Electeds & Advocates Defeat Gov's Attempt to Gut CLCPA, Tell Her to Save $$ Now w/ NY HEAT, AEBA, + Superfund!

ALBANY, NY (04/10/2023) (readMedia)-- Last week, Governor Hochul backed off from her eleventh-hour attempt to force S6030 Parker/A.6039 Barrett into the state budget. The bill, pushed by wealthy fossil fuel interests, would gut our nation-leading Climate Act by undercounting methane emissions and re-classifying dirty energy sources as clean renewables. But the bill is still on the table for post-budget session. The Hochul administration's excuse that we need to undo climate progress to save money ignores the fact that climate change already costs New Yorkers billions every year, on top of the high cost of maintaining and expanding outdated natural gas infrastructure. She already has proposals right in front of her that will cut costs, save New Yorkers money, and effectively address climate change.

Elected officials joined with climate advocates at the Capitol to demand Governor Hochul support the real cost-saving measures, like NY HEAT (S2016 Krueger/A4592 Fahy) and the Climate Change Superfund Act (S2129 Krueger/A3351 Dinowitz), and a prompt timeline for the All-Electric Building Act (S562A Kavanagh/A920A Gallagher), instead of throwing the science-based Climate Leadership and Community Protection Act under the bus. The choice between affordability and protecting the climate is a false one.

Watch the presser here.

"I welcome Governor Hochul's concern about the energy costs New Yorkers face, and I guarantee there's not a single legislator in Albany who wants to see those costs go up. But rather than responding with a last-minute proposal to kneecap our climate law and lock our state into an expensive and dirty gas future, it would make much more sense to embrace the fact-based, thoroughly vetted proposals that will actually save New Yorkers money while bringing us closer to our climate goals. The All-Electric Buildings Act, the NY HEAT Act, and the Climate Change Superfund Act together will help to ensure that our utility bills are more predictable and affordable, and that a significant amount of the costs of climate adaptation are borne by Big Oil, not New York taxpayers and businesses. If the Governor is serious about controlling costs for all New Yorkers, let's start by passing these common sense bills," said Senator Liz Krueger.

Assemblyman Jeffrey Dinowitz said: "At a time when Exxon Mobil made $56 billion in profits last year, Shell made $42 billion, and Aramco made $161.1 billion, a whopping 47% more than in 2021, it's time to make the polluters pay. For a long time these companies have known that their products are the primary cause of climate change. It is unconscionable to put all the costs on New Yorkers. The Climate Change Superfund Act must be included in the final budget agreement so that these companies will be required to clean up their mess."

Assemblymember Deborah Glick said, "Now is the time to move forward on New York's aggressive climate goals that are laid out in the CLCPA. With any new standards, complications may arise, instead of changing those important guidelines, we should thoughtfully address each concern to find solutions while continuing forward to a cleaner, healthier environment. I appreciate the many New Yorkers that stood with my colleagues and I on this important issue. The climate can't wait and solutions can be found."

"The oil and gas industry is pushing the idea that transitioning to renewable energy and dramatically slashing climate-wrecking emissions will be costly for New Yorkers. But the truth is the opposite: it's fossil fuels are subject to wild price fluctuations and unconsciable price gouging, not to mention the billions of dollars of economic damage from sea level rise and catastrophic weather events caused by a warming planet. If Governor Hochul is concerned about the burden of the CLCPA on working New Yorkers, the Legislature has put forward multiple common sense bills that will cap utility costs, make polluters pay and stop the expensive public subsidies for the gas system," said Assembly Member Emily Gallagher.

Already, low-income households spend three times more of their income on energy bills than those living above the poverty line, and 55 percent of New York voters are "very concerned" about the cost of their home energy bills. Both NY HEAT and the All-Electric Building Act will save New Yorkers money. And according to the gas industry's own polling, a majority of New Yorkers support these measures.

A new report from the Building Decarbonization Coalition finds that every new mile of a gas pipeline costs customers an average of $6 million - that's $60,000 per customer on that line! But a new memo from Alliance for a Green Economy shows how NY HEAT would redirect money NYS is already spending on costly gas investments toward climate-friendly solutions, while saving money for hardworking New Yorkers.

The NY HEAT Act puts a 6% income price cap on electricity bills for low and middle-income families. It also gets rid of the unfair 100 foot rule, which requires utilities to hook up new buildings to the outdated gas system costing ratepayers $200 million every year. Plus, it redirects up to $150 billion by enabling neighborhood-scale electrification projects, money that would otherwise be spent replacing leaky gas pipes with new infrastructure that will become obsolete well before it's paid off by ratepayers. In fact, a new report from the Building Decarbonization Coalition shows that as New York electrifies, families who are left behind on the gas system could see their gas bills rise by tens of thousands if we don't pass NY HEAT.

