Electrification in New York: Get the Facts
New York is Electrifying the Empire State. What Every Consumer Needs to Know.
The commitment New York has made to reduce greenhouse gas emissions takes great strides toward protecting our environment. But there are questions that many residents have about how these proposals will affect them as renters, homeowners, and often, as small business owners. The cost and feasibility of some of the recommendations made by New York Climate Action Council remain unknown.
Maintain safe, reliable, and resilient energy infrastructure.
Communicate impacts on energy consumers and businesses.
Reduce emissions from all sectors, including transportation and heating.
On February 1, 2023, Governor Kathy Hochul released her Executive Budget proposal which included legislation that would prohibit the installation of fossil fuel equipment and systems in new and existing homes, among other requirements. The Governor’s proposal would:
- Prohibit the installation of fossil fuel equipment and building systems in the construction of new one-family and multi-family residential buildings no more than three stories in height, beginning December 31, 2025. The same prohibition would apply to new multi-family residential buildings more than three stories in height and new commercial buildings starting on December 31, 2028.
- Prohibit the installation of fossil fuel space and water heating equipment and related building systems when retrofitting existing residential and multi-family buildings no more than three stories in height beginning on January 1, 2030, and all multi-family and commercial buildings starting January 1, 2035.
The full bill text is available on the NYS Division of Budget website – Part WW of the Transportation, Economic Development and Environmental Conservation bill
The deadline for approval of a final State Budget is April 1, 2023. Enactment of these proposals in the budget would require approval of the State Legislature.
In July 2019, New York State passed the Climate Leadership and Community Protection Act—a landmark piece of legislation that will require the state to reduce economy-wide greenhouse gas emissions 40% by 2030 and no less than 85% by 2050 from 1990 levels. The Climate Action Council was also created under this law with an important task: creating recommendations for how New York State will achieve these goals.
The Climate Action Council approved its final plan on December 19, 2022. Now many of the recommended actions must be approved by the State Legislature and various regulatory agencies (i.e. – Department of Environmental Conservation, Public Service Commission, etc.)
To learn more about the Climate Action Council and the Climate Leadership and Community Protection Act,
Click on these links below:
New York State is leading the way with some of the most progressive environmental proposals in the country. The real question is: What will they mean in terms of costs to homeowners, renters, co-ops, and businesses?
Some Measures Recommended by the Climate Action Council:
- Beginning January 1, 2025, any new residential construction in New York State having three stories or less, will be required to be “all electric” with limited exceptions. A similar requirement for all buildings, residential and commercial, 4 stories or more will begin January 1, 2028.
- Proposals call for transitioning existing homes and businesses from natural gas and oil heating systems to electric or geothermal heating systems, starting in the year 2030.
- Starting in 2030, homeowners will only be permitted replace a gas furnace, water heater, or oil furnace with an electric one. This change would take effect for larger residential and commercial buildings starting in 2035.
- A proposal that will ban new natural gas hookups or oil service for single family homes and residential buildings beginning in 2025.
- Both residential and commercial buildings will be required to replace their existing natural gas appliances with electric appliances when they stop working, starting in 2035.
- The sale of gas appliances in New York State, such as gas stove tops, ovens, and clothes dryers will be eliminated by the 2035.
- Ban the sale of gasoline vehicles in New York in 2035.
- Require single and multifamily property owners to obtain and disclose prior year energy consumption and energy performance ratings in real estate listings.
Click here to access the full New York Building Electrification Cost Report from June 22, 2022
Taking a closer look at the costs to comply with these proposals is essential as they will vary depending on if changes are made through retrofitting existing properties or in new construction:
- In single family homes, owners may expect to pay anywhere from $17,400 to $31,700 to retrofit a typical, existing gas-powered dwelling in New York. This estimate includes an air source heat pump, water heater, cooktop range, clothes dryer, and electrical modifications.
- When considering new construction of homes, the total costs for electrification in this state are estimated to range from $12,000 to $23,000—this total accounts for an air source heat pump, full range of appliances, labor, and infrastructure necessities.
The owners of multi-family properties and commercial spaces will also be affected by the New York Climate Council’s proposals:
- Small multi-family buildings may be retrofitted with an air or water source heat pump at costs ranging from $13,000 to $30,100 per unit. Retrofit costs for a ground source heat pump range from $29,600 to $42,900 per unit.
- For large multi-family buildings—such as apartment and condominium buildings in Downstate New York, overall costs to retrofit range from $19,400 to $42,900 per unit with an air or water source heat pump, and from $40,800 to $56,000 per unit with a ground source heat pump.
- Costs to retrofit commercial spaces are calculated by the square foot. A typical gas-powered office building would range from $12 to $21 per square foot for buildings with air source heat pumps whereas the overall cost to retrofit using a ground source heat pump is much more expensive—ranging $17 to $24 per square foot.
There are also ongoing financial considerations that should be examined. For example, the upfront costs of upgrading through electrification must be weighed against the savings that property owners may realize over time.
- In single family homes, owners may expect to see average annual energy bills increase by $570. Although research is limited, it is possible that electrification could generate a cost savings for single family homes that use fuels other than gas, such as heating oil or propane.
- While office spaces and multi-family buildings will face significant up-front costs to pursue electrification efforts, there is evidence that they may experience an overall savings in annual energy bills.
Buffalo Common Council raises concerns about New York State’s climate proposal (Feb. 21, 2023) WGRZ
https://www.wgrz.com/article/news/local/buffalo-common-councilmembers-raise-concerns-about-new-york-states-climate-law-politics-wny/71-2b93507b-5e8f-4a88-8845-dbbc85dc05cd
Banning All Fossil Fuel-Burning Equipment in New Construction Opposed 53-39% (Feb. 27, 2023) Siena College Research Institute
New York States’ plan to phase out fossil fuels sparked concern (December 14, 2022) MyTwinTiers.com
https://www.mytwintiers.com/news-cat/new-york-states-plan-to-phase-out-fossil-fuels-sparked-concern/
A plan to phase out use of fossil fuels in NY homes is nearing approval. Here’s what that means (December 5, 2022) The Buffalo News
Another Voice: Climate Action Council Scoping Plan must be realistic and responsible (Oct. 31, 2022) The Buffalo News
New York passes sweeping plan to reduce emissions and ‘lead the way on solving climate change’
https://www.politico.com/news/2022/12/19/new-york-emissions-climate-change-00074600
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