New York State Climate Leadership and Community Protection Act Pumps Up the Marketplace

In July, 2019, New York State passed the Climate Leadership and Community Protection Act, which prepares the state to lead the way in conversion from fossil fuels to electrification. This legislation requires New York to reduce economy-wide greenhouse gas emissions 40 percent by 2030 and no less than 85 percent by 2050 from 1990 levels. The law creates a Climate Action Council charged with developing a scoping plan of recommendations to meet these targets and place New York on a path toward carbon neutrality.

Elimination of combustion vehicles is the top component of getting to the emissions goal. The Scoping Plan includes a move to zero-emissions passenger and commercial vehicles. This will be supported by state incentives, rebates and financing for drivers and fleet operators to make the move to electric and hydrogen ZEVs.

Electrification of heating and hot water systems in nearly all buildings is the second key strategy for emissions reductions via building decarbonization and depends upon energy efficiency improvements in all buildings and 100% zero-emissions electrification by 2040 under the Climate Act. Eliminating GHG emissions from New York’s building stock by 2050 will require broad, systemic changes. There are 6.2 million buildings in NY State, including 4.9 single family homes, 250,000 multi-family buildings and 370,000 commercial and institutional buildings. By 2030, more than 200,000 homes every year will need to upgrade to all-electric and energy efficient systems. 370,000 office, retail, restaurant, school, and other commercial and institutional buildings in New York State will need to cut energy use in half and stop using fossil fuels for heating and hot water. Decarbonizing New York’s building stock will deliver significant job growth and economic opportunity throughout New York State. Companies who are positioned and trained to provide technical services to make these conversions will be in high demand. HVAC and hot water upgrades and replacements will account for over half the sectors employment opportunities. HVAC technicians who are already in high demand will need to be recruited, trained and retained in order to keep up with the potential opportunities for sector growth.

In order to accelerate the transition, New York State will provide incentives for single family, multifamily, and commercial and institutional building owners that speed uptake and help to transform the market for building efficiency, electrification, and decarbonization. There will also be a system for public and private financing to make these requirements accessible to all stakeholders. The state is also planning to support workforce education, training, job placement and development that equip the state’s current and future workforce to design, install, inspect, maintain and operate healthy, comfortable, low-carbon buildings while increasing clean energy job placement. All of this adds up to economic and employment growth for the state and the building services industry over the next several decades.

To read more about New York State’s Climate Act, review the draft scoping plan here.

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