NYS Assembly votes to abandon '100-foot rule' that provides free natural gas connections to new homes

ALBANY — The state Assembly on Monday passed a bill to eliminate the decades-old "100-foot rule" that requires utilities to provide natural gas connections to new homes, at a cost of more than $200 million a year for all ratepayers.

The bill, which passed 88 to 56 in the Assembly on Monday and 34 to 25 in the State Senate on Thursday, aims to save ratepayers money and decrease new gas hookups. It comes as the state looks to reduce its greenhouse gas emissions and increase the use of renewable energy under the 2019 climate law, as well as transition to building electrification.

"The bill does not prevent new gas hookups; it simply means that everyone else won’t be forced to pay $200 million a year to hook up new customers and line the pockets of utility shareholders," Assemb. Jo Anne Simon (D-Brooklyn), the bill’s sponsor, said during the floor discussion, adding that it’s "fair and equitable."

"This will simply incentivize hookups for electric and heat pumps which are more reliable, less expensive and better for our health and the environment," she said.

The more than 40-year-old provision of public service law currently requires companies to automatically extend gas lines for new buildings or homes within 100 feet of an existing gas main at no cost to the customer. The bill would instead shift the cost of new gas hookups to new customers if they choose to have a gas hookup installed. The new rule would not apply to projects that have already applied for gas hookups.

The measure was met with opposition from Republicans, particularly those on Long Island, as well as gas companies and fiscally conservative groups who said the bill would increase costs at a time when housing already is at a premium, and would mean fewer union jobs with fewer gas hookup projects. They also questioned the state’s electric grid capacity.

Assemb. Phil Palmesano (R-Corning), the ranking Republican on the Assembly Energy Committee, said the plan is "designed to dismantle the affordable and reliable natural gas infrastructure supply and delivery system."

"It’s designed ultimately to take away consumer choice at how you heat your home, cook your food, power your building and the vehicle you drive," Palmesano said. "It will jeopardize the reliability of the grid leading to dangerous blackouts and it will continue our nation-leading out migration."

The measure now heads to Gov. Kathy Hochul for her consideration and would take effect once signed. Hochul spokesman Avi Small said in an email that the governor would review the legislation.

The vote on the controversial measure took place amid heightened security at the State Capitol in Albany, including an increased state police presence with officers guarding the Assembly Chamber’s entrance, one holding a large rifle, after the targeted shootings of state officials in Minnesota on Saturday.

The move to end the 100-foot-rule comes as the state legislative session comes to its scheduled end.

Environmentalists had hoped for further action including the passage of the New York Home Energy Affordable Transition Act, known as the HEAT Act, which aims to help the state transition away from fossil fuels by removing subsidies and requirements for the expansion of gas infrastructure, including the 100-foot-rule. The legislature instead voted on the 100-foot-rule as a separate measure.

Zilvinas "Z" Silenas, president of the Empire Center for Public Policy, an Albany-based, fiscally conservative think tank, said eliminating the 100-foot-rule "creates intentionally unfavorable conditions for natural gas hookups," adding that a more worthwhile discussion would be on the best way to finance all energy infrastructure. 

Environmental groups applauded the bill’s passage.

"This is taking us one step further to saving money for all ratepayers while also helping us in the transition and downsizing of the gas system," Liz Moran, New York policy advocate for Earthjustice, told Newsday. "We need to be moving at a breakneck pace to pass policies that are going to make New Yorkers' lives easier."