New York State Considering Proposal to Move Away from Natural Gas

Under Section 12 of the New York Transportation Corporations Law, as amended, liquified natural gas providers are required to provide gas lines to any building owner in the State that requests it.¹ Under the application of this law, as long as the building is within 100 feet of an existing main, current ratepayers share the associated installation costs. However, recently proposed legislation may reform this longstanding practice, in a push to reduce the State’s reliance on natural gas.

Governor Kathy Hochul incorporated proposed legislation into her released FY 2025 budget proposal. The bill also has the support of 74 sponsors in the State legislature. Now known as the Affordable Gas Transaction Act, it ends the 100-foot “shared cost rule” and the mandate to provide gas to every owner which requests same, in order to enable the State to achieve its energy and sustainability goals as established under the State’s Climate Leadership and Community Protection Act.

If adopted, new users will pay for the connections. ² An exception is made for reconnections to gas mains following interruptions.³ The intent, in part, is to shift households’ demands to electricity, to be powered by renewable energy sources. Notably, Con Edison supports the removal of the 100-foot rule.

The Governor elected to exclude goals to establish energy costs at 6% of a household’s income for moderate and low-income residents, which some legislators are asking to be incorporated. Opposition also exists to the proposed legislation – including from the AFL-CIO and the International Brotherhood of Electrical Workers, which take the position that the State does not have enough access to affordable renewable energy sources; and that the legislation will result in a loss of jobs.⁴

The proposed legislation aligns with other State initiatives articulated in the budget, including expanding thermal energy networks, which have gained the support of unions and environmental organizations.⁵ If adopted, it will have a notable impact across the State, and in particular in Westchester County, where Con Edison’s natural gas moratorium came to an end as of December 1, 2023. See “As gas moratorium lifts, Westchester homeowners should consider all energy options,” ⁶

As the State continues to promote the transition to renewable energy sources through acts such as the Gas Transaction Act, Cuddy & Feder is fully prepared to assist clients in establishing new renewable systems, both site-specific systems and macro-systems providing electricity for users throughout communities. Such efforts will continue to gain importance in light of the legislative proposal to reduce reliance on natural gas. As discussions regarding what energy sources are most sustainable, affordable, and reliable evolve at the State and local level, Cuddy & Feder will continue to advocate for our utility, renewable, and developer clients.

1. See New York Consolidated Laws, Transportation Corporations Law, Section 12.
2. See “Hochul Is Ready to Start Weaning New York Off Gas,” NYSFOCUS.COM (January 22, 2024), available at: https://nysfocus.com/2024/01/22/ny-heat-act-hochul-100-foot-rule
3. See FY 2025 New York State Executive Budget: Transportation, Economic Development and Environmental Conservation, Article VII Legislation (Part P), available at: https://www.budget.ny.gov/pubs/archive/fy25/ex/artvii/ted-bill.pdf
4. See “NY Heat Act Flares Up,” POLITICO (January 23, 2024), available at: https://www.politico.com/newsletters/new-york-playbook-pm/2024/01/23/ny-heat-act-00137273.
5. See “Hochul Is Ready to Start Weaning New York Off Gas,” NYSFOCUS.COM (January 22, 2024), available at: https://nysfocus.com/2024/01/22/ny-heat-act-hochul-100-foot-rule; FY 2025 New York State Executive Budget: Transportation, Economic Development and Environmental Conservation, Article VII Legislation, available at: https://www.budget.ny.gov/pubs/archive/fy25/ex/artvii/ted-bill.pdf
6. JOURNAL NEWS (December 13, 2023), available at: https://www.lohud.com/story/opinion/2023/12/13/con-ed-gas-moratorium-westchester-homeowners-should-consider-options/71894695007/