Hochul launches $1B clean climate plan as state, federal energy agendas diverge

ALBANY, N.Y. (NEXSTAR) — Governor Kathy Hochul met praise and criticism after announcing a new $1 billion climate plan to advance clean energy projects across New York. The initiative, called the Sustainable Future Program, represents the largest single climate investment in New York’s history, targeting everything from school buildings to public transit.

The program, first announced in her State of the State address, will invest $50 million into EmPower+ to give low- and moderate-income residents home energy checkups and upgrades, with a focus on installing heat pumps, sometimes known as mini-splits. A heat pump moves heat efficiently for both heating and cooling.

The plan dedicates $200 million to expanding thermal energy networks, which share heating and cooling pipes between multiple buildings. This funding will go to projects at SUNY campuses, including $50 million for SUNY Purchase, $68 million for SUNY Buffalo, and $22 million for SUNY Stony Brook.

To expand clean transportation, the plan earmarks $100 million for zero-emission school buses and their charging infrastructure. It also allocates at least $50 million for medium- and heavy-duty vehicle charging and another $50 million in rebates for electric vehicle charging stations at workplaces and apartment buildings.

Fifty million dollars will help public schools that need funds to lower their carbon footprint and improve air quality. New York State Homes and Community Renewal, or HCR, will also launch a Green Small Buildings Program with $150 million to help homeowners and renters make energy-efficient upgrades. The New York Power Authority also gets $200 million to finance renewable energy projects and lower costs for utility customers.

Hochul also spoke about affordability, acknowledging that the climate plan has a big price tag and arguing that doing nothing is even pricier. The governor also referred to congestion pricing, which she said has resulted in 17.6 million fewer vehicle rides into a Manhattan since January, which she said has led to an “extraordinary reduction in emissions” and cleaner air.

Hochul was in New York City to make the announcement in honor of climate week. She appeared alongside Democratic Delaware Governor Matt Meyer at a roundtable discussion with the U.S. Climate Alliance.

Responding to the Sustainable Future Fund announcement, the Building Decarbonization Coalition’s New York Director, Lisa Dix, lauded the plan “to lower energy costs for families and create thousands of good-paying jobs.”

Environmental Advocates NY liked the plan, which they said shows states leading on climate even when the federal government is scaling back its efforts. They also said they would urge the governor further by rejecting fracked gas pipelines.

New Yorkers for Clean Air agreed, saying that the fund is a critical step toward cleaner air, lower costs, and stronger communities, and praising support for renewables, building decarbonization, and electric school buses. And ALIGN, a coalition of labor, climate, and community organizations, called the funding “shining example of the clean energy infrastructure New York needs on a mass scale.” ALIGN Climate Director Jenille Scott said that in the face of federal changes, the only reaction is action.

But Frack Action, a group opposing fossil fuels and fracking—hydraulic fracturing—had critiques. They backed the funding for renewables while decrying Hochul’s alleged deal with the Trump administration to fast-track two natural gas pipelines, the Williams NESE pipeline and the Constitution pipeline.

The group’s director, Julia Walsh, said the governor was caving to President Donald Trump on fracking. According to numbers from Walsh, NESE would cost more than $1.3 billion and put National Grid’s customers in New York City and on Long Island on the hook for construction costs, with bills increasing 3.5%.

State Senator Mario Mattera, a Republican and the ranking member of the State Senate’s energy committee, offered criticism from the opposite direction. Reached for comment via phone, he offered praise for thermal energy technology that recycles wastewater. But the senator nonetheless maintained that the state has been putting all its eggs in one basket by relying too much on wind, solar, and battery storage.

Mattera said the state should expand energy sources by retooling existing power plants with carbon capture, a technology meant to prevent industrial emissions from hitting the atmosphere. He called it “the most inexpensive and most efficient way to move forward.”

The senator pointed out that the governor’s previous budget had requirements for all-electric buildings by 2026 and that the Republican conference wants to either repeal or pause this mandate. He said, “Our grid cannot handle it, especially on Long Island. Our grid is antiquated. We need to invest in the grid and then invest in renewables.”

Mattera said the summer saw a 30% natural gas capacity shortage and that the NESE and Constitution pipelines are important for the state’s future. That’s why he said Hochul should work with the president and Environmental Protection Agency Administrator Lee Zeldin going forward.

While Hochul championed large-scale investments in clean energy to accelerate the state’s green transition, U.S. Secretary of Energy Chris Wright advocated for fossil fuel production, criticizing climate policies he called ineffective. Also on Wednesday, Wright was in New York City to promote what he called a commonsense refocus on fossil fuels like natural gas, arguing that the race for net zero hurts the economy and makes energy more expensive.

Wright was in New York City speaking to journalists at the U.S. Mission to the United Nation’s Foreign Press Center. Their simultaneous presence in New York during Climate Week put the different state and federal approaches to climate policy on display. While Hochul’s plan focuses on fighting what she called federal rollbacks, the energy secretary’s vision centered costs, deindustrialization, and a reduction in energy access.

Wright added that the Trump administration’s agenda focuses on natural gas and nuclear power, which he called “by far the two biggest potential needle movers on greenhouse gas emissions.” He said the administration won’t prioritize greenhouse gas reductions, but would target artificial intelligence, reindustrializing America, and lowering costs for citizens.

Wright called natural gas the “fastest growing energy source on the planet” and said it generates 43% of U.S. electricity. He said there is “no physical way that wind, solar and batteries” could replace the many uses of natural gas, which he said is a critical component for heating homes, manufacturing, and food production.

Echoing Mattera, Wright said that renewable power don’t work at peak demand times, like still winter nights when people consume the most energy. He said that governments have spent $5 trillion on subsidies and mandates for wind, solar, and batteries, which in 2024 provided just 2.6% of the world’s energy. He also said that the Department of Energy will return $13 billion earmarked for wind, solar, batteries, and electric vehicles.

Wright also commented on offshore wind, saying that no projects have been canceled but that their work has been suspended over “numerous complaints and lawsuits” on their effects on wildlife. He added that five offshore wind farms are currently under construction. At the Climate Alliance roundtable, the governor said she would keep fighting any efforts to shut down offshore wind, because workforce and private sector investments are already underway.

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