Why New York Can’t Afford to Keep Expanding Gas Infrastructure

By Allison Considine & Jessica Azulay | January 5, 2026


We all want to live in a safe, comfortable home that doesn’t break the bank to heat in the winter or cool in the summer. That is why New York has embarked on a project to help residents upgrade their homes with insulation and modern, efficient heating and cooling systems that eliminate polluting fuels and reduce energy costs. To succeed in making this opportunity available to everyone, we have to make sure our money is not being wasted on investments that move us away from these goals. That’s why it was the right decision for the Governor to repeal the 100-foot rule.

The 100-foot rule required utilities to stick their customers with the bill to extend gas infrastructure to new customers — even as New Yorkers are leaving that same gas system because they are choosing heat pumps over fossil fuels.

From a planning and cost perspective, this old approach was fundamentally flawed. Gas infrastructure carries significant long-term costs for maintenance, safety, and eventual decommissioning. Every subsidized extension added today increases the financial burden on customers tomorrow.

Repealing the 100-foot rule helps correct that trajectory. It removes a distortion that artificially favored gas expansion over more cost effective alternatives. Developers can still choose gas, but they now bear the full cost of that choice — just as they would with any other building system decision. That creates a more transparent and policy-aligned market signal and protects consumers from absorbing unnecessary future liabilities.

This change also reflects how the building sector is evolving. High-performance electric buildings are cost-competitive or cheaper to construct in New York, and affordable to own and operate, especially when factoring in avoided fuel costs and long-term infrastructure expenses. Electrification is the most cost-effective path to meeting climate goals while stabilizing energy bills. Reducing incentives for gas expansion supports healthier buildings and more resilient communities.

Critically, repealing the 100-foot rule does not stall housing construction or limit energy choice. It simply ensures that costs are allocated fairly and that utility bills aren’t going up to prolong infrastructure that New York is moving away from.

Smart energy policy means lowering costs today while planning for the future, not doubling down on the past. By ending an outdated subsidy and allowing the true costs of gas infrastructure to be reflected in development decisions, New York is taking a practical step toward a more efficient, affordable, and healthy building sector.

We applaud Governor Hochul and legislative leaders Senators Liz Krueger and Pat Fahy and Assemblymember Jo Anne Simon for championing this reform. The repeal of the 100-foot rule brings us closer to safer, healthier, and more affordable homes that  New Yorkers deserve.

Allison Considine, Interim Director, NY at Building Decarbonization Coalition and Jessica Azulay, Executive Director of Alliance for a Green Economy (AGREE)

 

 

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