New York Governor Kathy Hochul has released her fiscal year 2025 budget, which includes provisions aimed at reducing the state’s reliance on natural gas. However, critics argue that these measures could have unintended consequences and harm the state’s residents.
Hochul’s proposed budget includes provisions from the NY HEAT Act, also known as the Affordable Gas Transition Act, which seeks to support a responsible transition away from gas and towards greener alternatives. While the governor’s office claims that the proposal will not force any existing customers to give up their gas service, the bill would empower state regulators to indirectly push for such a transition.
“The Affordable Gas Transition Act would not force any existing customers to get rid of their gas service,” a spokesperson for Hochul stated. “Governor Hochul continues to prioritize the health and safety of New Yorkers by reducing harmful emissions and ensuring all New Yorkers have continued access to affordable and reliable utility service.”
However, if passed by the state legislature, Hochul’s budget would require utilities to provide incentives for customers to adopt green alternatives, potentially pressuring them to discontinue their existing gas service. Additionally, the budget would eliminate the state’s “100-foot” rule, which mandates gas hookups for customers within 100 feet of an existing pipeline. Environmentalists argue that this rule encourages reliance on gas service rather than electricity.
Left-wing climate advocacy organization Earthjustice praised Hochul’s proposal, claiming that it aligns with the state’s climate goals. “Importantly, it will eliminate the unjust 100-foot rule, which forces everyday New Yorkers to pay for the expansion of the gas system to the tune of more than $200 million every year,” the group stated. “It also removes a mandate to provide fossil fuel to residential customers.”
Hochul’s budget reflects her ongoing efforts to reduce New York’s carbon footprint and greenhouse gas emissions, particularly in the building and residential sector. In 2022, over 58% of New York households used natural gas for heating, while another 17% relied on heating oil. Last year, Hochul reached an agreement with the state legislature to mandate zero-emissions construction for smaller buildings by December 2025 and for other buildings three years later, effectively banning gas hookups in new construction.
However, the governor’s actions have faced criticism from state Republicans, power providers, and labor unions, who argue that the state is not adequately prepared for such a rapid transition to green energy. The New York Power Authority and New York Independent System Operator have warned that Hochul’s plans could have negative consequences for the state’s electric grid, while unions have expressed concerns about the lack of a sufficient green energy supply.
“We need to have enough alternative energy that is readily available and affordable across the state before proposals like the NY HEAT Act are considered. As of now, that is not the case,” said Mario Cilento, president of the New York State AFL-CIO. “We believe the State of New York can lead by supporting the development of more clean energy generation alternatives, including transitioning to proven thermal energy networks. This, along with strong labor standards, will help meet emission reduction goals while creating good union jobs.”
It is worth noting that in 2022, natural gas and heating oil accounted for a significant portion of New York households’ heating sources, with electricity generated by natural gas power plants also playing a significant role. The buildings and residential sector is responsible for 32% of the state’s total emissions, more than any other sector.
Governor Hochul’s proposed budget reflects her commitment to tackling climate change and reducing New York’s carbon footprint. However, critics argue that the measures included in the budget could have unintended consequences and may not be adequately supported by the state’s infrastructure and energy supply.
