Business Organizations Call for Caution on Costly Energy Proposal

May 23rd, 2019

The state’s leading business organizations – Unshackle Upstate and NFIB – renewed their collective opposition to proposed legislation that would impose new energy mandates on consumers and businesses across New York. The Climate and Community Protection Act (S2992/A3876) is currently under consideration by the state Senate and Assembly would eliminate all greenhouse gas emissions by 2050. These bans extend to products New Yorkers use every day like, the engines that power their cars and tractors, and the furnaces that heat their homes. The organizations cited the widespread, detrimental impacts this sweeping proposal would have on energy consumers and the state’s economy.

“The small businesses that employ nearly 4 million New Yorkers rely on affordable energy supplies at globally competitive prices to operate and run all aspects of their businesses from the shipment of products to the powering of equipment. All New Yorkers, including small businesses, pay among the highest energy costs in the nation, in part because of fees already assessed on energy. The Climate Community Protection Act would likely exacerbate these costs through additional taxes while also jeopardizing the long-term stability and reliability of affordable energy in New York without offering any concrete alternatives. This approach will simply put New York’s small business at an even greater competitive disadvantage than they already face,” said Greg Biryla, NFIB’s New York State Director.

– A 2018 survey to NFIB’s 10,500 members found that 87% opposed new or additional taxation of carbon-based energy production, transmission, distribution and/or use in New York.

“All New Yorkers should support policies that increase the use of renewable energy and reduce our greenhouse gas emissions. Achieving these goals, however, should not require putting our state at a significant economic disadvantage. Unfortunately, the Climate and Community Protection Act will make energy more expensive and less reliable. Businesses and residents already pay $1.6 billion annually in taxes, fees and surcharges on their energy bills. Forcing them to pay billions more will result in significant job losses and continued outmigration,” said Michael Kracker, executive director of Unshackle Upstate.

Before any further discussions on the Climate and Community Protection Act, the organizations encouraged lawmakers to consider current legislation that would direct to the state energy planning board to conduct a study of the technical and economic feasibility of a 100% renewable energy system. S2352A/A2720 is sponsored by Energy Committee Chairs in both houses, Senator Kevin Parker and Assemblyman Michael Cusick.