New York vs. California: Who’s Ahead on Climate Policy?
California has historically been a leader in clean energy and technology innovation in the United States. In 2006, and long before climate change became a topic of conversation at the dinner table, California passed the Global Warming Solutions Act, which mandated the state to reduce greenhouse gas emissions to the 1990 level by 2020. After the state achieved this goal four years early, California further advanced its emissions reduction target to 40 percent below 1990 levels by 2030.
When the Trump Administration rolled back nearly all climate policies — as well as pulled out of the global Paris Agreement — several state governments stepped up to fill the void. California suddenly wasn’t alone in its quest to combat climate change.
New York State in particular has emerged as California’s rival in climate change leadership. In July 2019, New York passed the Climate Leadership and Community Protection Act (CLCPA), which aims to reach 100 percent carbon-free electricity by 2040 and net-zero emissions across the state economy by 2050.
While both states have prioritized electrification of its built environment as a means to achieve their climate targets, New York’s approach is proving more effective.
New York is incentivizing customers to electrify buildings, and investing an additional $2 billion for energy efficiency programs. Thanks to this approach, customers in New York will be able to save more than $13 billion on utility bills through 2025.
California, on the other hand, chose to restrict new natural gas — an approach which would mainly impact new buildings and do little to decarbonize existing infrastructure. Additionally, the California Public Utilities Commission (CPUC) has voted to invest $45 million in all-electric heat pumps — a complementing effort to electrify existing infrastructure. This program is also intended to advance on-site clean energy generation and energy storage systems. However, the announced budget is a fraction of New York’s allocated amount for a state that is twice the population size.
In addition to building electrification, New York is aggressively investing in renewables and clean energy innovation. In February 2020, New York State Governor Andrew Cuomo announced a 30-day amendment to accelerate renewable energy projects within the state. In the same month, the New York State Energy Research & Development Authority (NYSERDA) announced a $6 million Co-Investment Fund designed to support emerging cleantech companies based in New York. While California has been investing in these areas over the past decade, New York is now investing at a break-neck speed.
There is no doubt that New York has emerged as a leader on climate change policy.
It is also a positive sign that other states (namely Nevada, New Mexico, Maine, and District of Columbia) are adopting climate policies that promote widespread adoption of renewables, clean technology, and energy efficiency programs. Given the urgency to keep global warming from exceeding 1.5C degrees, it is imperative that the U.S plays a leading role in achieving this goal, regardless of who is in the White House. California has been spearheading the transition to a clean energy economy for the past 14 years — and it is finally going to have some company.
At Build Edison, we have decades of experience in developing, managing, and financing demonstration projects across various clean energy technologies. We offer a number of solutions for startups, large companies, governments and investors to grow quickly and consistently, and to capitalize on one of the most exciting areas of the energy market.
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