New York is still developing its economy-wide carbon market, but it will take more time than initially anticipated, according to a state official.
The program, which could ultimately look similar to systems in place in California and Washington, "is still moving forward but it takes a bit of time", New York State Department of Environmental Conservation deputy commissioner Sanjay Seth said on Wednesday at the International Emissions Trading Association's North America Climate Summit in New York City.
Seth's predecessor at the same event, held on the side lines of the UN General Assembly and Climate Week NYC, one year ago said that draft regulations establishing the program were just months away. But Governor Kathy Hochul (D) signaled yet another delay in January when she said the draft rules would be ready in "coming months," prompting criticism from environmental groups.
Since then, the agency released a proposal requiring power plants, industrial facilities and other large sources to report their greenhouse gas (GHG) emissions — a prerequisite to new pollution limits — but has not finalized the rule or provided additional insights on the carbon market's future design.
"We're getting that part through", Seth said about the reporting requirements. "Some of these other parts will take a little more time".
He noted too that the agency is still accepting public comments on potential program design, another signal that any rule release is not imminent.
In addition, New York plans to rename the program the "clean air initiative" after previously calling it the New York cap-and-invest (NYCI) program.
Environmental groups have sued the state to force a speedier release of regulations to meet state climate law requirements, which they say are "essentially ready." During a hearing for the lawsuit that was held in July, a state court judge appeared inclined to agree with the environmental groups, pushing back against the state's arguments that regulators were doing all they could to reduce emissions.
Concerns about rising electricity costs, fueled growth in forecasted power demand as data center needs balloon and states seek to electrify much of its economy, have been a major talking point for government officials the northeast US, and New York is no exception.
Hochul's commitment to the program, given her wariness during her tenure about other environmental policies that could hike costs for New Yorkers, is unclear. Seth said "affordability" remained a top concern.
New York is also defending itself against a lawsuit from the US Department of Justice challenging the state's "climate superfund" law. The law seeks to require oil, coal, and natural gas companies to pay fees to cover the climate-related costs resulting from their GHG emissions.
Conversely, Seth insisted that the state remained committed to the Regional Greenhouse Gas Initiative (RGGI), a market covering power plant CO2 emissions from 10 northeastern states including New York. Program leaders agreed last month to a more rapidly declining cap on emissions, setting participating states up to update their regulations.
New York's plan to update its RGGI rules in tandem is "on schedule", Seth said. RGGI member states must finalize their respective regulations implementing the new changes before 2027.
"I don't expect any issues," Seth said. "New York is moving forward. All these states are moving forward."
The state is also still studying what a clean transportation standard, inspired by low-carbon fuel standards in other jurisdictions, might look like.
