Advocates Applaud All-Electric Building Act in One House Budgets, Push for NY HEAT in Both

ALBANY, NY (03/14/2023) (readMedia)-- Today, the New York State Senate and Assembly released their one house budget proposals. In response, Richard Schrader, NRDC's New York Legislative and Policy Director and representative of the Better Buildings New York Coalition issued the following statement:

"We applaud both the Senate and the Assembly for demonstrating their commitment to New York's clean energy future by including the All Electric Building Act in their one house budget proposals. But that future will not be secure without Assembly support for NY HEAT. Both bodies must ensure that the final state budget aligns New York's utility investments with the twin imperatives of affordability and pollution reduction. We must end the expansion of polluting infrastructure that costs New Yorkers $200 million every year and codify protections for low-income residents. The Assembly cannot cave to the fossil fuel industry's lobbying and lies and must instead stand with the majority of New Yorkers who support getting off gas with the NY HEAT Act."

The fossil-fuel industry spends millions to advance their political goals – last year, Governor Hochul and the state senate supported the All-Electric Building Act but a campaign financed by the fossil fuel industry that spread disinformation and lies killed the bill. They're back at it this year, spreading an explicitly wrong yet pervasive myth that gas stoves will be ripped from kitchens. Last month, National Fuel Gas used their customers' personal data to facilitate robocalls to spread fear and lies. The robocall stated a gas ban could lead to cost increases, even though all-electric new buildings will save New Yorkers across the state money.

According to a new report from WIN Climate, families living in new electric homes throughout New York could save approximately $1,000 per year compared to those fueled by gas and propane. On top of that, the 100 foot rule – which requires utilities to hook up buildings to gas lines for free – forces everyday New Yorkers to pay the $200 million annual bill for that expansion of outdated energy infrastructure. The NY HEAT Act would relieve us of that cost and instead enable investment in clean alternatives to the gas system, to accelerate the transition to clean heating and cooking. More than 100 advocacy groups have announced their support for the bill.

Low-income households spend three times more of their income on energy bills than those living above the poverty line – the NY HEAT Act would put a price cap of 6 percent of income on electricity bills for low and middle-income families. 55 percent of New York voters are "very concerned" about the cost of their home energy bills and 66 percent support a statewide proposal to end fossil fuels in new construction.

Burning gas in our homes is also highly polluting and causes severe respiratory illness. A new study shows that 19 percent of childhood asthma in New York can be attributed to gas stoves, and low income and public housing residents who often live in small and poorly ventilated dwellings bear a disproportionate burden of the impacts. The All-Electric Buildings Act would ban gas in new construction across the state to fight climate change – ? of New York's greenhouse gas emissions come from buildings – and protect residents' health in their homes.

Background

The All-Electric Building Act will ban fossil fuel use in new buildings across New York State, requiring them to be all-electric with appliances like energy efficient heat pumps for heating, cooling, and hot water, and modern induction cooktops. In 2021, New York City passed its own version of the All-Electric Building Act, banning fossil fueled systems in new buildings across the city starting in 2024.

The NY Home Energy Affordable Transition (HEAT) Act (formerly the Gas Transition and Affordable Energy Act) ensures that New York State will be able to meet the crucial climate justice and greenhouse gas emission reduction mandates set forth in the Climate Leadership and Community Protection Act for buildings without sticking everyday New Yorkers with the bill for misguided expansion of the gas system. It will allow gas utilities to invest in safer, cheaper, neighborhood-scale non-pipe alternatives to new gas infrastructure to protect New Yorkers from spiraling bills and enable zero emissions alternatives to the gas system. It also puts a price cap of 6% of income on electricity bills for low- and middle-income families to ensure energy stays affordable.

Crucially, the NY HEAT Act will do away with the unfair 100 foot rule, which sticks everyday New Yorkers with the bill for gas hookups in new buildings totalling $1 billion in added costs to utility bills for New Yorkers over just five years.

It will also allow utilities to redirect the $150 billion that it will cost to complete planned gas pipe replacements over the next 20 years, and instead invest in neighborhood-scale building electrification.

In January, 200 advocates and 25 NYS legislators and called on Governor Hochul to uphold her State of the State commitments by including the All-Electric Building Act (S562A/A920), the NY Home Energy Affordable Transition (NY HEAT) Act (S2016/A4592) and the Energy Efficiency, Equity, and Jobs Act (S3126/A3996A) in her Executive Budget, and for the Assembly's support. Previously, 220 groups across New York State sent a letter to Governor Hochul, urging her to include the All-Electric Building Act, the NY HEAT Act, and other key energy affordability provisions in her executive budget.

Buildings account for a third of New York's greenhouse gas emissions, and 66 percent of likely New York voters support a statewide proposal to end fossil fuels in new construction. 55 percent are "very concerned" about the cost of their home energy bills. These proposals will help New York meet the Climate Act's requirement of reducing emissions by 40 percent by 2030 while also saving New Yorkers money.

A statewide analysis by Win Climate shows that, under the All-Electric Building Act, families from the warmest to the coldest parts of the state would see savings. Families living in new homes with cold-climate air source heat pumps would save an average of over $900 a year. Those living in new homes with ground source heat pumps would save over $1,100. In rural parts of the state with no natural gas distribution network where homes instead burn propane, new homes equipped with heat pumps could save over $3,670. Statewide, heat pumps in new construction could save households on average $13,975 over 15 years. Tax credits and rebates through programs such as NYS Clean Heat Rebates, the federal Inflation Reduction Act, and the NYS $5,000 geothermal tax credit make heat pumps affordable, and the newly expanded EmPower Plus, combined with other incentives can cover up to 100 percent of heat pump installation costs for low and moderate income families.

Getting off gas and going all electric over the next 30 years is a massive, net-positive jobs creator, creating more than 200,000 new jobs (more than doubling current employment) in the buildings sector. NY State has passed legislation backing utility thermal networks for district heating and cooling with dramatic energy savings.

Last year, the All-Electric Building Act enjoyed support from Governor Hochul, Senate leadership and environmental groups, but a campaign financed by the fossil fuel industry that spread disinformation and lies derailed the bill. The industry set up a front group called New Yorkers for Affordable Energy to preserve the status quo. A report from Little Sis reviewed the organization's tax filings which show that its mission is "to expand natural gas service." The group is meant to have the appearance of a grassroots coalition, but it was founded and is run by fossil fuel executives. From the report: "The coalition is backed by a range of fossil fuel companies and lobbying groups, including utility companies National Fuel and National Grid; pipeline companies Williams, Enbridge, and Millennium Pipeline; and the American Petroleum Institute. Other backers include corporate lobbying groups like the Business Council of New York State, regional chambers of commerce like the Buffalo Niagara Partnership, and fossil fuel industry trade groups like Independent Power Producers of New York and Energy Coalition New York."

Nationwide, the fossil fuel industry is still heavily involved in misinformation efforts against necessary legislation like this. The New York Times reported recently about the Propane Education Research Council sponsoring HGTV star Matt Blashaw. Blashaw calls propane - which contributes to climate change and is the most expensive heating fuel- "an energy source for everyone."

About Better Buildings New York (BBNY)

BBNY is a network of organizations working for the equitable decarbonization of homes and buildings in New York State. We are committed to environmental justice and a just transition to all-electric homes and buildings.