Key Steps to Secure New York’s Clean Energy Future

Posted by Kristina Persaud on Jan 30, 2025 10:29:21 AM

Securing NYs Energy Future Starts with Action Today

New York is at a crossroads. Despite renewable energy's rapid growth accounting for over 90% of new capacity added in 2024, President Trump has paused energy funding from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act and is stalling onshore and offshore wind, all of which supported the much-needed growth in the energy sector along with countless good American jobs. At the state-level, Governor Hochul’s Executive Budget failed to address the growing threats to our clean energy future. 

With our energy future at risk, state policymakers must step up to ensure a reliable and affordable energy future for all New Yorkers. Here’s how:

1. End Wasteful Infrastructure Spending

For too long, we’ve tolerated wasteful, outdated gas infrastructure spending (the cost of which gets passed on to New York residents and businesses), instead of investing in the clean, electric solutions that will power our future. Gas utilities continue to overspend and overbuild on our dime—burdening families with unjustifiable bills to pay back $3-$6 million per mile of line, or up to an average of $60,000 per customer served by the line. On top of that, utilities have plans to spend another $28 billion of customers' money on gas pipes, even as they move towards obsolescence.  

That’s why we need the New York Home Energy Affordable Transition Act, or the HEAT Act. The HEAT Act would: 

  • Repeal the “100-foot rule,” a statute that forces ratepayers to subsidize continued fossil fuel expansion, forgoing more cost-efficient solutions.
  • Mandate that utilities pursue all cost-effective energy efficiency programs to decrease household energy burdens.
  • Identify tools, such as neighborhood electrification programs, that will help communities access the best and most efficient new heating and cooling technologies in a way that minimizes infrastructure-related costs for all ratepayers.  

By redirecting investments toward efficient, clean energy alternatives, state policymakers can lower bills while accelerating progress towards New York's Climate Leadership & Community Protection Act (CLCPA) targets. 

Beyond NY HEAT, additional changes will be needed to optimize energy infrastructure spending across the somewhat duplicative gas and electric systems. In this new era of load growth, affordability pressures, resilience and reliability challenges, and clean energy transition, New Yorkers cannot afford excess spending by their utilities. That’s why the next step for the state will be to modernize their planning processes with the most cutting-edge regulatory innovations and modeling techniques that can capture more cost-saving opportunities than ever before. Advanced Energy United is committed to developing those policies, and working with legislative leaders and Governor Hochul, to keep moving New York forward at this pivotal moment.

2. Strengthen and Modernize the Electric Grid 

For New York to continue to be a clean energy leader, our grid infrastructure needs an upgrade. We should start by making greater use of technology solutions right in our own backyards. New York’s Public Service Commission (PSC) is exploring ways to modernize our energy system as part of its “Grid of the Future” proceeding which includes making it easier to develop neighborhood virtual power plants (VPPs), which aggregate the electric resources in our communities (i.e., rooftop solar panels, electric vehicles, and smart water heaters) to avoid the expense of a new power plant. The PSC can also create pricing structures that reward smart energy usage to further incentivize New Yorkers. 

With the right policies, New York can lead the nation in clean energy innovation while creating quality jobs and lowering bills. This is a chance for all of us—policymakers, businesses, and New Yorkers alike—to work together for a cleaner, brighter future. With the 2025 legislative session underway, policymakers must renew their commitment to clean energy solutions to keep the lights on in the Empire State.

Topics: State Policy, New York, Building Decarbonization

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