New York Gov. Kathy Hochul on May 3 signed into law statewide restrictions on natural gas and fossil fuel use in new construction, one day after the state legislature approved the policy as part of New York's annual budget process.
The final policy, outlined earlier in the week after a protracted debate, put New York on pace to begin prohibiting gas use in new buildings by 2026, with the policy expanding to all construction by 2029. Like many cities and states, New York will enact the policy through an update to its building energy codes, and the law includes various exemptions.
New York followed states like Washington and California, along with Washington, DC, in requiring or heavily incentivizing all-electric new construction, though New York is the first state to enshrine the policy in state law.
A similar gas ban bill failed to reach completion in 2022 along with the Build Public Renewables Act, which also passed as part of the budget process on May 3.
"New York is committed to building a clean economy and protecting our environment for future generations," Hochul said in a May 3 news release. "This budget shows an unprecedented commitment to green infrastructure, reducing emissions from the building sector, and protecting clean water."
Gas industry response is mixed
The American Public Gas Association (APGA), which represents 730 municipal gas utilities, said the policy would exacerbate electric grid reliability challenges and reduce energy efficiency, noting that parts of New York remain heavily reliant on gas-fired generation. It cautioned other states against following suit.
"APGA is disappointed by New York's unprecedented decision to enact a statewide ban on the direct use of natural gas in new construction, which significantly undermines New Yorkers' access to affordable, reliable and efficient energy," the association said in a May 3 news release.
National Grid USA, which distributes gas in parts of New York City and Long Island, said it was committed to helping New York meet its climate goals.
"Electrification is a cornerstone of New York's clean energy transition, and we look forward to working with our partners across the state to support the state's climate goals while ensuring affordable, safe, and reliable energy for the customers, communities and businesses we serve," the company said in an email.
In February, National Fuel Gas Co. CEO David Bauer warned that consumers would bear the cost of transitioning to electric heating. National Fuel Gas Distribution Corp. President Donna DeCarolis cast one of the few votes against the final policy blueprint from New York's Climate Action Council that recommended the statewide gas ban. DeCarolis said the plan imposed a one-size-fits-all policy on a diverse state.
Environmentalists celebrate ban, criticize timing
Climate activists widely applauded the gas ban, though many criticized Hochul for pushing the staggered implementation dates back from the end of 2023 and July 2027, as proposed in state legislation.
"Governor Hochul and legislative leaders are taking a historic step, making New York the first state in the nation to prohibit fossil fuels in new construction by law," Alex Beauchamp, northeast region director at Food and Water Watch, said in a news release. "Unfortunately, we're still moving too slowly, and Governor Hochul is to blame."
New York's Climate Action Council, which developed policies to achieve the state's emissions reduction goals, recommended pushing back the implementation dates to 2025 and 2028 because code officials do not plan to update energy efficiency codes until 2024. Hochul and lawmakers settled on the final day of 2025 and 2028 for deadlines.
Environmentalists also urged Hochul to pass the NY Home Energy Affordable Transition Act, or NY HEAT. Neither Hochul nor the State Assembly included the NY HEAT bill in their budget proposals, according to Food and Water Watch.
The bill would change New York's public service law by giving state utility regulators new authority. It would overturn residents' legal right to gas service and end the practice of spreading the cost of new gas hookups across the entire ratepayer base, making connection more expensive for new customers.
"Governor Hochul had the chance to include the NY HEAT bill in the state budget that would update our aged law to stop this insanity, but it is clear she chose fossil fuel lobbyists over us, so now it is time to turn up the heat in the legislature to pass this crucial law," Sane Energy Project Director Kim Fraczek said in a May 1 news release.
Some advocates said they were heartened that a proposal to allow local governments to opt out of the statewide gas ban did not survive.
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