Governor Kathy Hochul has signed legislation that ends the “100-foot rule,” a policy requiring all utility ratepayers to subsidize the first 100 feet of new natural gas hookups for residential buildings. This change, which will take effect in 12 months, means applicants for new gas service will now be responsible for covering the full cost of materials and installation, rather than passing those costs on to existing customers.
“It’s simply unfair, especially when so many people are struggling right now, to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own,” Governor Hochul said. “I have made affordability a top priority and doing away with this 40-year-old subsidy that has outlived its purpose will help with that.”
The state previously spent hundreds of millions of dollars each year connecting new homes to the gas system through this subsidy. Under the new law (S.8417/A.8888), utilities still must provide service if requested but will no longer spread these hookup costs among all ratepayers.
State Senator Liz Krueger commented, “Kathy Hochul just gave New Yorkers a $600 million Christmas present by signing our bill to repeal the 100-foot rule. This is a massive win for New York’s gas customers, and for clean air and a livable climate. In recent years the 100-ft rule has forced all ratepayers to subsidize gas hookups for new customers and a tidy profit for utility shareholders, at a cost of $600 million every year, which compounds many times as it is paid off on gas bills for years down the road. That burden on New Yorkers will now be lifted.”
Assemblymember Jo Anne Simon added, “This is a victory for hard-working New Yorkers, our wallets, and our climate. Utility companies have had a blank check to expand polluting gas infrastructure and pass those costs along to consumers through higher monthly bills. Repealing the outdated 100-foot rule ends this subsidy to the gas industry, saves consumers money, and promotes the transition to greener, more affordable energy. I’m so thankful to Governor Hochul for signing this bill into law and Senator Krueger and the advocates for their partnership in delivering nearly $600 million a year in financial relief to New Yorkers.”
New York joins California, Massachusetts, Colorado, Maryland and Oregon in eliminating similar subsidies.
The legislation aligns with ongoing efforts by Governor Hochul’s administration aimed at making energy more affordable while supporting clean energy alternatives across New York State.
During last year’s federal government shutdown—when $400 million in federal heating assistance was withheld—the Governor encouraged eligible residents to enroll in programs like the State Energy Affordability Program (EAP), which provides discounts on utility bills. Within two weeks of her call-to-action during that period affecting 1.5 million people statewide due to lost funding support from Washington D.C., three thousand residents applied or enrolled in EAP.
Since taking office Governor Hochul’s administration has delivered over $5.5 billion in relief measures targeting working families across New York through supplemental payments; tax relief; homeowner rebates; tuition aid; senior heating/cooling support; expanded childcare access; and increased paid leave benefits.
The current state budget includes several initiatives such as middle-class tax cuts benefiting approximately 8.3 million people by reducing rates—the lowest seen in seventy years—an expanded child tax credit beginning in 2026 offering up-to-$1,000 per child under four years old (and up-to-$500 per school-aged child), inflation refund checks reaching over eight million residents with payments up-to-$400 per family ($200 per person), as well as free school meals saving families an estimated $1,600 annually per student.