Greenhouse Gas Reporting Regulation Proposal Now Available for Public Review
New York Cap-and-Invest
Greenhouse Gas Reporting Regulation Proposal Now Available for Public Review
New York State is undertaking an ambitious effort to achieve cleaner air in its communities and address the threat of climate change by reducing pollution and emissions from every sector of the economy and investing in an equitable, clean energy future for all New Yorkers.
A cap-and-invest program will establish a declining cap on greenhouse gas emissions delivering cleaner air and limiting potential costs to New Yorkers. Proceeds will be equitably invested in programs that drive emission reductions, while maintaining the competitiveness of New York businesses and industries.
Core Principals of a Cap-and-Invest Program
Governor Kathy Hochul laid out five core principles for the cap-and-invest program:
Affordability – Governor Hochul's Consumer Climate Action Account will deliver at least 30 percent in future cap-and-invest proceeds to New Yorkers every year to mitigate consumer costs.
Climate leadership – The program will be designed with the capacity to link with other current or future programs to further catalyze a nationwide movement towards carbon pricing.
Creating jobs and preserving competitiveness – The program will launch new investment in industries that will create tens of thousands of good paying, family sustaining jobs of the future that can lift up entire communities.
Investing in disadvantaged communities – Cap-and-invest will prioritize the frontline disadvantaged communities in our state that for far too long have suffered from pollution and environmental injustice.
Funding a sustainable future – The Climate Investment Account will direct two-thirds of future cap-and-invest proceeds to support the transition to a less carbon-intensive economy.
How Cap-and-Invest Works
The Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) are designing a program that sets an annual cap on the amount of greenhouse gas pollution that is permitted to be emitted in New York. The cap-and-invest program will draw from the experiences of similar and successful programs across the country and the world that are yielding sizeable emissions reductions while catalyzing a clean energy economy.
Under the program, large-scale greenhouse gas emissions sources and distributors of heating and transportation fuels will be required to purchase or obtain allowances for the emissions associated with their activities. By applying a price to the amount of pollution, a cap-and-invest program incentivizes consumers, businesses, and other entities to transition to lower-carbon alternatives.
To ensure affordability and deliver tangible benefits to our communities, cap-and-invest proceeds will be strategically invested in New York’s plan to decarbonize our economy. This includes critical investments in energy efficiency, clean transportation, and other projects, in addition to funding an annual Consumer Climate Action Account that will be distributed to New Yorkers to mitigate any potential consumer costs associated with the program.
Make Your Voice Heard
DEC and NYSERDA welcome input throughout the development of all greenhouse gas reduction programs. For more information on the proposed cap-and-invest program components and to comment on the different aspects, please visit the Pre-Proposal page, the Proposed Regulations page, and the Use of Proceeds page.
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