Under the All-Electric Building Act, families living in new electric homes statewide could save $1,000 each year on average compared to homes fueled by gas and propane, according to a report from WIN Climate. Families living in new homes with cold-climate air source heat pumps would save an average of over $900 a year, and those living in new homes with ground source heat pumps would save over $1,100. In rural parts of the state with no natural gas distribution network where homes instead burn propane, new homes equipped with heat pumps could save over $3,670. Plus, tax credits and rebates through the state and federal government can cover up to 100 percent of heat pump installation costs for low and moderate income families.

The Climate Change Superfund Act is designed to relieve New York taxpayers and businesses of the high cost of climate damages and climate resilient infrastructure. In just the first two months of 2023, Governor Hochul announced nearly $750 million in taxpayer funding for storm repairs and climate-related infrastructure upgrades. Over the next decade, experts estimate climate costs could total over $100 billion. With the Climate Change Superfund Act, a portion of these costs would be borne by the wealthy multinational Big Oil companies most responsible for the damage, not hardworking New Yorkers.

Unsurprisingly, it's the wealthy fossil fuel industry behind groups like New Yorkers for Affordable Energy, which lobbies against NY HEAT and other cost-savings measures, who are behind S6030. Nearly one year ago, Politico reported on National Grid's vision for a "fossil free" gas system, which relies on the dirty biofuel S6030 would reclassify as renewable. Governor Hochul received nearly half a million from fossil fuel interests during her 2022 reelection campaign, including from National Grid and National Fuel.

The group also called for Albany leadership to pass the Stop Climate Polluter Handouts Act, which eliminates the tax handouts that prop up the most egregious parts of the fossil fuel industry. It pinpoints and eliminates the worst handouts to polluters: incentives that support research and development within the fossil fuel industry, the use of highly polluting airline fuel and commercial shipping "bunker" fuel, and the operation of fracked gas infrastructure, among many others.

The fossil fuel industry is now the most profitable industry in history and yet, shockingly, New York State currently hands over $1.6 billion of taxpayer money every year to Big Oil (companies like Exxon, BP, and Chevron).

The bill does not touch the tax breaks that benefit low- and mid-income earners. In total, the bill raises $330 million for the state by making polluters pay their fair share of taxes, and it stops New York's practice of incentivizing pollution and bailing out a multi-billion-dollar industry.

"After five years of deliberation, the CLCPA was passed in 2019. Three years later, environmental and state experts developed a comprehensive roadmap to achieve our environmental goals. It has been three short months since the plan was approved, and we have not had any time to implement it. Not only do we have a roadmap, but we have well thought-through proposed legislation to pay for its implementation without shifting the costs onto low and moderate income New Yorkers. Given the dire state of climate change, we cannot afford to water down our climate law. The consequences of doing so would be far more expensive than implementing the full strength of the CLCPA," said Assembly Member Anna Kelles.

"My constituents want the state to take action to lower their energy costs without sacrificing meaningful climate action. I have been hearing about this non-stop. We know that we can meet our climate goals while lowering costs for middle- and low-income households - the Renewable Heat Now legislative package will help us do just that," said Assembly Member Dana Levenberg.

Assemblymember Jo Anne Simon said, "After defeating an attempt to gut key provisions of New York's 2019 Climate Act, we must fight for legislation that will address our climate crisis while saving New Yorkers money. Cost-saving measures like NY HEAT, All-Electric Buildings, and the Climate Change Superfund are critical to ensuring a sustainable environment for future generations. This package of bills will allow us to meet our climate goals by directing utility companies to reduce their emissions, requiring green construction for new buildings, and passing on the costs of pollution to some of the worst climate offenders. Now is not the time to sit back and reverse years of progress to accommodate the fossil fuel industry, but to stand firm and protect the planet from bad actors."

"New Yorkers urgently need climate action that delivers both financial savings and protection from environmental threats. Governor Hochul must prioritize groundbreaking legislation like the All-Electric Building Act, Climate Change Superfund Act, and more, rather than compromising our progress by promoting bills that misrepresent emissions and undercut the CLCPA's critical policies. Our communities deserve transparent, science-driven solutions that will truly save money, improve lives, and secure a sustainable future for all," said Assembly Member Steven Raga.

