NY State Climate Act
Carbon-Neutral Economy: Financial Impact

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By Dave Parker

   Late last year the New York Climate Action Council approved its Final Scoping Plan which estab-lishes the blueprint for achieving the goals set forth by the Climate Leadership and Community Protection Act (Climate Act).  The Climate Act aims to achieve a carbon-neutral economy in New York and reduce reliance on fossil fuels.  The Climate Action Council, a 22-member appointed body of State and industry leaders, approved a plan that bans natural gas, propane, and oil heating systems in new home construction beginning as soon as 2025, existing buildings with gas heating will need to be retrofitted by 2030 to use electric heating, sales of gas-fueled appliances will be un-available in New York starting in 2030, and all new car sales in 2035 will be limited to only electric automobiles.  It does not take an industry expert to see that these changes have the potential for a massive financial impact on New York residents and business owners and the countdown to these changes has started.

   Donna DeCarolis, President of National Fuel, a Western New Yorker, and a member of the Cli-mate Action Council voted against the Council’s Scoping Plan.  In a response to Council’s Scoping Plan, DeCarolis issued a letter that calls out the following concerns with the plan – it relies too heavily on a single energy source that is prone to weather-related disruption as highlighted by the recent blizzards, fails to ensure grid reliability for consumers, does not include a full assessment of impacts on consumer energy affordability, and overlooks the use of the natural gas delivery system for decarbonization.  DeCarolis also detailed the drastic differences in Western New York weather which is 45% colder than downstate while 90% of Western New York currently heats with natural gas.  For the full statement from Donna, see the National Fuel Website at https://www.nationalfuel.com/corporate/our-latest-news.

    State Senator for the 57th District George Borrello offers an even harsher review of the Scoping Plan calling it “irresponsible” as the Plan has no cost/benefit analysis to justify the drastic and cost-ly changes as well as is void of any roadmap for how incentives will be implemented to make this transition affordable.  The Senator has published a statement that the cost of converting a house to all electric appliances and heating is estimated in the range of $40,000 to $100,000.  In Senator Borrello’s district and across the state, many people will not be able to afford the cost of this transi-tion without incentives and subsidies that are not yet defined.  Senator Borrello also expressed con-cerns that New York is headed into the same electrical grid challenges that have crippled California and Texas. The Senator is hopeful that a public hearing this week to examine the legislative and budgetary actions needed to implement the Scoping Plan will highlight the significant deficits in the plan and lead to a more reasonable course of action.  The Senator is also calling for residents to make their voices heard to stop the gas ban by signing a petition on his Senate web page at https://www.nysenate.gov/petitions/george-m-borrello/say-no-gas-stove-ban.

   Local business leaders are also keeping a close watch on the details of this plan.  Greg Fitzpat-rick, President at Fitzpatrick and Weller, Inc. in Ellicottville is working closely with industry groups including the Empire State Forest Products Association for impact analysis and advocacy.  For Fitzpatrick and Weller, much of their plant and kiln heating comes from reusing their lumber by-products but a ban on gas would potentially require expensive replacement or retrofitting of lifts that run on diesel fuel.

    At M&M Holland Propane, a leading provider of commercial and residential propane in the WNY southern tier, Ryan Holland is working with the Propane Gas Association and National Gas Association to assess the impact of the proposed changes.  A ban on gas heating would not only wipe out the propane delivery business but also leaves the use of backup generators in question since they are commonly powered by propane or natural gas.  Generator installations and service has been a growing source of business for M&M Holland due to weather-related interruptions to the electric supply.

   Corey Wiktor, Executive Director of the County of Cattaraugus Industrial Development Agency, foresees the gas ban as potentially limiting economic development opportunities in the area due to investors not wanting to take on the higher costs of doing business in New York State.  Cattaraugus and neighboring counties along the Pennsylvania border will find greater competition to recruit and retain businesses when options across the state line will offer lower-cost energy with fewer re-strictions.

    While there is clear recognition that reducing carbon emissions and finding cleaner energy sources is a goal to be supported, the plan that has been proposed by Climate Action Council has the potential to be radically harmful to residents and businesses while being minimally beneficial to the environment.  Make yourself aware of the details of the Climate Action Council’s Scoping Plan as time is running out to voice opposition to the current plan and implement a more sensible energy future.

 

Caption: Reducing carbon emissions and finding cleaner energy sources is a goal to be supported, the plan that has been proposed by Climate Action Council has the potential to be radically harmful to residents and businesses while being minimally beneficial to the environment.


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