Use of Proceeds

Uses of New York Cap-and Invest (NYCI) Proceeds

As part of the Fiscal Year 2024 State Budget, Governor Hochul secured the creation of the Climate Action Fund for proceeds from the future sale of allowances through NYCI auctions. The Fund includes three accounts, each with a specific purpose to help ensure that the Program is affordable for all New Yorkers, helps industry and small businesses remain competitive as they decarbonize, bolsters carbon reductions, and focuses on benefits to disadvantaged communities, accompanied by strong labor standards to ensure the creation of high-quality jobs.

1. The Consumer Climate Action Account will deliver 30 percent of proceeds directly to New Yorkers each year to mitigate any consumer cost increases that could result from the NYCI program. NYSERDA and DEC developed the Climate Affordability Study [PDF] in collaboration with the NYS Division of Budget, Department of Taxation and Finance, and Department of Public Service to consider how best to deliver proceeds to New Yorkers.
2. The Industrial Small Business Climate Action Account will deliver up to 3 percent of proceeds to support energy affordability for industrial small businesses.
3. The Climate Investment Account will invest 67 percent of proceeds to support actions that advance New York’s transition to a less carbon-intensive economy. These measures will be guided by New York’s Scoping Plan and the Disadvantaged Communities Barriers and Opportunities Report, both of which can be found on the Climate Act webpage (opens in new window).

Climate Investment Account

Proposed Draft Investment Framework

Investments supported by the Climate Investment Account will be critical for accelerating an equitable and affordable clean energy transition and are an essential part of New York’s Cap-and-Invest program.

DEC and NYSERDA are seeking public input on a draft investment framework to guide the allocation of these proceeds and identify areas for investment. Proposed investment areas include Clean Transportation, Low-Carbon Buildings, and Low-Carbon Industry as well as cross-sectoral areas such as Workforce Development and Just Transition and Community-Directed Grants and Capacity Building in Disadvantaged Communities.

Process

During an August 2024 webinar, DEC and NYSERDA presented a draft investment framework and potential areas for investment. Following the presentation, DEC and NYSERDA posed a series of questions to stimulate public input and held a question-and-answer session. For more information on the recent webinar, please visit the Meetings and Events page.

Make your voice heard

DEC and NYSERDA welcome public input to help refine the proposed investment framework. Feedback on the uses of NYCI Climate Investment Account proceeds will be vital to developing a portfolio of investments that will reduce emissions, aid the State’s ongoing just transition to a clean energy economy, and ensure that all New Yorkers, including those in Disadvantaged Communities, receive benefits as part of the transition. DEC and NYSERDA have developed a template document to assist commenters in providing feedback on these investment topics [PDF]. Feedback is welcome at any time, but is encouraged by September 30, 2024. Input received during prior outreach on NYCI will also be considered.

Submit Investment Comments (opens in new window)

View Investment Comments (opens in new window)

While specific input is requested on the use of Climate Investment Account proceeds, DEC and NYSERDA continue to welcome feedback on the overall development of the NYCI program.

Submit Rule comments (opens in new window)