"Governor Hochul's argument that New York should scale back its climate law in order to save money offers a false choice. Climate change is going to cost NYS at least $100 billion. The question is who pays? Right now it's New York ratepayers and taxpayers. There is a choice, the Climate Change Superfund Act puts those costs squarely where it belongs -- Big Oil. The Hochul Administration should make its choice known; will it protect ratepayers and taxpayers or protect the fossil fuel industry? The answer should be obvious," said Blair Horner, executive director of NYPIRG.

"Now that we've stopped this attempt to take us backward, it's time to move forward. Governor Hochul can start by passing the NY HEAT Act, which will cap energy bills for those least able to afford them, and finally end the outdated laws forcing New Yorkers to pay $200 million a year for toxic fracked gas infrastructure. Will the Governor let the fossil fuel industry keep squeezing every last dollar out of us, or pass NY HEAT and build a green, affordable future for all? said Jessica Azulay, Executive Director of Alliance for a Green Economy (AGREE), a member group of Better Buildings New York.

"We are pleased that Governor Hochul has abandoned the attempt to undermine the Climate Leadership and Community Protection Act," said Sonal Jessel, Director of Policy, WE ACT for Environmental Justice. "But we continue to urge Albany to remain focused on the economic well-being of New Yorkers, which is why they should pass cost-saving energy legislation like the Build Public Renewables Act and the New York HEAT Act, which will ensure that New Yorkers – especially those living in environmental justice communities – will no longer be burdened with disproportionately high energy bills."

"The most effective way for Governor Hochul to deliver energy savings to New Yorkers is ending our costly reliance on fossil fuels," said Food & Water Watch Senior New York Organizer Eric Weltman. "For too long, New Yorkers' high energy bills have maximized corporate polluter profits, promoting fracking and polluting our air at tremendous expense. Governor Hochul must deliver real savings for New Yorkers in the budget by passing the All-Electric Building Act and Build Public Renewables Act. Climate action holds the key to lower energy bills - not delays or loopholes."

"My family feels the impacts from climate change every day. Governor Holchul needs to stop doing the bidding of the fossil fuel interests, and help my family save money and breathe a little easier. We lost everything to Superstorm Sandy. She can pass the All Electric Building Act, right now, through the budget, to move our state past fossil fuels as fast as possible, help us save hundreds of dollars each year, without giving handouts and loopholes to the fossil fuel industry," said Rachel Rivera, a member of New York Communities for Change and Sandy survivor who lives in Brownsville, Brooklyn.

"In the Finger Lakes, Greenidge Generation is wreaking havoc on the environment and our $3 Billion, 60,000-employee agritourism economy - our local economic engine. Kneecapping the CLCPA - our best defense against these out-of-state speculators who care more about lining their own pockets than the community and climate they're threatening – could destroy our ability to curb this dangerous and growing industry. Albany leadership must pass real cost-saving climate legislation and stand with New Yorkers - not the wealthy multinational fossil fuel industry," said Yvonne Taylor, Vice President of Seneca Lake Guardian.

"New Yorkers are already paying for the climate crisis, whether it's high gas bills, damages and lives lost from extreme weather events, or medical bills," said Liz Moran, New York Policy Advocate for Earthjustice. "Gutting the climate law would only line the pocketbooks of the fossil fuel industry - not everyday New Yorkers. If Governor Hochul is truly committed to protecting consumers, the solution is to make this a climate-winning budget by including policies like the NY HEAT Act and All Electric Building Act, which will save New Yorkers money and get them off expensive fossil fuels."

Background on the Climate Change Superfund Act

The Climate Change Superfund Act is first-in-the-nation legislation to put Big Oil, who is still driving the climate crisis, on the hook for climate damages and resiliency. Currently, taxpayers are footing the bill for this mess. The legislation is modeled on the existing toxics superfund law (which deals with land and drinking water contamination) that makes polluters financially responsible for the environmental damages that they have caused. These costs wouldn't fall back on consumers, according to an analysis from the think tank Institute for Policy Integrity at NYU Law.

2022 was a record profit year for big oil, with the top companies' combined profits reaching an astounding $376 billion. Those record profits allowed them to deliver unprecedented returns to shareholders while doing little to address the climate crisis they knew was coming, but did all they could to undermine climate action. Starting in the 1970s, scientists working for Exxon made "remarkably accurate projections of just how much burning fossil fuels would warm the planet." Yet for years, "the oil giant publicly cast doubt on climate science, and cautioned against any drastic move away from burning fossil fuels, the main driver of climate change."

