Leg Must Pass NY HEAT to Save NY Families $75/Month!

ALBANY, NY (05/23/2023) (readMedia)-- Today, elected officials joined 100 advocates at the NY State Capitol to demand that the NYS Legislature pass the NY HEAT Act before the end of session. NY HEAT would cap energy bills at 6% of household income for low- and middle- income families, saving them up to $75 per month. On top of the $75 monthly savings, NY HEAT gets rid of the unfair 100 foot rule, which forces New York families to subsidize new gas hookups to the tune of $200 million every year and worsens the climate crisis. As New Yorkers face increasing utility rate hikes, the groups demanded NYS leadership pass NY HEAT to make energy – a basic necessity – more affordable for all families.

Watch the presser here.

"Continuing to expand the fossil gas system in New York State is not only unsustainable, it is unaffordable, and it is driving rate increases across our state," said Senator Liz Krueger. "Whether it's $200 million per year that ratepayers are forced to pay to subsidize gas expansion, $150 billion ratepayers will have to pay to fix leaky pipes, or the continually skyrocketing price of gas, the status quo is an albatross around New Yorkers' necks. It's time to pass NY HEAT and give New Yorkers a break."

"New York State's heating, hot water, and cooking in our largely fossil fuel-powered building stock accounts for an astounding one-third of our state's greenhouse gas emissions every year, which roughly matches that of the transportation sector," said Assemblymember Patricia Fahy (D-Albany). "Together, these two sectors account for two-thirds of New York's overall emissions, providing a clear blueprint for where New York can begin to significantly reduce emissions. We are not going to meet our ambitious climate mandates laid out in the CLCPA unless New York moves aggressively to transition itself off a reliance on fossil fuels. By developing a statewide gas service transition plan aligned with the state's climate and emission reduction targets, and ending ratepayer subsidization of fossil fuel infrastructure, we are more likely to meet these aggressive-and vital-goals in the years to come."

"Skyrocketing energy costs are crushing low-income communities and communities of color, who are already forced to spend a disproportionate amount of their household income on energy bills. And this crisis is exacerbated by the fact that their utility bills unwillingly subsidize the expansion and maintenance of gas infrastructure that will ultimately be rendered useless as we transition away from fossil fuels," said Sonal Jessel, MPH, WE ACT for Environmental Justice's Policy Director. "The state must put an end to this wasteful spending with the swift passage of the NY HEAT Act, which will finally align our utility laws with our nation-leading climate law, and ensure that low-income ratepayers are not on the hook for the utility's stranded assets."

55 percent of New York voters are "very concerned" about the cost of their home energy bills. Low- and middle- income New Yorkers are the most impacted by volatile gas prices and high energy bills, on average paying 9.3% of their income on energy bills – three times more than other households. NY HEAT capping utility bills at 6% would be a gamechanger for families across the state, saving them on average $75/month.* On top of these savings, the NY HEAT Act gets rid of the unfair 100 foot rule, which forces New Yorkers to pay for subsidized gas hookups, adding up to a whopping $200 million every year. Plus, NY HEAT could redirect up to $150 billion of New Yorkers' money toward neighborhood-scale, clean electrification projects – money that would otherwise be spent on replacing old gas pipes with new infrastructure that will become obsolete well before it's paid off by ratepayers. In fact, a new report from the Building Decarbonization Coalition shows that as New York electrifies, families who are left behind on the gas system could see their gas bills rise by thousands of dollars if we don't pass NY HEAT.

"While more New Yorkers are realizing the environmental and economic benefits of all-electric appliances and heat sources, we cannot allow the burden of rising gas costs to shift to vulnerable communities as New York transitions to renewable energy sources. We also cannot continue to subsidize aging gas infrastructure projects, which likely will be obsolete as soon as they are finished. NY HEAT Act offers affordability now and long-term planning, capping gas utility bills at 6% of income and taking a managed, phased approach to the state's transition from fossil fuels. Inaction is the costly choice. We need to pass the NY HEAT Act this session," said Assembly Member Anna Kelles.

"The NY HEAT Act will save New York families money and help us make an affordable transition away from fossil fuels," said Senator Lea Webb. "My constituents are tired of skyrocketing energy prices that are due in part to our utility companies passing along the cost of expanding our gas system to consumers. NY HEAT will cap utility bills at 6% of income and save the average low-income family $75 each month, a huge savings for families struggling to make ends meet and for our small businesses."

Senator Michelle Hinchey said, "New Yorkers deserve clean energy and lower utility bills, and the NY HEAT Act promises that future by supporting building decarbonization while ensuring that low to moderate-income households no longer have to subsidize the expansion of fossil fuel infrastructure. It's time we pass the NY HEAT Act to deliver an equitable energy transition that gives overburdened ratepayers the utility relief they deserve."

