States Reassess Climate Mandates as Energy Costs Surge

Will the tide turn against aggressive climate policies, and will rising energy costs cause states like California and New York to pause and reverse course on previously celebrated mandates?

California has long been a national outlier on environmental regulation, but it has recently shifted course due to mounting pressure from rising gas prices and grid reliability concerns. Now New York is facing its own environmental hard truth.

In a recent article, Energy in Depth noted that after environmentalists sued the state for delays in implementing its 2019 climate law, New York Supreme Court Justice Julian Schreibman ruled the law is binding and must be enforced, despite the state's claim that doing so would cause "extraordinary and damaging costs." Governor Kathy Hochul is now pushing to repeal or amend the legislation, citing dramatically changed circumstances and economic strain on consumers.

The New York Independent System Operator (NYISO) recently flagged major reliability risks due to scheduled peaker plant closures. In response, Gavin Donohue of the Independent Power Producers of New York warned that energy reliability "margins will be breached" unless dispatchable resources are prioritized.

The California Independent Petroleum Association has been clear that ambition alone will not keep the lights on or our vehicles on the road. 

As former FERC Chairman Neil Chatterjee warned in 2021, ignoring operational realities in pursuit of climate targets can destabilize the grid and drive out essential energy resources.

As affordability stays a top concern for voters, CIPA will continue reminding policymakers that their actions are raising costs for everyone.