Members of the New York State Senate and Assembly Republican Conferences held a listening session on August 20 with stakeholders across various industries to discuss the potential impacts of the Climate and Community Investment Act (CCIA), a proposal being advanced by Albany Democrats that could increase the cost of gas by as much as 55 cents per gallon and increase home heating costs by more than 25 percent. Another listening session was held earlier this month in Albany.
The legislation would impose a carbon tax of $55 per ton of fossil fuel emissions in order to reach renewable energy mandates under the Climate Leadership and Community Protection Act (CLCP), passed by the Legislature in 2019.
The session was led by Sen. Dan Stec and Assemblyman Robert Smullen (R,C,I,SAM-Johnstown), ranking members of the Senate and Assembly Environmental Conservation Committees, and Assemblyman Phil Palmesano (R,C,I-Corning), ranking member of the Assembly Energy Committee. Discussions revolved around the potential impacts on small businesses, farms, and various sectors of the energy industry. The session provided an opportunity for lawmakers to listen to testimony directly from stakeholders from across those industries.
“No matter how well-intended, legislation has to be weighed for its potential drawbacks. In this case, many of us have serious concerns for people we represent in rural regions who rely on their cars. Public transportation isn’t an option. When someone can’t afford to fill their gas tank, that means kids will miss out on after-school activities, home health aides won’t be able to get to the people who need their care and the cost of essential goods and services will go up. Many people, especially seniors on fixed incomes, have trouble keeping their homes warm during winter. A much bigger fuel bill would only add to their misery when the mercury dips well below zero for weeks at a time. A tax of this magnitude would be incredibly regressive, hurting lower-income New Yorkers the most,” said Stec.
“New Yorkers are still reeling from the devastating impacts of the COVID-19 pandemic and our economy continues to struggle. This out-of-touch bill would be another hit to hardworking New Yorkers and small businesses that will be faced with skyrocketing costs at the pump and increased heating costs. We need to work together on real solutions other than the typical Albany tax-and-spend policies that continue to inflict harm on our already-struggling taxpayers and small businesses,” said Senate Republican Leader Rob Ortt.
“Given that NY contributes just. 0.5 percent of the total carbon emissions globally and 3.3 percent in the U.S., the public clearly deserves to know what the financial impact of implementing these policies will have upon them. While I agree clean and renewable energy needs to be a part of our energy portfolio and strategy, it is equally important, however, that our energy portfolio and strategy address affordability and reliability for families and businesses and the CCIA, and likewise the CLCPA, clearly fails to address these vital areas,” said Palmesano.
“As ranking member for the Committee on Environmental Conservation, I’m always eager to see what ways we as a state can continue to improve and protect our state’s natural beauty. The CCIA, unfortunately, is not the realistic solution. Its proposals reflect a reality we don’t live in, and seek to do serious damage across our state’s economy, an economy already having trouble competing across the nation, and indeed the world. This proposal needs to hit the drawing board again, with a more reasonable scale and timeframe in mind, before we can consider supporting such an initiative,” said Smullen.
According to the Tax Foundation, New York currently has the 7th highest gas tax in the country, at 43.12 cents per gallon, with California currently the highest at 62.47 cents per gallon. This legislation would raise New York’s tax to 98.12 cents per gallon, an increase of more than 127 percent, and would make New York’s gas tax more than 57 percent higher than any other state. New York state has repeatedly been named as one of the worst business tax climates in the nation by the Tax Foundation.
“As members of our communities, we all want to do everything we can to keep and protect New York’s pristine beauty and landmarks and protect our environment for future generations. However, we must respect taxpayers and carefully consider the impacts of action through accurate and unbiased analysis of renewable energy projects, associated impacts and costs, with input from community stakeholders. As the cost of living continues to rise in our communities and across the state, we can’t expect New Yorkers to pay exorbitant new taxes and fees, while potentially paying higher energy costs without any environmental benefit, further pushing residents out of state,” said Assemblyman Josh Jensen (R,C,I-Greece).
“Drastic tax increases on motorists and residents who use home heating oil is not the way to address climate change. This legislation would only make New York more unaffordable and have a disproportionate impact on rural and upstate residents and businesses. If the Legislature is serious about climate change, I encourage them to listen to stakeholders, like we did here today, and come up with workable solutions that don’t rely on large tax increases,” said Sen. Ed Rath.
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