"Everything we must do to meet our climate goals and protect the health and wallets of New Yorkers is connected to our outdated Public Service Law and the outrageous subsidies for the aging gas system that we're all forced to pay. There is no path to a sustainable and affordable future without the New York Heat Act. Let's pass it now," said Assembly Member Emily Gallagher.

Assemblymember Jo Anne Simon said, "New York's clean energy future will be at risk if we do not pass the NY HEAT Act this year. This bill will reduce our carbon footprint, save money for millions of vulnerable New Yorkers by capping their energy bills, and allow our state to transition away from destructive fossil fuels in an equitable way. We need to ensure New York is livable for our children and future generations to come. Thanks to Assemblymember Fahy and the advocates for centering this issue."

"The climate crisis continues to pose an existential threat to New Yorkers across our city and state. Utility costs are skyrocketing, and New Yorkers already struggling to make ends meet are wondering if they will be able to afford to cool their homes in the coming months. Communities of color and low-income communities like the ones I represent in Queens have suffered for too long from our inaction. Not only would the NY HEAT Act redirect State money from costly gas investments toward sustainable, renewable energy, it would also save low and middle income New Yorkers a significant amount of money on utility costs by capping energy bills at 6%. I'm thrilled that the All Electric Buildings Act was included in our final enacted budget, but New York's transition from fossil fuels won't be complete until we pass the NY HEAT Act. I join the call of many of my colleagues and advocates today for the legislature to pass, and the Governor to sign into law, the New York HEAT Act before the end of the legislative session," said Assemblymember Jessica González-Rojas.

"The NY HEAT Act is not just a climate bill; it is a beacon of hope for affordability, justice, and timely action. By capping utility bills at 6% of income for low and moderate income households, it ensures that no one is burdened by exorbitant energy costs. Empowering the Public Service Commission to achieve climate justice targets, this legislation paves the way for equitable and sustainable solutions. By eliminating ratepayer subsidies for gas system expansions and promoting neighborhood-scale alternatives, the NY HEAT Act manages infrastructure costs while prioritizing the well-being of New Yorkers. It is a crucial step towards a cleaner, fairer, and more resilient future for our state," said Senator Nathalia Fernandez.

"Enacting the NY HEAT Act is one of the significant steps we need to take as soon as possible to meet our climate action goals, to rein in the cost of heating and powering our homes, and to usher in a cleaner, more secure future. We have a chance to take decisive action to stop investing in unnecessary and increasingly expensive gas infrastructure that not only hurts our environment but also places an unfair financial burden on New York ratepayers, especially low income households. This bill will bring us one step closer to a future of healthy and sustainable homes. I applaud Senator Krueger, Assemblymember Fahy, and all the advocates who have backed this legislation. It is essential that we pass the NY HEAT Act," said Senator Brian Kavanagh.

"In order to properly carry out the goals of the CLPCA, we need to take action now. Passing the Heat Act is a step in the right direction. This will not only help control costs for consumers but will also take us closer to our climate goals," said Assembly Member Chris Burdick.

"Amidst the weight of unsustainable reliance, we find an opportunity to redefine our path. Expanding the fossil gas system in New York State carries an unbearable cost, both in terms of affordability and environmental impact. From subsidizing gas expansion to grappling with skyrocketing prices and leaky pipes, the status quo burdens us all. It is time to pass NY HEAT, granting New Yorkers respite and liberation from this albatross. By charting a transition plan aligned with our climate commitments, we pave the way for a future where reliance on fossil fuels gives way to a greener, more sustainable tomorrow," said Assembly Member Al Taylor.

"With the war in Ukraine and rising inflation, New Yorkers have seen their utility bills skyrocketing with unpredictable monthly costs. Many New Yorkers are already living paycheck to paycheck, struggling to afford the rising costs of housing and their expenses. That is why I support the NY Heat Act, which will protect our New Yorkers from exorbitant and volatile utility bills by ensuring that low and middle income households never pay more than 6% of their income. Low income families are already subjected to higher utility bills so capping these costs ensures a more equitable distribution of the burden of energy costs in New York," said Assembly Member Harvey Epstein.

"NY HEAT Act is not just a climate solution, but a matter of economic justice for the people of New York! It's time to ensure that all families have access to affordable and clean sourced energy as we move New York into the future," said Assembly Member Taylor Darling.

"The NY HEAT Act is an urgent call to action. It promises a just, affordable, and timely decarbonization of our building sector while safeguarding low to moderate-income households from burdensome energy costs. It's unconscionable that, amidst the climate crisis, we're enabling gas utilities to exploit overburdened ratepayers-NY HEAT puts an end to this by empowering the Public Service Commission and championing a cleaner, sustainable future. Join us in making our climate goals easier, more affordable, and more equitable," said Assembly Member Steven Raga.

