New York State’s 2024 budget included the first-in-nation statewide ban on natural gas and other fossil fuels in new construction to be phased in starting in 2025.

The final budget directs New York State’s Fire Prevention and Building Code Council to prohibit the installation of fossil fuel equipment and building systems, including gas stoves, in any new building seven stories or less by December 31, 2025. Commercial and industrial buildings greater than 100,000 square feet would be exempt. The prohibition on installing fossil fuel equipment and building systems would apply to all new buildings on and after December 31, 2028.

Exemptions from the prohibition include systems used:

• For emergency backup power and standby power.
• In a manufactured home.
• In a building or part of a building that is used as a manufacturing facility, commercial food establishment, car wash, laundromat, laboratory, hospital or other medical facility and critical infrastructure.

Exemptions from the electrification requirement are also permitted where the grid cannot reasonably provide electric service, as determined by the Public Service Commission.
The budget also creates a Climate Action Fund comprising revenues from a cap on greenhouse gas emissions. DEC will release draft plans by 2024 for a limit on total carbon emissions allowed statewide and the potential number of carbon credits companies could bid for instead of cutting their emissions. This fund will consist of 3 accounts:

• Consumer climate action account, receiving at least 30% of revenues to provide benefits and rebates to help reduce the potential increased costs of goods and services for consumers).
• Industrial small business climate action account, which would receive up to 3% of revenues to provide benefits to reduce costs to small businesses.
• Climate investment account, which would receive at least 67% of revenues to fund projects designed to help transition to a less carbon-intensive economy.

The budget also includes the Build Public Renewables Act, which requires all state-owned properties that receive power from the New York Power Authority (NYPA) to run on renewable energy by 2030. It will also require municipally owned properties – including many hospitals and schools, as well as public housing and public transit – to switch to renewable energy by 2035.