New York’s Climate Ambitions: Innovation, Opposition, and the Cost of Change

February 11, 2025 by Nicholas Alois

Cars driving in an area of Manhattan that is within the boundaries of New York’s congestion pricing program.

New York has made it a mission to reduce its state’s negative climate impact. However, in working toward this goal, many resent the change associated with new climate initiatives – particularly those impacting their wallets.

New York has been steadfast and innovative in addressing and mitigating the behaviors that contribute to ongoing climate concerns. New York’s efforts in this space have earned it a reputation for being one of the few leading states in reducing environmental harms and negative impacts.[1] The state regularly bolsters its environmental law repertoire, already consisting of the Climate Leadership and Community Protection Act, as seen by recently adding two substantial pieces – congestion pricing and the New York Climate Superfund.[2] While New York’s valiant climate efforts are respected and even modeled by other states, some parties have expressed distaste for the new normal in New York. President Trump, other states, and New Yorkers themselves have voiced their opinions through lawsuits and general public outcry.[3]

New York’s congestion pricing has been extensively discussed amongst the media, local communities, and government officials. The first of its kind in the country, New York’s congestion pricing charges drivers of regular passenger vehicles up to $9 when they enter Manhattan at or below 60th Street.[4] The charge, which is at its highest 5 AM to 9 PM during the week and 9 AM to 9 PM on the weekends, is scheduled to reach $15 by 2031.[5]

Despite the projected positive benefits to New York’s transit system and the environment, many have mixed reactions to the congestion pricing program. The funds raised from congestion pricing will be used to obtain $15 billion in bonds to contribute to improving New York’s transit system, while the plan is also expected to lower vehicle traffic and improve air quality.[6] The system spurred lawsuits from a wide range of parties, including New Jersey Governor Phil Murphy, labor unions in New York City, and Manhattan residents.[7] Workers, such as first responders, that must commute into the zone and cannot rely on public transportation because of their work hours, are struggling to keep up with paying the toll.[8]

President Trump, who was born and raised in New York City, has also been extremely critical of the program, as he told voters he will axe the scheme by repealing its federal approval during his campaign.[9] Since his first day in office, the same day the New Jersey Governor sent a letter to request the end of congestion pricing in New York, President Trump has met with New York Governor Kathy Hochul multiple times regarding the plan.[10] Although a number of people oppose the program, recent studies show it is not only working, but also desired by a majority of New York City residents.[11]

In addition to congestion pricing, New York recently passed the New York Climate Superfund, the second of its kind in the United States.[12] The new fund will collect $75 billion in contributions from fossil fuel companies, including coal, oil, and natural gas companies, over the next 25 years.[13] The contributions into the fund will then be used for damages incurred by climate change.[14] Despite New York being constantly plagued by intense storms that require significant rebuilding, this new climate initiative has also faced fierce opposition. Twenty-two states have sued New York, stating that the New York Climate Superfund is not only unconstitutional, but that the Clean Air Act preempts it.[15] West Virginia leads the suit, alleging “politically motivated ‘outreach’” by New York to penalize fossil fuel companies for their previous emissions that were legal at the time.[16]

On top of these two new climate initiatives, New Yorkers are expressing concern over the impacts climate policy is having on their utility bills. Con Edison, who provides most New Yorkers with their electricity, is seeking approval from the state to raise its electric and gas bills over 10%, beginning in 2026.[17] These rate increases come after studies show that the average gas and electric bill in New York City has increased $154 per month since 2020, forcing New Yorkers to pay almost $2,000 a year more for utilities now than what they did five years ago.[18] The 11.4% increase on electric and the 13.3% increase on gas will bring the average monthly Con Edison bill to just under $514.57.[19] Con Edison claims that the rate increases are necessary to comply with New York’s Climate Leadership and Community Protection Act.[20] The 2019 Act, which requires a 40% reduction of greenhouse gas emissions by 2030 and eventually 100% zero-carbon emission electricity in 2040, has compelled Con Edison to address its electrical grid.[21]

While New York’s climate initiatives may result in growing pains for some residents, they are likely crucial to the long-term environmental health of the state. For New York to continue to be a leader in this space, new endeavors must be pursued to protect its cities, coastlines, and land, despite the backlash from other government officials. However, perhaps going forward, New York lawmakers should take into account the financial burden new climate initiatives have on their local communities.