"New York must do more if we are to be a climate action leader. Utility companies across the state pass the cost of expansion on to customers, even as demand is dropping, while raising rates on those who may already struggle to pay for their own service. The NY HEAT Act would cap energy costs at 6% of a customer's income, while also helping transition New York onto efficient and sustainable sources of energy for the future. I'm proud to co-sponsor the NY HEAT Act and help make our climate goals a reality," adds Assemblywoman Sarah Clark.

"We need to pass NY HEAT now to address energy affordability and climate change. In the absence of this law, fossil fuel companies are spreading misinformation about renewable energy and continuing to expand their reach throughout the state, making it harder for us to take the action our communities need to thrive now and in the future. And they are using ratepayer dollars to do it, which is completely unacceptable. I want lower costs and cleaner air for my constituents. Let's pass NY HEAT this session - there is not a moment to waste," said Assembly Member Dana Levenberg.

"Passing the HEAT Act this session is an issue of environmental justice," said Assemblymember Tony Simone. "Low-income households spend three times more of their income on energy bills than those living above the poverty line, which is an unacceptable disparity. This legislation will cap energy bills at 6% of household income, providing necessary relief to New York families."

"New Yorkers demand and deserve cleaner energy and lower bills," said Jessica Azulay, Executive Director of Alliance for a Green Economy. "Instead, our representatives are leaving the most vulnerable of us further trapped in a toxic gas system, with skyrocketing bills. Albany must pass the NY HEAT Act and free us from this outdated, overpriced system this session–not make us wait another year."

"The legislature has less than three weeks to pass the NY HEAT Act and avoid an impending rate crisis for gas customers. Utilities are finalizing plans to replace over 7,000 miles of gas pipe, burdening gas customers with $150 billion in costs for unnecessary, polluting fossil gas infrastructure, causing gas bills to skyrocket," said Richard Schrader, New York Legislative and Policy Director for NRDC (Natural Resources Defense Council). "Passing NY HEAT this session will enable those wasteful investments to be spent instead on lower-cost, neighborhood-scale clean energy projects that will save all customers money while advancing the transition of the gas system. All New Yorkers deserve the health and economic benefits of a clean energy future, and the NY HEAT Act will deliver those benefits."

"The NY HEAT Act saves New Yorkers money, protects public health and creates jobs, all while fighting the climate crisis," said Liz Moran, New York Policy Advocate for Earthjustice. "The volatile prices of gas and expansion of deadly gas infrastructure is costing New Yorkers, particularly in communities of color and low-income, in more ways than one, from their pocketbooks to their health. The NY HEAT Act is the necessary path forward for New York to protect consumers and create the green economy necessary to meet our climate law mandates. Earthjustice is proud to join our partners across the state to urge the legislature to prioritize swift passage of this bill."

"The NY HEAT Act is a common-sense energy affordability and CLCPA implementation bill; it will be unfortunate if the legislators go home without tackling the rapidly worsening gas utility rate crisis. No constituents are telling their representatives that they enjoy paying for other people's free gas hookups, the cost of which will add another $200 million dollars to New Yorkers' gas bills before the next opportunity to pass this bill. How will legislators look their constituents in the eye this summer and explain why they chose freebies for fat-cat gas utilities over rate relief for the people they are sworn to serve?" asked New Yorkers for Clean Power's Senior Policy Analyst, Anshul Gupta.

"Working New Yorkers shouldn't have to spend a huge chunk of their paycheck on energy bills-let alone on expensive, toxic methane gas that harms both health and planet," said Stephan Edel, Coalition Coordinator at NY Renews. "The NY HEAT Act allows New York State to build electric and thermal energy networks to replace fracked gas in our homes and buildings, lowering energy bills in the process. It's time we update our outdated energy laws to lay the groundwork for a healthier, cleaner, and more affordable tomorrow."

"The legislature must pass the NYHEAT Act so that ratepayers are no longer forced to subsidize the expansion of an outmoded system," said Michael Hernandez, Rewiring America's New York State Policy Director. "Instead, we should be building what's better for our communities and our planet. Passing the NYHEAT Act means we can start to turn the page on an older, dirtier and more expensive form of energy. The future is electric."

"NY HEAT will correct antiquated laws that have prioritized fossil fuels for decades," said Kim Fraczek, Director of Sane Energy Project. "This crucial climate justice bill will prevent corporate utilities from forcing New Yorkers to foot the bill for their program of peddling fracked gas while restraining the development of renewable solutions. NY HEAT would also make possible an energy transition that would keep low-income residents from further falling into utility debt. The gas industry has been handed freebies for far too long. It's time for New Yorkers to have clean and affordable heating options."

