Asked for a status check Thursday, state Sen. Liz Krueger told Spectrum News 1 this may finally be NY HEAT’s year. The HEAT Act has passed in the state Senate multiple times but has consistently struggled to pass in the Assembly. She said in addition to years of amendments, a recent change in language that could effectively leave Western New York off the hook for now may be just what is needed to do the trick.
“I’m pretty optimistic we might be able to, even though there is so little time left this year, get an amended version through both houses,” the bill’s Senate sponsor said.
The key word is “amended.” After being left out of the state budget, the bill, which seeks to align the state’s utility policy with a transition away from natural gas, end the expansion of natural gas infrastructure through the elimination of the 100 foot rule, and seek to cap utility rates at 6% of household income for many residential payers, is in the process of being linguistically retrofitted to address concerns over transition guidelines.
“We’re amending the bill so the utility can opt out if they wish,” she said. “We believe the vast majority of the utilities will not opt out.”
But there’s one that Krueger says likely will. National Fuel of Western New York has long been a thorn in the side of advocates pushing the legislation, and in both the Senate and Assembly, Western New York members have put up much of the opposition, even if they agree with the fundamentals of the bill.
The potential concession comes after groups like the Alliance for a Green Economy have come out swinging against National Fuel. A study released this month found that the company was an outlier in New York in that they lack an electricity portfolio and generate much of their business from fracking.
Jessica Azulay, executive director of the Alliance, told Spectrum News 1 that the study lays bare why they remain a primary source of opposition.
“They have a financial interest in keeping us on fracked gas, and this is in direct contradiction to where we’re going in New York state,” she said.
Krueger is far from enthused by the way that the company conducts its business, but argued that putting Western New York on the back burner doesn’t have to derail the bill, which already has a structure conducive to regional decision making.
“Yes they are heavily a fracked gas company and we don’t like fracked gas in New York for all kinds of reasons, but it’s also true that there are fewer options in that area as alternatives to gas,” she said. “That’s one of the reasons we’re saying we can work around the rest of the state, get this done, then years later move to that section of the state.”
National Fuel did not immediately respond to a request for comment.
Assemblymember Jo Anne Simon is the new bill sponsor in the lower chamber. Asked what made her want to take on a piece of legislation that practically everyone walking the Capitol halls knows is a headache to navigate through the Assembly:
“I don’t know,” she said wryly. “Maybe a brain disease, but it’s certainly a bill that I’ve supported in the past and it’s certainly something that I think is really important for New York. We have to start moving forward in a productive, constructive way.”
She characterized the amendment as more of a clarification than a significant change, ideally addressing the concerns of Democratic members from Western New York.
“The guardrails that we have to transition — a local area needs to meet certain criteria, it’s not clear they would anyway. I think there’s a very distinct possibly that Western New York will not transition either at all or certainly not in the near future,” she said. “We’ve suggested some language that would make it a little more obvious that if they were not able to reach a plan together, the utility could just not do it.”
Despite the traditional headwinds and resistance, she too feels a passage in the Assembly is within reach.
“I think that we’ll be able to come to some agreement to do a good amount of the HEAT Act,” she said.
But groups like the Business Council of New York State have concerns that run beyond just one company or region. Vice President Ken Pokalsky told Spectrum News 1 that while the group supports efforts to reduce greenhouse gas emissions and possibly even to limit natural gas infrastructure expansion, the bill goes too far in its scope and authority.
“It would force the state to make major decisions about restricting the gas distribution system with unforeseen and we think damaging impacts on the state’s economy,” he said. “We need to be looking at opportunities for renewable natural gas, renewable hydrogen, as well as electrification.”
He also characterized the bill as out of touch with other struggles the state is facing in meeting climate goals, and expressed concern over potential impacts of the bill’s “neighborhood transition projects” on ratepayers.
That portion of the bill would decommission segments of the gas system and transition customers to “affordable, reliable, comfortable, and clean alternatives like thermal energy networks,” though that process would not begin until 2030.
“This bill would put in motion the likelihood that homeowners are going to have to make investments that they certainly weren’t planning for, probably have not saved for, with an unclear amount of state assistance,” he said.
But Krueger pointed out that neighborhoods are not without choice, and the state plans to work with residents to secure affordable options.
“We make explicitly clear in the bill the process that you go through where a specific community must agree to this for themselves and move forward,” she said, arguing that communities would save money through the transition. “You cannot be told we’re shutting your gas off unless A. there are alternatives available and B. your neighborhood and community have agreed to a plan that will work, so we’re not leaving anyone hanging out there worried that an option will be forced on them that is not realistic or one they will want.”