ALBANY, NY — Governor Kathy Hochul on December 19 signed legislation to eliminate the “100-foot-rule” for new natural gas hookups, a rule which costs New Yorkers hundreds of millions of dollars a year.

“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. “I have made affordability a top priority and doing away with this 40-year-old subsidy that has outlived its purpose will help with that.”

Each year, New Yorkers spend hundreds of millions of dollars on connecting new homes to the gas system, according to Hochul's office. Currently, all existing ratepayers of a utility subsidize the first 100 feet of new gas lines. Under legislation S.8417/A.8888 signed by Hochul, new applicants must pay 100 percent of the material and installation costs for gas service, as opposed to other ratepayers.

State Senator Liz Krueger said, “Kathy Hochul just gave New Yorkers a $600 million Christmas present by signing our bill to repeal the 100-foot rule. This is a massive win for New York’s gas customers, and for clean air and a livable climate. In recent years the 100-ft rule has forced all ratepayers to subsidize gas hookups for new customers and a tidy profit for utility shareholders, at a cost of $600 million every year, which compounds many times as it is paid off on gas bills for years down the road. That burden on New Yorkers will now be lifted.”

Assemblymember Jo Anne Simon said, “This is a victory for hard-working New Yorkers, our wallets, and our climate. Utility companies have had a blank check to expand polluting gas infrastructure and pass those costs along to consumers through higher monthly bills. Repealing the outdated 100-foot rule ends this subsidy to the gas industry, saves consumers money, and promotes the transition to greener, more affordable energy. I'm so thankful to Governor Hochul for signing this bill into law and Senator Krueger and the advocates for their partnership in delivering nearly $600 million a year in financial relief to New Yorkers.”

The new law, which takes effect in 12 months and only applies to residential buildings, does not prohibit new gas hookups. Utilities still have a legal “obligation to service,” 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.