New York Governor Kathy Hochul Friday signed legislation to eliminate the “100-foot-rule” for new natural gas hookups. The rule, for decades, has allowed developers to connect a residential home or building to an existing natural gas line at no cost, as long as the building was within 100 feet of the main line.
Under the legislation signed by Hochul, new applicants must pay 100 percent of the material and installation costs for gas service, as opposed to other ratepayers.
“It’s simply unfair, especially when so many people are struggling right now, to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own,” Hochul said.
Republican New York State Senator George Borrello was quick to react, saying, “Governor Hochul’s decision to sign the repeal of the so-called ‘100-foot rule’ is yet another irresponsible, politically motivated move driven by a desire to appease the far left, even as she knows the serious risks these policies pose to New York’s economy, housing costs, and energy reliability. This decision ignores the very real financial pressures facing New York families."
National Fuel Gad Distribution Corporation is expressing serious concerns with the decision by Hochul, with President Michael Colpoys saying, "Repealing this rule would force families and small businesses to pay thousands of dollars upfront and make affordable housing projects harder to build thus slowing the creation of homes for low- and moderate-income families." Colpoys adds, "It would also discourage conversions from higher-emission fuels like propane and heating oil, blocking a cost-effective path to lower carbon emissions for more than 750,000 homes across the state."
Colpoys also expresses fears of the impact of the decision during weather extremes, saying, "Natural gas is critical for heating during extreme cold and supporting the electric grid during peak demand. Restricting access threatens reliability and affordability at a time when the state’s electric system is already under strain. Taking away this rule limits access to natural gas, a dependable and cost-effective option recognized in the State Energy Plan as essential for reliability and affordability."
The new law, which takes effect in 12 months, applies to residential buildings, and does not prohibit new gas hookups. Utilities still have a legal “obligation to service,” the governor's office says, but the law shifts the costs of natural gas hookups to the applicants rather than pass them on to the rest of the utility’s ratepayers.
New York joins five other states, including California, Massachusetts, Colorado, Maryland and Oregon, that have removed similar ratepayer subsidies.