NY First-in-the-Nation to End Gas in New Construction, But the Work is Not Complete Without NY HEAT Act

ALBANY, NY (05/02/2023) (readMedia)-- Today, Governor Hochul and the State Legislature made history by including the All-Electric Building Act in the budget, which will require new buildings in New York to use efficient electric heating and appliances starting in 2026. But they abandoned the most critical measure to enable transformation of existing buildings – which will comprise more than 85% of all buildings in 2050 – by leaving out the NY Home Energy Affordable Transition (HEAT) Act. This bill would lay the legal and regulatory foundation for an affordable transition off fossil/methane gas. To reach New York's climate goals, and dramatically reduce air pollution, the state needs to electrify most buildings by 2050. NY HEAT could also save low and moderate income New Yorkers nearly $1,000 every year in their utility bills through a 6% income cap.

"Governor Hochul and the NYS Legislature took an important, but limited step forward toward meeting the greenhouse gas emissions reductions from buildings required by our nation-leading climate law. However, this important mandate won't go into effect for two more years. Meanwhile, the budget is not complete without NY HEAT – a crucial bill to free us from costly fracked gas subsidies and fossil gas expansion. The NY HEAT Act would save billions of dollars for consumers while moving neighborhoods off the gas system and onto clean, renewable alternatives. The Governor and Legislature must stop slowing climate progress and pass NY HEAT this session," said Rich Schrader, New York Policy Director of NRDC (Natural Resources Defense Council), a member group of BBNY.

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 enable the PSC to pair back the utility obligation to provide gas services in order to enable utilities to redirect the up to $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 that enables a strategic downsizing of the gas system consistent with the recommendations in the gas system transition chapter of the CAC Scoping Plan.

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.

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.

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.