NYC business leaders push to roll back some of 2019 climate law amid rising costs

New York City business owners say they're struggling to keep up with rising costs from regulations tied to climate rules.

Now, they're pushing on the State Legislature to pass Gov. Kathy Hochul's reforms that would roll back some of the climate legislation passed by New York state in 2019.

Getting "priced out"

The tension between economic development and clean energy policy is intensifying in the city, where business leaders are urging state lawmakers to scale back parts of the state's climate law as costs rise for small businesses.

Shuttered storefronts, lowered gates and hanging locks have become an increasingly common sight in Manhattan's Civic Center, reflecting broader concerns among business owners about affordability.

"It's almost like our own government is pricing us out," said Julio Pena, who has owned an Italian restaurant for decades.

Rising costs tied to energy transitions are adding pressure. Patrick Hall, who owns a flower shop, said he absorbed significant expenses that hit his bottom line.

"I took on the cost of decommissioning the gas burning boiler and installing a split system, HVAC system because we are a florist. So we have to have heating and cooling," Hall said.

Some business owners say they are already seeing the results of government policies trickle down.

"I already saw an increase from the previous month in my [Con Edison] bill," Pena said.

Call for extended timelines

Leaders from Chambers of Commerce across the city gathered on Thursday in support of Hochul's proposed reforms, pointing to troubling business trends.

"We saw, in 2025 was the first year since COVID that we had more businesses close than open. That should be a red flag for anybody," said Randy Peers, president and CEO of the Brooklyn Chamber of Commerce.

Business leaders argue the law's goals are too ambitious in the short term and are calling for extended timelines while maintaining long-term targets.

"Extend the mandates to 2030, reevaluate the interim goals for 2040, but don't abandon the final goals in 2050. We can get there," Peers said.

Ken Lovett, Senior Communications Advisor on Energy and Environment for the governor, said in a statement:

"Reckless policies coming out of Washington D.C. are driving prices up across the board, and New Yorkers cannot be expected to shoulder higher costs. Governor Hochul is pushing for common-sense reforms that will ensure New York remains a national climate and clean energy leader while prioritizing affordability for all New Yorkers and businesses."

However, the New York Civil Liberties Union argues the climate legislation is essential to protecting communities of color that are disproportionately affected by environmental injustice.

State lawmakers have extended budget negotiations, which include the proposed reforms, until April 14.

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