we face. Worse, a billion-dollar state appropriation shifts the financial burden to struggling New Yorkers instead of holding the corporations responsible for pollution accountable. A robust cap-and-invest program is the long-term solution New Yorkers need to tackle pollution, improve air quality and deliver a just transition for our communities.”

Public power advocates also panned Hochul’s proposal, and they staged a protest outside the State of the State.

“The choice is clear, Gov. Hochul, New York can build 15 GW of public renewables or the state, like so much of the world, will continue to burn,” said Teddy Ogborn, an organizer with Planet Over Profit who was arrested during the demonstration. “With a climate denier as president, it’s more important than ever for New York to lead the way. New York can still meet its legally mandated climate targets, but Gov. Hochul must take action today.”

NYPA President Justin Driscoll, by contrast, was supportive. In a prepared statement, he said: “Gov. Hochul’s historic investment in climate mitigation is crucial for New York as we prepare for the ever more frequent 100-year storms and climate challenges. NYPA is proud to support this investment, work with organized labor and our partners in government to bring public power to public spaces and serve as a trusted advisor delivering innovative solutions to power New York into the future.”