Enacts the NY Home Energy Affordable Transition Act; and repeals certain provisions of the public service law relating to gas service and sale

• Democratic92

◆ The sponsor's argument

Why Liz Krueger says this is needed

New Yorkers are facing rising heating bills, spurred by utility invest- ments in increasingly expensive gas pipelines, the costs of which are paid by utility customers as delivery costs on their gas bills. Delivery costs can be two or three times greater than the cost of gas itself. The increasing heating bills contribute to an unaffordable cost of living for too many New Yorkers, leading to high amounts of consumer debt to utilities, increasing numbers of utility service shutoffs, and hardship as families struggle to also afford housing, food, medicine and health- care. Heating our buildings through burning fossil fuels is the largest source of greenhouse gas emissions in New York State. The climate crisis threatens the lives and financial security of New Yorkers, as storms, wildfires, and extreme heat threaten the health, wellbeing, and property of residents, leading to high healthcare costs and other financial damages. To address these harms, New York urgently needs to align its regulation and oversight of gas utilities with the climate and equity provisions established by the Climate Leadership and Community Protection Act (CLCPA). The CLCPA sets ambitious targets to achieve significant green- house gas emission reductions across New York's economy, while prior- itizing reductions in co-pollutant emissions in disadvantaged communi- ties and requiring significant state investments to bring the affordability and health benefits of energy efficiency and clean energy to these communities. Achieving New York's climate and equity objectives necessitates updating the regulation of gas utilities. Current policies.create misalignment between gas system investments and the CLCPA's 2030 and 2050 mandates, increasing the risk of a costly and disorderly transition. Strategic planning and investment are needed to decarbonize buildings, right-size the gas system, and ensure coordinated enhancements to the electric system, enabling equitable and affordable access to clean energy solutions for all New Yorkers. Outdated public service laws are misa- ligned with the state's energy affordability goals and CLCPA mandates. The "utility obligation to serve gas" compels utilities to expand gas infrastructure, making it challenging to redirect investments toward insulating and upgrading homes and installing clean energy alternatives like electrification and thermal energy networks that align with climate goals while mitigating costs for ratepayers. Mandated system extension allowances require existing ratepayers to subsidize gas hookups for new customers, costing ratepayers hundreds of millions of dollars annually. Utilities are projected to spend $150 billion to replace leak-prone gas pipelines. Through the changes implemented in this Act, many of these investments could be avoided by redirecting funds to neighborhood-scale decarbonization projects. Neighborhood-scale projects offer the most cost-effective pathway to transition gas customers to alternative heat- ing and cooling solutions. These projects reduce costs, minimize strand- ed investments in the gas system, and enable coordinated efforts among utilities, customers, and other stakeholders. The NY HEAT Act seeks to: a. Reduce unjust and disproportionate energy cost burdens by avoiding unnecessary, non-strategic, and expensive gas infrastructure invest- ments, and improving affordability protections. b. Ensure utility regulations do not work at cross-purposes with the CLCPA. c. Provide the Public Service Commission with clear authority and direc- tion to align utility planning with CLCPA goals, proactively addressing regulatory barriers and recommending necessary legislative changes. d. Minimize the need for new gas infrastructure investments by redirect- ing ratepayer funds to alternatives including electrification, thermal energy networks, targeted energy efficiency, demand response, and market transformation measures. e. Facilitate a planned, neighborhood-scale transition away from foss

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.