{"id":299022,"date":"2024-01-30T10:39:27","date_gmt":"2024-01-30T09:39:27","guid":{"rendered":"https:\/\/climatescience.press\/?p=299022"},"modified":"2024-01-30T10:39:31","modified_gmt":"2024-01-30T09:39:31","slug":"new-york-cap-and-invest-the-role-of-cap-and-invest","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=299022","title":{"rendered":"New York Cap and Invest \u2013 The Role of\u00a0Cap-and-Invest"},"content":{"rendered":"\n
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From Watts Up With That?<\/a><\/p>\n\n\n\n

From the Pragmatic Environmentalist of New York<\/p>\n\n\n\n

Roger Caiazza<\/p>\n\n\n\n

On January 23, 2024 the New York State Department of Environmental Conservation (DEC) and the New York Energy Research & Development Authority (NYSERDA) hosted the first webinar of this year\u2019s New York Cap-and-Invest (NYCI) Program<\/a> stakeholder engagement process.  This post presents my initial impressions of the first webinar in a series of three. <\/p>\n\n\n\n

I have followed the Climate Act since it was first proposed, submitted comments<\/a> on the Climate Act implementation plan, and have written<\/a> over 380 articles about New York\u2019s net-zero transition. The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.<\/p>\n\n\n\n

Overview<\/strong><\/p>\n\n\n\n

The Climate Act established a New York \u201cNet Zero\u201d target (85% reduction in GHG emissions and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be \u201czero-emissions\u201d by 2040. The Climate Action Council<\/a> (CAC) is responsible for preparing the Scoping Plan that outlines how to \u201cachieve the State\u2019s bold clean energy and climate agenda.\u201d  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis<\/a> prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan<\/a> outline of strategies.  After a year-long review, the Scoping Plan was finalized at the end of 2022.  In 2023 the Scoping Plan<\/a> recommendations were supposed to be implemented through regulation, PSC orders, and legislation.  Not surprisingly, the aspirational schedule of the Climate Act has proven to be more difficult to implement than planned.  Many aspects of the transition are falling behind and the magnitude of the necessary costs is coming into focus.  When political fantasies meet reality, reality always wins.<\/p>\n\n\n\n

Cap-and-Invest<\/strong><\/p>\n\n\n\n

The Climate Action Council\u2019s Scoping Plan recommended a market-based economywide Cap-and-Invest Program.  It is supposed<\/a> to establish a declining cap on greenhouse gas emissions, limit potential costs to New Yorkers, invest proceeds in programs that drive emission reductions in an equitable manner, and maintain the competitiveness of New York businesses and industries. Cap-and-Invest will ensure the state meets the greenhouse gas emission reduction requirements set forth in the Climate Leadership & Community Protection Act<\/a> (Climate Act).<\/p>\n\n\n\n

The reality is different<\/a> particularly because environmental activists want to remove certain components that have made similar programs work in the past.  Further background information is available at my carbon pricing initiative page<\/a>.<\/p>\n\n\n\n

NYCI Implementation<\/strong><\/p>\n\n\n\n

The NYCI website<\/a> describes the implementation plan:<\/p>\n\n\n\n

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This process will solicit crucial feedback from individuals and stakeholder groups to build out an equitable program that balances interests while ensuring the State meets its greenhouse gas emission reduction objectives. New York\u2019s Cap-and-Invest Program will draw from the experience of similar and successful programs across the country and the world that have yielded sizeable emissions reductions while catalyzing the clean energy economy.<\/p>\n\n\n\n

In the First Stage of Pre-Proposal Outreach DEC, and NYSERDA hosted a series of webinars<\/a> in June 2023. DEC and NYSERDA have now entered into the Second Stage of Pre-Proposal Outreach and will continue to host workshops to gather feedback on the program as we develop regulations to implement the Cap-and-Invest Program. See the Events page<\/a> for more information on upcoming webinars and recordings of past webinars.<\/p>\n<\/blockquote>\n\n\n\n

In this stage of the pre-proposal outreach DEC and NYSERDA are seeking feedback on a outline of questions and descriptions<\/a> for NYCI implementation.  They want feedback by March 1 and plan to have the regulation in place by the end of 2024.   The first webinar described the role of NYCI. Subsequent webinars will review the pre-proposal outline and describe an analysis of expectations for allowance prices and emissions trajectories.  I will address those webinars here as well.<\/p>\n\n\n\n

Webinar Overview<\/strong><\/p>\n\n\n\n

The entire webinar was scripted.  Each presenter read their remarks and it even appeared that the responses to questions were vetted.  For example, in the overview Doreen Harris, President of NYSERDA read the Guiding Principles for NYCI.  The narrative is that under Governor Hochul\u2019s direction, New York\u2019s cap & invest program will incorporate these guiding principles:<\/p>\n\n\n\n