After a NYSERDA memo made public last month showed that New York’s climate law could cost New York households thousands of dollars on average, state leaders are reportedly mulling changes to the law. WAMC’s Andrew Waite spoke with Kate Courtin, the senior manager of state climate policy and strategy at the Environmental Defense Fund, beginning with what she thinks the NYSERDA memo gets wrong.
Kate Courtin: The NYSERDA memo models a program that is just not on the table. And the state did a lot of work a couple of years ago to develop robust and thoughtful policy proposals that they released. And our modeling is looking at one of those proposals they released a few different scenarios. We take one of those scenarios and really look at the economic impacts of that program in terms of net household costs, job creation and total economic activity, and we find really exciting outcomes from that analysis. Again, looking at a program that the state has previously put on the table, and over the first decade of the program, we find that statewide working families are seeing nearly $7 billion in net savings as a result of the program. And the program would also create hundreds of thousands of new jobs, good paying jobs, in addition to driving about $48 billion in economic output across the state.
Waite: But haven't we seen the green energy rollout kind of face some hurdles. I mean, from the local level, where people are pushing back against solar and battery storage facilities to, federal cuts that have delayed the implementation or hurt the implementation of some of these programs. I mean, just this week, there was also reporting about tariffs affecting some some green energy projects that have had contracts with the state. So how does that affect your analysis?
Courtin: Yeah, so I think broadly, New York has a really important opportunity and a powerful policy tool in its toolkit here that it hasn't moved forward with. There are, of course, going to be hurdles to a clean energy transition. And at the same time, the state can within its authority and in an effort to make progress towards the emissions targets it has set as a state, it can advance a well-designed cap and invest program that drives down climate pollution and at the same time really yields net cost savings for the vast majorities of families in the state. And can, you know, use that program and the investments raised under that program to help, frankly, smooth out some of these hiccups and challenges that we may see in the clean energy transition coming from, you know, forces outside of the state.
Waite: I guess I'm wondering so the renter in Troy or Albany or New York City, how do you see that person seeing cost savings as a result of the implementation of the state's climate law?
Courtin: Yeah, so a couple key ways. And speaking with respect to the cap and invest program itself, which is one piece of advancing the climate law, but the cap and invest program would raise on the order of $3 to $6 billion a year. And those funds would be invested, you know, in part, directly back into households through utility bill credits. And the vast majority of the funds would be used to help scale up energy efficiency and clean energy programs that can lower bills year over year. So, for example, you know, a household, a renter, potentially in the Capital Region, could be participating in a program that is helping them access no-cost weatherization upgrades to help insulate their home, make it more comfortable and ensure they're using less energy over time. There are dozens of other types of investments from this program that will help consumers and households across the state put their energy use and upgrade to clean, efficient technologies that will not have fuel costs over time and will certainly not have volatile fuel costs, you know, the likes of which people are seeing and experiencing right now.
Waite: But do you worry that that relies too much on upfront investment, on people making changes to their homes, on people having to kind of take advantage of these rebates and make these changes to their homes?
Courtin: So I think the uniquely powerful thing about cap and invest is while there may be some costs passed through by polluters who have to pay to comply with the program. The program can be designed such that consumers and the average household are really seeing savings as a result of the rebate, but as a result of the investments of the program. Both you know immediately and over time. You know, part of the point of the cap and invest program is to make sure it is easier and cheaper and quicker for households to get get that access to a new heat pump that would help lower their heating bills year over year. You know, help them find access to public transit, expand public transit and reduce reliance on, you know, having to drive or adopt an EV or again, you know, put those energy efficiency measures in that help insulate their homes and lower their energy bills and energy costs over time. So it's both like the ability for the program to fund rebates and to make those really longer term investments that help lower bills. That is sort of the unique strength of that program.
Waite: Are there changes to the state's climate law that that the Environmental Defense Fund would be on board with?
Courtin: Look, I think right now, the only conversation we should be having is, how do we quickly scale up clean energy and help insulate homes and people in New York from the volatile and rising cost of fossil fuels? We think that involves implementing the climate law and really moving forward with well-designed programs like cap and invest that, again, can cut pollution and create, you know, job opportunities and cost savings to the vast majority of New Yorkers.
Waite: That's Kate Courtin, senior manager of state climate policy and strategy at the Environmental Defense Fund. Kate, thanks for your perspective and for joining us today. We really appreciate it.
Courtin: Thanks so much for your time.
