Decarbonize NY - New York's Climate Law in Limbo: What Changes are Coming to the CLCPA?
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New York's landmark 2019 Climate Leadership and Community Protection Act (CLCPA) faces an uncertain future as Governor Kathy Hochul signals openness to softening its ambitious mandates. The law requires 70% renewable electricity by 2030, a 40% reduction in greenhouse gas emissions by 2030 and an 85% reduction by 2050, measured against 1990 levels, but the state is already years behind schedule.
In October of last year, an Albany County Supreme Court ruled that the New York State Department of Environmental Conservation (DEC) violated the CLCPA by failing to issue required emissions regulations by January 2024. The court ordered the DEC to issue regulations by February 6, 2026, but the state filed a Notice of Appeal on November 25, 2025, effectively staying the proceedings while the Appellate Division reviews the case. Legal experts do not expect an appellate court decision until late this year. In the meantime, Governor Hochul has indicated that she planned to "review all … options, including working with the Legislature to modify the CLCPA … in order to protect New Yorkers from higher costs”.
Partly in response to the October court order, the DEC finalized and released its long-awaited Mandatory Greenhouse Gas (GHG) Reporting Program, which implements GHG reporting requirements under the CLCPA. Reporting is limited to large industrial facilities and focuses on direct source emissions. The first year for which reporting is required is 2026 and emissions data reports and verification statements are not due until 2027 (June 1 and December 1, respectively).
THE STALLED CAP-AND-INVEST PROGRAM
The centerpiece of CLCPA implementation—a cap-and-invest program that would charge polluters for emissions—has been repeatedly delayed. Draft regulations were completed in early 2025, but shelved by Governor Hochul over affordability concerns.
Governor Hochul's rationale centers on grid reliability and energy affordability: "The goals are still worthy, but we have to think about the collateral damage of these decisions." The governor argues that post-pandemic inflation, supply chain disruptions, rising project costs and the hostility of the Federal government to clean energy projects require reconsidering timelines—potentially extending compliance periods or lowering reduction targets.
WHERE NEW YORK FALLS SHORT
- Current renewable electricity: ~24% (target: 70% by 2030)
- Emissions reduction achieved: ~15% below 1990 levels (target: 40% by 2030)
- Electric vehicles on road: 180,000 (abandoned target: 850,000 by 2025)
- EV sales percentage: 6% (mandate: 35% by 2026)
The administration has sent mixed signals regarding its commitment to maintaining climate leadership. On the one hand, the DEC has recently approved construction of a natural gas pipeline and extension of a cryptocurrency mining facility's operations—both previously denied under CLCPA standards—suggesting that the administration is already backing away from strict enforcement. On the other hand, the administration has added a $1 billion investment in decarbonization to the 2026 state budget, including $450 million to fund reductions in building emissions and $250 million to accelerate the rollout of electrified transportation, in order to replace the funding expected from the stalled cap-and-invest program.
Contact
Please do not hesitate to reach out to us if you have any questions regarding these developments. Contact Michael J. Clain, Partner, Shanni C. Lynch, Associate, or Kathrine H. K. Pedersen, Law Clerk.
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