New York State Budget Lacks Bold Action on Energy and Climate

Governor misses opportunity to lead on cutting energy costs and protecting climate and public health

Contacts

Nydia Gutiérrez, [email protected], (202) 302-7531   

This week, New York Governor Kathy Hochul released her SFY2027 Executive Budget proposal.

The following statement can be attributed to Liz Moran, New York policy advocate for Earthjustice:  

"New Yorkers can't afford business as usual anymore. Our state's dependence on gas is driving energy costs higher and higher, but the Governor's proposed budget falls short of what's needed to tackle this challenge. The Governor acknowledges the need for affordable clean energy and meaningful environmental protections in the face of dangerous federal rollbacks and continues funding for important programs like Empower+ and the Environmental Protection Fund. But this budget fails to advance the bold policies and investments New Yorkers desperately need for affordable clean energy and environmental protection. We are prepared to work with the Governor and the legislature to ensure the 2026 session provides the leadership this moment calls for on energy affordability and environmental and public health protections." 

Here's Earthjustice's initial assessment of the SFY2027 Executive Budget:

• Sustainable Future Program-Disappointingly, the Governor neglected to include an additional $1 billion towards the Sustainable Future Program, which provides key funding for energy affordability and climate measures. As the federal government cuts funding and basic clean air protections, and in the absence of regulations to implement New York's climate law, maintaining this program to cut energy costs and invest in clean energy technologies is especially important. Earthjustice urges the Legislature to include at least $1 billion for this program in their respective one-house budgets.

• Excelsior Power- The Governor's proposal includes $33 million for a new program to incentivize grid flexibility through the adoption of smart thermostats and other technologies. According to the Governor's State of the State Address, this program would give utility customers who opt to have smart meters installed credits of $25 per month; however, this program has not been detailed in any of the Governor's budget bills. Earthjustice is supportive of this concept; however, we urge the Governor and Legislature to detail the program in program text within the budget.

• EmPower+ Program- Earthjustice urges the Governor and the Legislature to include at least $200M for EmPower+ in the SFY2027 budget. As the Governor rightfully notes, EmPower+ is a critical, and oversubscribed, program that helps low and moderate-income households reduce their energy costs and make their homes more comfortable while cutting emissions. We are pleased to see the Governor propose an increase of $50 million in funding towards this program, but given the severity of the energy affordability crisis and the popularity of this program, far more is needed.

• State Environmental Quality Review Act (SEQRA) reform for housing-Environmental review under State Environmental Quality Review Act (SEQRA) remains a critical tool to highlight and mitigate potential environmental harms from various projects. Earthjustice agrees SEQR should not hold up housing development in the circumstances set forward by the Governor, or the narrow set of beneficial infrastructure projects outlined like new parks and green stormwater management. But we must get the details right, and changes to SEQRA must remain narrow and protective. Earthjustice looks forward to working with the Governor and Legislature to strike the right balance.

• Environmental Protection Fund (EPF)-Earthjustice applauds the Governor for her inclusion of $425 million for EPF, which provides critical funding to protect New York's precious air, water, and land while creating thousands of good jobs and boosting our economy. We urge the legislature to support this funding in their respective one-house budgets, and note the particular importance of maintaining funding for the Climate Resilient Farming and Agricultural Non-Point Source Control programs.

• Clean Water Infrastructure Act (CWIA) funding- We are pleased that funding was maintained for the CWIA however, despite the Governor's messaging, the program did not receive any additional funding. The CWIA, which has been funded at $500 million annually for nearly a decade, provides funding for numerous essential and oversubscribed programs. It has been estimated that New York has over $80 billion in drinking and wastewater infrastructure needs alone, which doesn't include the many other important programs that receive funding from the CWIA, like lead service line replacements and treatment technology for PFAS. The legislature should place as much as possible of the $250 million the Governor set aside for new water infrastructure into the CWIA.

• EV Charging Sales Tax- We welcome the proposal to exempt commercial EV charging from sales tax, which will further enhance the overall financial benefits of EVs over combustion cars.

• Solar in public schools-The Governor is right to identify the urgent need - and enormous untapped opportunity - of greening New York Public Schools. We support the Governor's proposal to adjust the School Building Aid rules to include renewable energy projects. We encourage the Legislature to take this further by including $1 billion for the Sustainable Future Program and allocating, at a minimum, another $50 million for Green Schools funding.

• Tackling Utility Costs-We applaud the Governor for taking steps to protect more tenants from utility shutoffs, and appreciate her acknowledgment that more must be done to protect consumers from skyrocketing utility bills and hold utilities accountable. As Earthjustice continues to evaluate these proposals, we encourage the Governor and Legislature to consider measures such as a Utility Intervenor and a Utility Intervenor Fund, a model that has been successful in other states that would enable ratepayers to have a voice in rate cases. Additionally, New York must do more to enforce its policy for the Energy Affordability Program and adopt policies to avoid unnecessary spending on costly fossil fuel infrastructure, which is the main driver of rate increases.

• Data Centers-Though the Governor discussed the importance of making data centers pay their fair share for their astronomical energy and electric infrastructure demands to prevent other ratepayers from being saddled with higher costs, no policy was included in her budget proposal to tackle this. Earthjustice looks forward to working with the Legislature to pass legislation that addresses data centers before they become New York's next energy affordability and environmental cris

About Earthjustice

Earthjustice is the premier nonprofit environmental law organization. We wield the power of law and the strength of partnership to protect people's health, to preserve magnificent places and wildlife, to advance clean energy, and to combat climate change. We are here because the earth needs a good lawyer.