End Fossil Fuel Subsidies

Science shows that greenhouse gas emissions from fossil fuels drive the climate crisis and pollute communities — meanwhile, that industry reaps unprecedented profits.

In the past year, global temperatures have broken records, yet so have profits among the West’s largest privately held oil companies.

New York financially incentivizes destructive fossil fuels, exempting the industry from $1.6 billion of Sales and Use Tax and Petroleum Business Tax every year. This tax was first introduced for infrastructure funding in 1983, but since then the industry has wielded its influence to maintain these tax breaks and inflate profits. With our state now facing a multi-billion-dollar budget deficit, it is time to rethink these handouts. Repealing fossil fuel industry tax subsidies will help close the budget gap and signal our opposition to the industry that is a lynchpin in the climate crisis and aggravates environmental injustices.

The Stop Climate Polluter Handouts Act amends the tax code to remove over $330 million in tax handouts to the climate-polluting fossil fuel industry. It pinpoints incentives that benefit the highest polluting fuels and their most unreasonable uses, including high-emission commercial airline fuel and low-grade shipping "bunker" fuel, the operation of fracked gas infrastructure, industry research and development, and more. The Act preserves tax breaks that benefit the public, so the average lower- and middle-income New Yorker will not be significantly impacted, and job losses are not expected.

New York needs the Stop Climate Polluter Handouts Act in order to...

1. Stop incentivizing fossil fuels: Tax breaks should go to businesses offering public benefits, not to the wealthiest industry that causes mounting harm. Yet global fossil fuel subsidies have surged to $7 trillion annually, far higher than those for clean energy. We thereby give climate polluters the green light to keep up their destructive activity.

2. Stop inflating industry profits: Fossil fuels are one of the most profitable industries in the world, raking in $3 billion a day with profits that doubled from 2021 to 2022. Taxpayer money should not be used to further inflate industry profits.

3. Protect people and communities: Intensifying heat waves, floods, and storms already wreak havoc across the state, with disproportionate impacts on low-income areas and communities of color. We must stop incentivizing the polluters that exacerbate environmental injustices.

4. Strengthen the state budget: Repealing these handouts will help balance our state’s budget and reduce any deficits. The Act would save over $330 million in annual revenue.

5. Reach Climate Leadership and Community Protection Act (CLCPA) goals: Fossil fuel subsidies are outdated fiscal incentives, are misaligned with the CLCPA, and jeopardize our ability to reach legally mandated targets — a 100% renewable power sector and a 40% reduction in greenhouse gas emissions by 2040. To reach CLCPA goals, we must stop relying on fossil fuels, and a key step is to stop subsidizing them.

6. End unjust/inequitable airline subsidies: Airlines are subsidized with over $119 million a year, all while posing major environmental justice violations to communities surrounding commercial airports. Aviation subsidies inequitably benefit the small group of high earners who comprise the majority of frequent flyers — just 12% of adults account for 68% of flights. Federal rules designate aviation as "non-obligated," preventing New York from capping its emissions. New York must take action where it can by ending these subsidies.

Climate policy is popular with New York voters.

Voters in New York State supported the 2022 Bond Act and Environmental Bill of Rights in large numbers. Voters nationwide support ending fossil fuel subsidies by a 24-point margin.

Bucks for Boilers

Switching from polluting fossil fuel heating systems to clean, efficient heat pumps is an important step that New Yorkers can take in order to reach our urgent climate goals.

Starting in 2030 for smaller buildings and 2035 for larger ones, the Bucks for Boilers Act will help facilitate this transition by providing up-front financing to make the switch and phase out new oil- and gas-fueled boilers at the most logical time — when their current boiler dies and the system needs replacement. The bill also provides the necessary subsidies, tied to strong labor standards, to repair and weatherize homes.

The Bucks for Boilers Act offers upfront full-coverage subsidies to low- and moderate-income households and a sliding scale for higher income individuals, so everyone benefits from this program.

NYPIRG and countless student and environmental rights advocates have fought tirelessly over the past five decades to ensure that public officials prioritize public health over special interests. Bucks for Boilers puts money in people's pockets to make their homes healthier and upgrade their property value and overall quality of life, doing exactly this.