 

 

[1] Joanna Foster, These four states are winning on climate. And they’re not all the ones you’d expect, Environmental Defense Fund (Jan. 31, 2023), https://www.edf.org/these-four-states-are-winning-climate-and-theyre-not-all-ones-youd-expect.

[2] Rich Schrader, Separating Fact from Fiction: Setting the Record Straight on New York’s Climate Law, NRDC (May 6, 2024), https://www.nrdc.org/bio/rich-schrader/separating-fact-fiction-setting-record-straight-new-yorks-climate-law; Olivia Gieger, New York Climate Superfund Becomes Law, Inside Climate News (Jan. 11, 2025), https://insideclimatenews.org/news/11012025/new-york-climate-superfund-becomes-law/; Jake Offenhartz, Driving into Manhattan? That’ll cost you, as new congestion toll starts Sunday, Associated Press (Jan. 5, 2025), https://apnews.com/article/nyc-congestion-pricing-manhattan-traffic-5a8a6de4495d687079290918f5a499c2.

[3] Marcia Kramer & Jesse Zanger, President Trump considering ending congestion pricing, highly-placed source says, CBS News (Jan. 31, 2025, 7:42 PM), https://www.cbsnews.com/newyork/news/trump-hochul-discuss-ending-congestion-pricing-source/; Jonathan Stempel, New York sued by 22 US states over $75 billion climate superfund, Reuters (Feb. 6, 2025, 3:38 PM), https://www.reuters.com/legal/new-york-is-sued-over-75-billion-climate-superfund-2025-02-06/; Carl Campanile & Georgett Roberts, Gov. Hochul’s green energy push drives average New Yorker’s ConEd bill up $154 a month in just five years, New York Post (Feb. 6, 2025), https://nypost.com/2025/02/05/us-news/con-ed-proposes-massive-rate-hikes-that-could-send-new-yorkers-gas-electric-bills-soaring-thanks-to-hochul/#:~:text=Con%20Edison%20is%20proposing%20another,than%20customers%20paid%20in%202020.

[4] Matthew Euzarraga et. al, New York City’s congestion pricing plan: Fees and facts, Pix 11 (Jan. 5, 2025, 7:33 AM), https://pix11.com/news/local-news/new-york-citys-congestion-pricing-fees-and-facts/.

[5] Nick Reisman & Ry Rivard, First congestion toll plan in US facing serious hurdles under Trump, Politico (Jan. 5, 2025, 7:00 AM), https://www.politico.com/news/2025/01/05/hochul-manhattan-toll-plan-trump-00196489.

[6] Id.

[7] Id.

[8] Noorulain Khawaja, First responders in congestion pricing zone say toll is a financial burden, Spectrum News NY 1 (Feb. 5, 2025, 9:00 AM), https://ny1.com/nyc/all-boroughs/transit/2025/02/04/first-responders-midtown-lower-manhattan-congestion-pricing-financial-toll.

[9] Dharna Noor, Trump reportedly considering halting New York’s hard-won congestion pricing, The Guardian (Jan. 20, 2025, 12:55 PM), https://www.theguardian.com/us-news/2025/jan/30/trump-nyc-congestion-pricing.

[10] Id.

[11] Alecia Reid, 6 in 10 say they want NYC congestion pricing to continue, new poll finds, CBS News (Feb. 5, 2025, 12:01 AM), https://www.cbsnews.com/newyork/news/new-york-city-congestion-pricing-morning-consult-poll/.

[12] See Gieger, supra note 2.

[13] See Stempel, supra note 3.

[14] Id.

[15] Id.

[16] Id.

[17] Giulia Heyward & David Giambusso, Con-Ed floats a double-digit hike in NYC’s utility rates amid soaring energy costs, Gothamist (Feb. 3, 2025), https://gothamist.com/news/con-ed-floats-a-double-digit-hike-in-nycs-utility-rates-amid-soaring-energy-costs.

[18] See Campanile & Roberts, supra note 3.

[19] James Cirrone, New Yorkers rage over soaring gas and electric prices amid Democrats’ green bill, Daily Mail (Feb. 6, 2025, 1:34 PM), https://www.dailymail.co.uk/yourmoney/article-14368203/new-yorkers-rage-gas-energy-prices-kathy-hochul-democrats.html.

[20] See Campanile & Roberts, supra note 3.

[21] Id.