New York Climate Law to Hike Energy Costs by Thousands

State agency warns of soaring electricity, gas, and gasoline prices for households and businesses due to 2019 climate legislation.

Published on Mar. 2, 2026

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A New York state agency has warned that the state's 2019 climate law will drive up energy costs for households and businesses by thousands of dollars per year by 2031. The New York State Energy Research and Development Agency estimates electricity costs alone will rise $4,100 annually per household, while gas and gasoline prices are also set to spike. Businesses could see utility costs jump 46% and delivery expenses rise over 60%. Governor Kathy Hochul appears poised to push for changes or delays to the law, at least until after the upcoming election, as the added costs threaten her affordability agenda.

Why it matters

The steep rise in energy costs resulting from New York's ambitious climate law could undermine public support for the state's environmental agenda, as voters balk at the financial burden. Opponents have long warned of the law's astronomical costs, which now appear to be materializing. This poses a political challenge for Governor Hochul as she runs for reelection on a platform of affordability.

The details

According to a memo from the New York State Energy Research and Development Agency, the state's 2019 Climate Leadership and Community Protection Act will drive up household electricity costs by $4,100 per year by 2031. Gas and gasoline prices are also expected to surge, with a gallon of gas going up an additional $2.23. Businesses could see utility costs rise 46% and delivery expenses climb over 60%, which would likely be passed on to consumers in the form of higher prices.

  • The 2019 Climate Leadership and Community Protection Act set targets of a 40% reduction in greenhouse gas emissions by 2030 and 100% zero-emission electricity by 2040.
  • Governor Hochul appears poised to push for changes or delays to the law before the November 2026 election, when she is running for reelection.

The players

Kathy Hochul

The current Governor of New York, who is running for reelection in 2026 on a platform of affordability.

Blake Washington

The Budget Director for Governor Hochul, who has argued that rule changes may be needed to "fit the times" regarding the climate law.

Andrea Stewart-Cousins

The Senate Majority Leader in New York, who has already gone on record opposing any effort to delay or change the mandates of the climate law.

New York State Energy Research and Development Agency (NYSERDA)

The state agency that issued the memo warning of the steep rise in energy costs due to the 2019 climate law.

Progressive Policy Institute

A left-leaning think tank that last year called the climate law an "undeniable" failure that is "driving up costs for families, constraining reliable supply" and imperiling "the political viability of the state's climate agenda."

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What they’re saying

“Sometimes rule changes are needed to 'fit the times,'”

— Blake Washington, Budget Director for Governor Hochul (New York Post)

What’s next

Governor Hochul appears set to push for changes or delays to the climate law, at least until after the November 2026 election when she is running for reelection. However, she will need the support of the state legislature, where Senate Majority Leader Andrea Stewart-Cousins has already opposed any effort to modify the law's mandates.

The takeaway

New York's ambitious climate law, championed by former Governor Cuomo and doubled down on by Governor Hochul, is now poised to impose significant financial burdens on households and businesses across the state. This threatens to undermine public support for the state's environmental agenda, creating a political challenge for Hochul as she seeks reelection on a platform of affordability.