New York Seeks Flexibility on Climate Act Deadlines

Hochul pushes for changes to greenhouse gas accounting, while advocates open to settling lawsuit

Mar. 16, 2026 at 10:05pm

New York Governor Kathy Hochul is seeking more time for the state to meet the greenhouse gas reduction mandates of the Climate Act, citing a recent court ruling that requires the state to take immediate action. Environmental advocates say they are open to settling the case, as long as the state doesn't implement a "draconian" cap-and-invest program that would dramatically increase energy costs for residents.

Why it matters

The Climate Act's strict greenhouse gas reduction targets have created tension between the state's environmental goals and the potential economic impacts on residents. Hochul's push for changes to the emissions accounting method and a longer timeline to meet the targets reflects concerns about the feasibility and affordability of the current requirements.

The details

In October 2022, a state Supreme Court justice ruled that the Department of Environmental Conservation must follow the Climate Act's mandate to put forth rules ensuring New York reaches its 40% greenhouse gas reduction target by 2030. However, the state argues this would lead to a "highly costly" cap-and-invest program that could raise annual energy costs for some households by $4,000. Environmental groups that sued the state say they are open to settling the case, as long as the state doesn't implement an overly aggressive cap-and-invest policy. The state is also considering changing the greenhouse gas accounting method to align with global 100-year standards, which could push the 2030 target out to 2031-2035.

  • In October 2022, a state Supreme Court justice ruled on the case.
  • In February 2023, the New York State Energy Research and Development Authority released a memo on the potential impacts of a cap-and-invest program.

The players

Kathy Hochul

The Governor of New York who is seeking more time and flexibility for the state to meet the Climate Act's greenhouse gas reduction mandates.

Letitia James

The New York Attorney General who has appealed the state Supreme Court ruling in the Climate Act case.

Rachel Spector

An attorney with Earthjustice, representing the environmental groups that brought the case against the state.

Doreen Harris

The president and CEO of the New York State Energy Research and Development Authority, which issued a memo on the potential impacts of a cap-and-invest program.

Julian Schreibman

The state Supreme Court justice who ruled that the Department of Environmental Conservation must follow the Climate Act's greenhouse gas reduction mandate.

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What they’re saying

“We must not walk away from our climate goals, but (we need to) make sure that the path we're on is realistic and fair to the people we serve, because a climate policy that leaves working families behind is not a sustainable path forward.”

— Kathy Hochul, Governor of New York

“There are many ways to proceed and resolve this issue relating to the lawsuit that don't involve imposing a draconian version of cap-and-invest.”

— Rachel Spector, Attorney, Earthjustice

“The Legislature has already decided that the Climate Act's goals 'shall' be achieved. The Legislature has not empowered (the Department of Environmental Conservation) to set its own targets, to achieve results within a range, or to simply to make progress. Instead, it has specified a result and required DEC to issue regulations that 'shall' fulfill it.”

— Julian Schreibman, State Supreme Court Justice

What’s next

The state's appeal of the Supreme Court ruling is pending in the appellate division. The judge in the case will decide whether to allow any changes to the Climate Act's greenhouse gas reduction deadlines.

The takeaway

The tension between New York's ambitious climate goals and the potential economic impacts on residents highlights the challenges of implementing sweeping environmental policies. Finding the right balance between environmental protection and affordability for consumers will be crucial as the state navigates the legal and political battles over the Climate Act.