Big Oil is at fault for climate change, and it can certainly afford the costs - which are uniquely necessary - and expensive - in New York. A new report from Rebuild by Design "Atlas of Disaster: New York State'' identifies the impacts of recent climate disasters across New York State at the county level, for the years 2011-2021. The data shows that every single county in New York has experienced a federal climate disaster between 2011-2021, with 16 having five or more disasters during that time. In that decade, more than 100 New Yorkers died as a result of climate-driven disasters. In 2022 that number grew exponentially when Winter Storm Elliot in Buffalo killed 39 people.

In a separate report, Rebuild by Design estimated that the climate costs to New York could be $55 billion by the end of this decade. Furthermore, the U.S. Army Corps of Engineers estimated that it would cost $52 billion to protect NY Harbor alone. And while storms get worse, sea levels are rising and groundwater poses a higher risk of flooding - and we don't even know how much yet. Clearly, New York is facing staggering – and growing – climate costs.

The Climate Change Superfund Act isn't just necessary – it's popular. According to a poll from Data for Progress, 89% of New Yorkers support fossil fuel companies covering at least some of the cost for climate damages. 200+ groups including key labor unions such as DC37 sent a letter to Senate Majority Leader Stewart-Cousins and Assembly Speaker Heastie urging them to include the bill in the one house budgets. In their letter, the groups write that the fossil fuel industry should be subject to the state's climate costs since their "decisions led to global warming; justice requires that they-not New York's other taxpayers-be financially responsible for the tragically enormous climate crisis impacts that they created."

Background on the All-Electric Building Act and NY HEAT

The NY HEAT Act (formerly the Gas Transition and Affordable Energy Act) ensures that New York State will be able to meet the crucial climate justice and greenhouse gas emission reduction mandates set forth in the Climate Leadership and Community Protection Act for buildings without sticking everyday New Yorkers with the bill for misguided expansion of the gas system. It will allow gas utilities to invest in safer, cheaper, neighborhood-scale non-pipe alternatives to new gas infrastructure to protect New Yorkers from spiraling bills and enable zero emissions alternatives to the gas system. It also puts a price cap of 6% of income on electricity bills for low- and middle-income families to ensure energy stays affordable.

Crucially, the NY Home Energy Affordable Transition Act will do away with the unfair 100 foot rule, which sticks everyday New Yorkers with the bill for gas hookups in new buildings totalling $1 billion in added costs to utility bills for New Yorkers over just five years.

It will also allow enable the PSC to pair back the utility obligation to provide gas services in order to enable utilities to redirect the up to $150 billion that it will cost to complete planned gas pipe replacements over the next 20 years, and instead invest in neighborhood-scale building electrification that enables a strategic downsizing of the gas system consistent with the recommendations in the gas system transition chapter of the CAC Scoping Plan.

The All-Electric Building Act will ban fossil fuel use in new buildings across New York State, requiring them to be all-electric with appliances like energy efficient heat pumps for heating, cooling, and hot water, and modern induction cooktops. In 2021, New York City passed its own version of the All-Electric Building Act, banning fossil fueled systems in new buildings across the city starting in 2024.

In January, 200 advocates and 25 NYS legislators and called on Governor Hochul to uphold her State of the State commitments by including the All-Electric Building Act (S562A/A920), the NY Home Energy Affordable Transition (NY HEAT) Act (S2016/A4592) and the Energy Efficiency, Equity, and Jobs Act (S3126/A3996A) in her Executive Budget, and for the Assembly's support. Previously, 220 groups across New York State sent a letter to Governor Hochul, urging her to include the All-Electric Building Act, the NY HEAT Act, and other key energy affordability provisions in her executive budget.

Last year, the All-Electric Building Act enjoyed support from Governor Hochul, Senate leadership and environmental groups, but a campaign financed by the fossil fuel industry that spread disinformation and lies derailed the bill. The industry set up a front group called New Yorkers for Affordable Energy to preserve the status quo. A report from Little Sis reviewed the organization's tax filings which show that its mission is "to expand natural gas service." The group is meant to have the appearance of a grassroots coalition, but it was founded and is run by fossil fuel executives. From the report: "The coalition is backed by a range of fossil fuel companies and lobbying groups, including utility companies National Fuel and National Grid; pipeline companies Williams, Enbridge, and Millennium Pipeline; and the American Petroleum Institute. Other backers include corporate lobbying groups like the Business Council of New York State, regional chambers of commerce like the Buffalo Niagara Partnership, and fossil fuel industry trade groups like Independent Power Producers of New York and Energy Coalition New York."

Nationwide, the fossil fuel industry is still heavily involved in misinformation efforts against necessary legislation like this. The New York Times reported recently about the Propane Education Research Council sponsoring HGTV star Matt Blashaw. Blashaw calls propane - which contributes to climate change and is the most expensive heating fuel- "an energy source for everyone."