Assembly SFY 2023-24 Budget Includes All Electric Building Provisions and $400 Million to Expand Energy Affordability Programs

Speaker Carl Heastie and Energy Committee Chair Didi Barrett today announced the Assembly State Fiscal Year (SFY) 2023-24 Budget includes provisions to phase out the use of fossil fuels in new buildings and invest in programs designed to increase energy affordability.

“The Assembly Majority recognizes that our children need us to change the way we make and use energy for the future of our planet,” said Speaker Heastie. “That is why we are committed to transitioning our state away from fossil fuels while ensuring energy affordability for all New Yorkers.”

“My colleagues and I are committed to reducing New York’s carbon emissions through thoughtful policies that allow the state to move from fossil fuels to renewable energy sources,” said Assemblymember Barrett. “We are equally committed to a just transition that protects our disadvantaged rural and urban communities, creates green jobs and ensures energy affordability for all New Yorkers.”

All Electric Building Provisions

The Assembly’s proposed budget would help transition the state away from fossil fuels by implementing all-electric building provisions for new construction, which would prohibit the installation of building systems or equipment used for the combustion of fossil fuels in new smaller building construction beginning in 2025 and new larger building construction in 2028. The proposal includes exemptions for emergency back-up power, hospitals and medical facilities as well as critical infrastructure.

The proposal would also require state owned buildings to fully decarbonize by 2040 with a focus on buildings with the highest emissions. The program would include labor protections and job retraining to help displaced fossil fuel workers and disadvantaged community members.

Energy Affordability

The Assembly’s budget also invests $200 million for two energy programs for a total of $400 million aimed at increasing affordability. Under the proposal, $200 million would be invested in the the Energy Affordability Program (EAP) to fund the expansion of the EAP to include enrollment of median income ratepayers in addition to low-income ratepayers. The EAP requires utility providers to offer benefits to ensure that ratepayers are not paying more than six percent of their income on energy costs.

The spending plan also includes $200 million for the Empower Plus program, which provides free energy efficiency home upgrades to low-income consumers. The investment would help ensure that low-income residents remain below the six percent energy affordability cap after the upgrades.

The Assembly also remains committed to developing a plan to require any renewable energy project built, financed or operated by the New York Power Authority (NYPA) to:

• fill energy generation gaps identified by NYPA’s assessment of the state’s progress towards achieving the energy goals of the Climate Leadership and Community Protection Act (CLCPA) annually;
• include strong labor standards and protections, Buy American requirements, and workforce development programs to train, retrain and transition the fossil-fuel workforce; and
• provide low- and moderate-income consumers, and consumers living in disadvantaged communities with financial protections during the transition to renewable energy, including providing utility bill credits.