A Balanced Path Forward for New York’s Energy Future

Despite the array of technical and economic challenges with New York’s desired shift towards renewable energy sources, certain elected officials and policymakers continue to advance mandates that limit—or even ban—the use of natural gas. While New York seeks to maintain a healthy economy and attract new, energy intensive businesses, some in the State would prefer to eliminate proven, affordable options in favor of those that are more expensive and less reliable. As we approach the end of the 2025 Legislative Session, it is critical to emphasize the importance of an “all-of-the-above” approach to achieving the state’s clean energy goals under the Climate Leadership and Community Protection Act (CLCPA).

New York’s energy future must prioritize affordability, reliability, and consumer choice. While renewable energy sources like wind and solar should be part of the solution, they cannot yet meet the state’s energy demands alone—especially during periods of extreme weather. For example, during the coldest week of January 2025, wind and solar contributed just 6.5% of the state’s electricity, while natural gas provided a vital 50%. As a significant surge in energy demand is anticipated in the coming decades, according to NYISO, the agency tasked with ensuring New York’s electric grid can meet future needs, is now the time to be eliminating options? An “all-of-the-above” approach would enable the State to make meaningful progress more quickly by using existing technology, and do it more affordably for all residents and businesses.

Natural gas remains the largest source of electricity generation in New York and is used by a majority of residents for heating and appliances. Over the past 25 years, emissions from the generation sector have dropped by 46%, and in National Fuel’s utility service territory, delivery system emissions have declined by 67% since 1990. These improvements demonstrate that existing energy assets can continue to play a role in reducing emissions. And again, in a more affordable and reliable way.

Electricity is currently five times more expensive than natural gas. Since the CLCPA was enacted, electric utilities have increased rates by 50% to cover compliance costs. As demand grows and the electric grid undergoes unprecedented expansion, these costs are expected to rise further. A strategy that removes existing infrastructure without scalable alternatives risks placing unnecessary financial burdens on residents and businesses.

National Fuel supports a legislative package that promotes a practical, inclusive approach to decarbonization. Key proposals include hybrid heating systems, utility-scale weatherization, renewable and low-carbon fuels and carbon capture technology:

Senate Bill 7135, as introduced by Senator Kevin Parker, who chairs the Senate Committee on Energy & Telecommunications. supports hybrid heating, which combines an Air Source Heat Pump (ASHP) with a high-efficiency natural gas furnace. The tangible benefits involve lower upfront and operating costs than full electrification, with improved reliability during extreme weather. Hybrid systems will reduce emissions, especially when paired with weatherization and low-carbon fuels.
Senate Bill 641 / Assembly Bill 3655, proposed by Senator Sean Ryan & Assemblyman Bill Conrad promotes neighborhood-scale weatherization to minimize energy usage while improving building efficiency and comfort, which lowers costs, and at the same time creates skilled jobs in energy auditing and retrofitting.
Senate Bill 7133 establishes a Renewable Natural Gas (RNG) Standard that would set a target and incentivize for the development, production and use of RNG.
Senate Bill 7132 creates a Hydrogen Incentive Program. Hydrogen, a low or no carbon energy source, can be produced from renewable electricity or natural gas with carbon capture and can be blended into the natural gas system or used in fuel cells for heating and power. Both bills aim to lower the carbon intensity of the gas system while preserving infrastructure and jobs.
Senate Bill 7134 supports the deployment of Carbon Capture, which captures CO₂ emissions from industrial and energy sources for storage or reuse—helping reduce net emissions while maintaining energy reliability. This technology enables continued use of fossil fuels while significantly reducing their environmental impact.

For more than six years, National Fuel has advocated for a decarbonization strategy that prioritizes consumer affordability and system reliability using all options. Thisproposed legislative package offers a realistic, cost-effective path to achieving New York’s climate goals—without sacrificing economic stability or energy security. It’s time to lead with a strategy that works for everyone—residents, businesses, workers, and the environment.

 

Written by Donna L. DeCarolis, President of National Fuel Gas Distribution Corporation.

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