NY’s Budget Misses the Mark on Climate; Commits Ratepayers to Billions in New Gas Infrastructure
ALBANY, NY – In its 2025 fiscal year budget, New York State failed to remove two key Public Service Law barriers to achieving the 2019 Climate Leadership and Community Protection Act’s goals. The budget did not remove the “100-foot rule,” which requires existing gas customers to subsidize building new gas infrastructure to extend the system to connect customers, and it did not amend the utilities’ “obligation to serve” customers with natural gas. Funding for the Clean Water Infrastructure Act remained at $500 million, and regulatory changes were made to expedite electric transmission projects.
The following is reaction from Richard Schrader, the New York legislative and policy director for NRDC (Natural Resources Defense Council):
“The only bright spot in the budget is full funding for clean water, and improving our ability to build more transmission to expedite a zero emission electric grid. Though it was initially suggested that funding be cut for the Clean Water Infrastructure Act, we are pleased to see that did not happen. These funds are essential to protecting our drinking water from toxic PFAS chemicals and getting lead service lines replaced across the state.
“Unfortunately, on climate action, Albany leadership neglected its duty to implement its own landmark climate law, thus blocking real progress to reduce emissions from buildings and avoid billions of investment in gas pipes that will increasingly burden gas customers for decades to come.
“New York missed the opportunity to be the first state in the nation to amend utilities’ obligation to provide gas service to customers, thus enabling an equitable, well-managed transition to clean heat and zero-emission buildings. This would have been a huge step because it would have allowed utilities to invest in clean alternatives rather than locking New Yorkers into replacing 7,000 miles of old pipes and nearly 200,000 old gas service connections, at a total cost to customers of more than $150 billion.”
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org and follow us on Twitter @NRDC.