New York City Takes Significant Step Toward Electrification

New York City is about to be one step closer to total electrification.

The New York City Council has enacted a bill, which current Mayor DeBlasio will sign, that will ban the use of natural gas hookups on a substantial number of new buildings in the coming years. The ban will apply to all new construction seven stories and shorter starting in December 2023 and for buildings taller than seven stories starting in 2027. 

New York City as seen from 425 Grand Concourse — a Phius project in the Bronx

There are exceptions to the new law, including: multifamily buildings in which more than 50 percent of residents are low-income, some manufacturing facilities, laundromats, crematoriums, hospitals, and commercial kitchens. 

Despite the exceptions, this law will apply to a substantial number of new buildings. From a Phius perspective, this new law is in line with the new prescriptive path for the Phius CORE standard and the Phius ZERO standard which prohibits the use of fossil fuels. Even for projects that do not choose the above standards (projects pursuing the performance path under Phius CORE can use fossil fuel combustion appliances), an increasing number are opting to go all-electric. New York City joins other major cities including Seattle, Sacramento and San Jose in enacting policies restricting the use of natural gas in the built environment. 

Finally, the legislation also mandates two studies: one on the use of heat pumps and a second on the legislation’s impact on the electrical grid. The legislation, however, does not apply to existing buildings.

This new law is part of a larger electrification effort within both the City and State. Members of the New York State Assembly have introduced legislation that would prohibit towns and cities across the state from allowing new natural gas hookups. Exceptions to this requirement would require a project to show that an all-electric approach is either physically or technically infeasible (detailed rules determine infeasibility). Moreover, New York City Housing Authority (NYCHA), New York State Energy Research and Development Authority (NYSERDA) and the New York Power Authority (NYPA) are funding a challenge to space heating manufacturers ($263 million) to develop new products designed for existing multifamily buildings with the aim to spur the electrification market in this important sector. This effort moves in parallel with the heat pump study requirement in the New York City law. 

As we all work together to decarbonize the built environment, we look forward to reporting on many more similar policies in the coming months and years.