New York Restricts Access to Gas Equipment

Last week, the New York Legislature and Governor Kathy Hochul reached an agreement on the state’s budget for State Fiscal Year 2023-24. The budget amends the state construction building code and prohibits the installation of fossil fuel equipment in most newly constructed buildings beginning in 2026 for structures less than seven stories in height, and 2029 for all remaining applicable building stock. It also lays the framework for a cap-and-invest program (i.e., carbon market) whereby total state greenhouse gas emissions would be capped, and emission allowances would be purchased by covered entities. Taken together, these provisions will greatly impact the future marketplace for thermal fuels, including propane.

Bill Overbaugh, Executive Director of the New York Propane Gas Association (NYPGA), has been engaged with legislators and governor’s office since these concepts were first proposed following passage of the Climate Leadership and Community Protection Act in 2019. “The recent gas ban on new construction and carbon tax were both setbacks in our legislative efforts. But there was also a major win in delaying the implementation date two years. This is a clear indication that the governor and legislature have heard our message and acknowledge that the majority of New Yorkers are not ready for such a drastic, expensive and unpredictable change in such a short period of time,” Overbaugh said. “The bill also includes carve outs for buildings that are inherently difficult to electrify or have a high need to maintain reliability, such as hospitals, industrial buildings and crematoriums. This shows us a potential path forward for our fuel. NYPGA looks forward to continuing our efforts to educate consumers and lawmakers on the benefits of propane and how propane can fit into the landscape of a cleaner future.”

If you’re interested in materials to counter electrification efforts in your state, please visit the Fight Electrification section on NPGA’s member dashboard. For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.