GUEST COLUMN: New York’s Climate Law is deeply flawed and needs to be fixed.
In a recent opinion piece published here, three State Senators claimed the Climate Leadership and Community Protection Act (CLPCPA) is working and not only needs no adjustment but should essentially be ramped up. They blame rate hikes by utility companies, high natural gas supply prices and the Hochul administration’s linking of the law to Cap and Invest as the culprits.
Not only are the Senators incorrect, but they are the last people who should be speaking out on this issue. As chairs of the relevant committees, they are largely responsible for causing this problem in the first place. While 26 of their colleagues joined them in a letter on this topic, 12 Democrat chose not to. Why? They knew the truth and were not willing to sign their names to a lie.
Gas prices have increased, that is true, but it’s not because of pipeline companies or utilities, its because New York State (including the Senators above) has blocked new gas pipeline development for nearly 10 years. This interference in the market by government actors has led to constricted supply and higher prices. This winter has been one of the coldest in recent years, so demand was up. Increased demand along with less supply always leads to higher prices. This is economics 101.
Why has there been larger rate increase proposals from utilities in recent years? The Climate Law must take some of the blame. The unrealistic goals and timelines it imposes have led to the need for a massive investment in our aging energy infrastructure. Since the Governor and Legislature have provided no funding for these projects, the burden has fallen on ratepayers. Once again, the culprit here is Senator Krueger and her colleagues.
The Cap and Invest Program was recommended by the Climate Action Council, created under New York’s Climate Law, as a way to help pay for the CLCPA’s ambitious renewable energy goals and to invest in environmental justice communities. While it is essentially a new tax, it’s important to remember why it was proposed: the Climate Law set aggressive and unrealistic requirements, and lawmakers who voted for it did not identify how to fund the massive costs it creates. Cap and Invest isn’t in effect yet, but at this point it’s the only funding mechanism the state has identified to even attempt meeting the mandates imposed by the CLCPA.
Let’sbe frank here. Energy bills are high for a few key reasons.
First, more than 20% of delivery charges are taxes and fees required by New York State. A portion of those dollars goes to NYSERDA, where large amounts of ratepayer funds remain unspent.
Second, restrictions on natural gas pipelines have limited supply and driven up prices.
Third, policies under the CLCPA have already added about 10% to bills, with additional increases expected under proposed legislation.
We applaud Governor Hochul for taking on the fight to adjust the 2019 Climate Law. As the recent NYSERDA memo points out, New Yorkers could see increases in their utility bills of between $2,500 and $4,000 per household, along with gasoline prices rising by up to an additional $2.25 per gallon. Roughly, this could cost families between $200 and $575 more each month on top of current expenses. Additionally, we know the impact that higher gasoline prices have on basic staples such as meat, dairy, bread, vegetables, and eggs! Rising energy costs for all New Yorkers—combined with this onslaught on working families—cannot be allowed to continue.
At minimum, the law should be frozen in place for a period of time and all goals adjusted outward by at least five years. Ratepayers should receive every penny of the money sitting at NYSERDA back in their pockets as a rebate check as soon as possible. We must also have true transparency for ratepayers concerning the costs of state energy taxes, fees and mandates and finally, a real cost study must be conducted on CLCPA. Finally, lets increase gas supply by approving the Constitution pipeline!
Senators Krueger, Harckham and Parker are dancing to the tune of extreme climate activists and putting forward arguments they know are deeply flawed.
We do not need to speculate about the negative impacts the climate law is having on ratepayers. The verdict is in. The only question is, what will we do about it?
Author is Dan Ortega, Executive Director, New Yorkers for Affordable Energy
