By Rick Karlin | Times Union, Albany
Albany, N.Y. — New Yorkers on Thursday got their first glimpse of what the state’s Cap and Invest program to reduce carbon emissions will look like, with release of a “Pre-Proposal” plan from the Department of Environmental Conservation and New York State Energy Research and Development Agency.
The wide ranging plan, which will now be subject to a series of meetings as well as lobbying, stems from the landmark 2019 Climate Leadership and Community Protection Act, which calls for greatly reducing greenhouse gas emissions from all phases of the state’s economy in the coming years.
As it became clear that this task, which calls for switching energy sources from fossil fuels to cleaner alternatives such as solar and wind would be costly, policy makers began moving toward the Cap and Invest model to help pay for the changes.
It’s similar to a carbon tax in that it places a price on emissions, but the proceeds are dedicated to specific uses such as consumer tax rebates and further development of green energy sources.
The Cap and Invest program also will require entities, ranging from businesses to institutions like hospitals and schools to report on how much carbon they are emitting each year, through factory smokestacks, heating boilers or other sources. Even facilities like landfills or agricultural manure piles will likely have to make annual reports, if their emissions are high enough.
The biggest emitters, such as large factories or power plants, will be likely have to purchase emission credits through an auction, which makes up the tax-like part of the plan.
Thursday’s report contemplates starting the program as early as 2025, with the amount that businesses and other entities are allowed to emit based on historic levels from 1990 through 2021.
There would be allowances, or eased guidelines for “trade exposed” industries, or those businesses that face stiff foreign competition.
The carbon auctions would also be sold with a reserve price, or a floor which would rise 8 percent annually to cover inflation. Conversely there would be a trigger for allowances if the auction prices rise too high, according to the preliminary plan.
The program would not include offsets, or credits for participating in activities that reduce the carbon load, such as protecting forest land as a way to absorb carbon. Such credits have been criticized since they don’t necessarily lead to a net reduction in carbon emissions by the person or organization engaging in the offset.
The plan also aims to help historically disadvantaged communities that have often suffered the brunt of pollution over the years. Greenhouse gas emitters near such communities, for example, might face tougher carbon restrictions.
Thursday’s release also included an Affordability Study from NYSERDA, which among other things looks at some of the ins and outs of how a refund for consumers might function.
The next step will be draft regulations for the Cap and Invest program. Before then, however, DEC and will hold virtual stakeholder meetings in January. They are:
Jan. 23, 3 to 4:30 p.m. — The Role of Cap-and-Invest
Jan. 25, 1 to 4 p.m. — Pre-Proposal Outline Overview
Jan. 26, 11 a.m. to 2 p.m. — Preliminary Analysis Overview
To register to attend, visit https://capandinvest.ny.gov/Meetings-and-Events. Recordings of the webinars will be posted online following the events.
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