New York Governor Hochul Delivers 2026 State of the State

New York Governor Hochul delivered her 2026 State of the State address. In focusing on making New York more affordable, the Governor addressed utility costs, AI data centers, the benefits of solar and electric vehicles (EVs), and more. She also proposed additional funding to protect water and reduce energy costs. community input and environmental protections are key to promoting economic development.

As the federal government prioritizes the interests of corporate polluters, an affordable, safe, and healthy New York depends upon increased renewables, transmission, and battery storage, along with safeguards against toxic chemicals and pollution.

The following statement is attributed to Liz Moran, Earthjustice Policy Advocate:

“Governor Hochul is right to protect New Yorkers from being forced to subsidize the extremely energy-intensive AI data center industry. Across the country, unchecked data center expansion is leading to skyrocketing energy bills, massive increases in air and water pollution, and even more reliance on expensive fossil fuels. If Governor Hochul is serious about protecting New Yorkers from the predatory big tech and fossil fuel industries, she must require data centers to build their own clean, safe renewable energy sources as defined under the climate law. Otherwise, AI data center expansion will become New York’s next affordability and environmental crisis.”

Earthjustice offers views on the following items mentioned or alluded to in the Governor’s State of the State:

• Data Centers: Read more about Earthjustice’s policy recommendations for managing the impacts of AI data centers here. Ample evidence shows that building new fossil fuel infrastructure to power data centers drives up utility rates for ratepayers, while energy paired with transmission and storage is far cheaper and far less polluting for host communities. Without proactive legislative action, everyday New Yorkers will be left to pay not only for the massive energy consumption of data centers, but also for the fossil fuel infrastructure built to power facilities that may never materialize. States that previously welcomed and subsidized unchecked data center expansion have since experienced buyer’s remorse, and are now adopting policies to protect ratepayers. Lawmakers are urged to learn from these states by holding tech companies accountable for their energy use and pollution, rejecting fossil fuel expansion, and protecting working families and small businesses from rising energy bills. As such, data center interconnections should not be sped up until the pollution and energy impacts are understood and mitigated.
• $50M for EmPower+: Earthjustice urges the Governor and the Legislature to include at least $200M for EmPower+ in the SFY2027 budget. As the Governor rightfully notes, EmPower+ is a critical, and oversubscribed, program that helps low and moderate-income households reduce their energy costs and make their homes more comfortable while cutting emissions. We are pleased to see the Governor propose an increase in funding towards this program, but given the severity of the energy affordability crisis and the popularity of this program, far more is needed.
• Excelsior Power: Incentivizing grid flexibility through the adoption of smart thermostats and other technologies is an exciting move that will put money back in New Yorkers wallets while helping to avoid millions in system costs and reduce our dependence on polluting power plants. We look forward to reviewing the details of this proposal.
• Tackling Utility Costs: New York must advance policies to protect consumers from skyrocketing utility bills and to hold utilities accountable. Ensuring New Yorkers have access to a Utility Intervenor and a Utility Intervenor Fund, a model that has been successful in other states, would enable ratepayers to have a voice in rate cases. As the Governor notes, far too many New Yorkers who qualify for the Energy Affordability Program (EAP) are not enrolled – we are eager to see the state hold utilities accountable to ensure the program is reaching those who need it. Getting people enrolled in the EAP will save all New Yorkers money. Additionally, New York must adopt policies to avoid unnecessary spending on costly fossil fuel infrastructure – the main driver of rate increases. Signing the repeal of the 100-foot rule was a key step in this regard, but more must be done.
• $3.75B for Water Infrastructure: New York’s extremely successful Clean Water Infrastructure Act (CWIA) has been long-overdue for increased funding. We are thrilled to see the Governor’s proposal to bolster this program with historic levels of funding, which protects water quality and public health, while creating good jobs. With so much uncertainty at the federal level, additional funding for the CWIA will help ensure New York communities have the resources they need to replace and repair essential water infrastructure.
• Lead in Drinking Water: We are encouraged to see the Governor emphasize the importance of tackling lead in drinking water. New York must stay on track with the newly amended Lead and Copper Rule and ensure communities have the resources they need to replace all lead service lines at no cost to individual homeowners or renters. We hope to see dedicated funding towards these efforts within the Clean Water Infrastructure Act.
• Solar in Schools: The Governor is right to identify the urgent need – and enormous untapped opportunity – of greening New York Public Schools. However, this will require far more than an adjustment to the Building Aid rules. We urge the Governor to include, at a minimum, another $50 million for Green Schools funding in the Sustainable Future Fund.
• Streamlining SEQR: Environmental review under State Environmental Quality Review Act (SEQR)remains a critical tool to highlight and mitigate potential environmental harms from various projects. Earthjustice agrees SEQR should not hold up housing development in the circumstances set forward by the governor, or the narrow set of beneficial infrastructure projects outlined like new parks and green stormwater management. But carveouts from SEQR must remain narrow. Communities deserve to understand and be able to prevent potential environmental harm from larger projects and other infrastructure.
• EV Charging Sales Tax Exemption: We welcome the proposal to exempt commercial EV charging from sales tax, which will further enhance the overall financial benefits of EVs over combustion cars. There is much more New York can and should be doing to accelerate the transition to electric vehicles to save fleets and consumers money and clean up our air. The Governor’s inter-agency task force created last spring must do more to deliver on their promises to support expanded public and private charging infrastructure, support fleet transitions, and expand incentive programs.
• $425M Environmental Protection Fund (EPF): The funding provided by EPF is a win for New York communities that protects our air, water, and natural resources while creating jobs and improving our economy. We are pleased to see the Governor continue a commitment to these programs, however, we urge the Governor and Legislature to work towards funding EPF at $500 million. With the federal government walking away from environmental funding and protections, our communities need resources to fill any gaps and keep up with the impacts of our changing climate.
• Sun and Soil Program: Enabling working farms to pursue additional solar offers tremendous benefits not only to farmers, but New York communities. We are excited to see the Governor pursue a program that will allow farmers to pursue additional revenue through solar while maintaining farming activities, which will help keep farms profitable while having the added benefit of cutting climate pollution and providing energy to the community.