It's time to untie the hands of regulators so they can do their job and enable a strategic, least-cost transition of the gas distribution system, consistent with NY's nation-leading Climate Act," said Betta Broad, Director of Advocacy & Organizing, Association for Energy Affordability. "This is the moment for Albany legislators to pass NY HEAT and support equitably decarbonizing buildings, removing the barriers that enrich gas utilities at the expense of everyday New Yorkers."

"Both the Building Performance Contractors Association of NYS, Inc. (BPCA-NYS) (a not-for-profit trade association with members serving every county and region of NYS) and the NY Institute of Home Performance (a statewide 501c3 charitable organization supporting the education, training and workforce development needs of the industry) support The NY HEAT Act (formerly the Gas Transition and Affordable Energy Act). We believe this is essential for NYS to meet the climate goals of the CLCPA for buildings. As we specialize in working with low to moderate income populations, we understand just how critical it is to ensure financial affordability for NY households and avoid unintended energy poverty and equity problems that would arise without this legislation," said Cara-Leigh Battaglia, she/her, Executive Director/CEO, BPCA-NYS Inc. and Acting ED, New York Institute of Home Performance.

"Archaic laws are propping up the gas and oil industry and undermining the state's efforts to meet the 2030 Climate Act goals," said Anne Rabe, NYPIRG Environmental Policy Director. "The time is long overdue to bring New York law in line with the Climate Act and eliminate the costly burden on ratepayers who are forced to subsidize the utilities with the 100-foot rule. As we enter another summer of rising heat, the Legislature must take action to address the climate crisis by passing the NY HEAT Act."

"As a pediatrician, I know that a just transition to healthy energy is necessary for children's health now and for the health of future generations. There is no place in this transition for families to be subsidizing harmful fracked gas systems. The NY HEAT Act is the missing piece to ensure economic, environmental, and climate justice for our communities. We must accelerate our arrival to the day in which New York families are breathing healthy air at home and no longer spending disproportionate amounts of their income on fossil fuels," said Dr. Larysa Dyrszka, Concerned Health Professionals of New York.

"New York's aging gas system is already unaffordable for millions of gas customers. Unrestrained subsidies and runaway investments in an outdated gas system are no longer tenable for New Yorkers. The legislature must intervene this session to ensure low income New Yorkers will have protection from escalating costs and astronomically high rates from business as usual policies that put gas utility company interests over the public interest. By passing the NY HEAT Act, the State Legislature can protect gas utility consumers from billions of dollars in wasteful spending on stranded assets as New Yorkers transition toward clean energy. Let's deliver long term consumer relief and pass NY HEAT to kick-start a managed, phased, and equitable transition toward neighborhood-scale solutions such as thermal energy networks," said Allison Considine, NY Senior Campaigns and Communications Manager of the Building Decarbonization Coalition.

"New York lawmakers deserve a lot of credit for being the first to legislate fossil fuels out of new construction as a means to combat the climate crisis and achieve a standard of living that is healthier, more cost effective and efficient," said Roger Downs, Conservation Director, Sierra Club Atlantic Chapter. "But all-electric mandates mean very little if we continue to allow existing Public Service Laws in New York to facilitate, subsidize and obligate the expansion of fracked gas infrastructure at the expense of ratepayers. The legislature must understand that the job is not done until they pass the NY HEAT Act, this year, and rectify the crippling inconsistencies between our old energy laws and our new climate goals."

"Right now there is a disproportionate burden of high utility bills on lower-income households. Many currently allocate a staggering 10% of their income to meet their energy needs. The NY HEAT Act seeks to alleviate this financial strain by reducing utility bills by roughly $75 per month for those who struggle the most to make ends meet. This would mean that households and families in Albany would start to see their energy costs go down ASAP -- which is vital as nearly a quarter of the city lives below the poverty line," said Alÿcia Bacon, Organizer with Mothers Out Front NY.

"New Yorkers are subsidizing climate chaos with every new fracked gas hookup. And as volatile fossil fuel prices skyrocket, costs are only going up. It's time to end this vicious cycle of taxpayer-funded fossil fuel lifelines - the HEAT Act is the bill to get us there," said Food & Water Watch Senior NY Organizer Santosh Nandabalan. "Governor Hochul and legislative leaders must pass the HEAT Act with urgency, staving off a rate crisis and cementing New York's climate leadership."

Background

The NY 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 Home Energy Affordable Transition 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.

A new report from the Building Decarbonization Coalition finds that every new mile of a gas pipeline costs customers an average of $6 million - that's $60,000 per customer on that line! But a new memo from Alliance for a Green Economy shows how NY HEAT would redirect money NYS is already spending on costly gas investments toward climate-friendly solutions, while saving money for hardworking New Yorkers.

Last year, NY HEAT (formerly known as the Gas Transition and Affordable Energy 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.

*$75/month savings calculated using 9.3% average energy burden in the NYC area for low-income families and 200% of the federal poverty level income of $27,180 for a one person household.