Climate Action & the NY Fossil Fuel Industry

The 2023 session of the New York state legislature is well underway at this point, and a flurry of important climate and clean energy bills have been introduced in the General Assembly and State Senate. Following the recent release of the state plan approved by the Climate Action Council, as required by the 2019 Climate Leadership and Community Protection Act (CLCPA), lawmakers are seeking ways to buttress its recommendations.

State legislators welcome Gov. Hochul for her 2023 State of the State address. Photo courtesy of NYS Senate Media Services licensed under CC By 2.0.

Given the potential of the various proposals to accelerate an equitable energy transition, it’s not surprising they have stirred up opposition and anxieties. In particular, the fossil fuel industry has mounted an aggressive lobbying campaign to undermine these far-reaching efforts and hamper the ability of the state to meet its climate targets.

A recent report issued by the nonprofit Public Accountability Initiative lays out in great detail the attempts of the industry to obstruct climate action in New York. It points out that millions of dollars have been spent by the industry and its supporters “to delay, water down and otherwise frustrate the implementation of the CLCPA and other key climate legislation.”

“Legislators, communities and other stakeholders invested in a cleaner, greener, decarbonized future for New York must stay vigilant around efforts by the fossil fuel industry to muzzle and erode” the state’s climate actions, the report warns.

Not only are the oil and gas industry representatives engaging in aggressive inside lobbying of legislators in Albany, they are working hand in hand with gas utilities to disseminate misinformation among the general public, muddying the waters and generating unwarranted fears. Deploying online ads and robocalls, they are raising the prospect of “power outages and cost increases.” “We need all energy options to keep the lights on and heat flowing,” they misleadingly claim.

The fossil fuel companies have been mobilizing their customers to contact state lawmakers and express their opposition to building electrification. What’s especially galling is that New York State hands out about $1.5 billion each year in tax subsidies to these companies, which are then turning around and spending a significant portion of the dollars to fund their misinformation and lobbying machine.

There is hope, however, that this time the industry will not be as effective as it has been in the past at stopping crucial climate action. Rich Schrader, New York State policy director at the Natural Resources Defense Council, notes that the oil and gas groups engaged in these tactics last year and have now lost the element of surprise. In addition, the advantages of new technologies such as cold-weather heat pumps have come into sharper focus.

“The politics have changed, information has changed, and the [federal] incentives are much clearer now,” he observes. “All that weighs against their propaganda.”

Time for an Energy Policy that Makes Sense

We all know that a clear, predictable, and fair national policy encouraging investment in energy efficiency and renewable energy is the key to any real, viable solution to avoiding runaway climate change. If this is the case, then why does the overwhelming bulk of our federal tax dollars go to subsidizing the oil, coal, and gas industries and not clean energy? Why are the tax credits that support the fossil fuel industry permanent and unchallengeable? Why are the tax credits that support renewable energy temporary and constantly up for grabs?

A Shell oil platform in the Gulf of Mexico

According to a 2010 Environmental Law Institute study, the U.S. government provided $72 billion between 2002 and 2008 to the fossil fuel industry. About $54 billion of that total took the form of permanent tax credits for oil, coal, and natural gas producers. During that same period, the renewable energy industry received only $29 billion, most of it also in the form of federal tax credits. The difference is that none of the renewable energy tax credits are permanent.

Of course, as David Roberts writes in Grist, “Comparisons of direct subsidies capture only the tip of a giant iceberg – most of fossil fuels’ big advantages are invisible, beneath the surface, and entirely taken for granted.” Even a quick glance at the indirect subsidies makes clear how uneven the playing field is. External costs such as the public health toll paid for air and water pollution and the national security price of maintaining our addiction to oil amount to trillions of dollars.

Then there are the costs of climate change as superstorms such as Sandy become more frequent and violent. Early estimates of the damage from Sandy range up to $50 billion. And let’s not forget the enormous sunk costs of an infrastructure built on the assumption of cheap fossil energy: highways, suburbs, airports, and the like.

Viewed in this light, as Roberts vividly observes, shifting “from fossil fuels to renewable energy is not like going from Coke to Pepsi; it is to build a new world.” Not even Nate Silver, as good as he is, can tell us how long this new world will take to build and whether we will get far enough along in time to stave off runaway climate change. But one thing we should all be clear about: it’s long past the time to get started, and a national energy policy geared towards this future is an essential first step.