New York Governor Ends Regulation for Natural Gas Utility Providers, Citing Affordability

Gov. Kathy Hochul has signed into law the elimination of the ‘100-foot-rule,’ which requires natural gas companies to pay for gas lines up to 100 feet.

A ship carrying LNG gas at Rio Tinto’s Dampier Port in Karratha, Australia, on April 11, 2025. AAP Image/Lukas Coch

NEW YORK—Gov. Kathy Hochul signed legislation that will end an over 40-year-old law known as the “100-foot-rule,” a regulation that mandated natural gas utility companies pay for the first 100 feet of a new gas line to a home.

Hochul said in a press release that the subsidy had outlasted its use. The law, passed in 1981, had the original purpose of encouraging people to move away from dirtier heating sources such as coal and oil.

“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,” Hochul said.

A report by the Public Utility Law Project of New York showed that 10 gas local distribution companies spent $450 million–$500 million in 2021 extending gas service to new customers.

Under the new legislation, new applicants for gas lines will pay all of the costs for materials and installation. Hochul believes this will help with the affordability of natural gas utilities for the average ratepayer.

The price for installing gas lines varies throughout the state, but connecting a new home’s gas to the street will cost in the thousands of dollars for home developers and people looking to use natural gas.

The new law will take effect in 12 months, and does not prohibit the creation of new gas lines. The law only applies to residential projects.

California, Massachusetts, Colorado, Maryland, and Oregon have made similar adjustments to their ratepayer subsidies.

State Sen. Liz Krueger supported Hochul’s decision.

“This is a massive win for New York’s gas customers, and for clean air and a livable climate,“ she said in a statement. ”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.”

Assemblymember Jo Anne Simon also called signing the law “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,” she said in a statement.

A bipartisan letter containing the signatures of 47 members of the state assembly was sent to Hochul on Dec. 11. The letter urged Hochul to veto the law and keep the 100-foot-rule.

“At a time when New York is facing an affordability crisis, a historic shortage of housing, and rising energy costs, this additional burden is unnecessary and counterproductive,” the letter says.

The letter’s authors say getting rid of the 100-foot rule would decrease affordability, worsen the current housing shortage and development, increase stress on the electric grid, and reduce reliability of New Yorkers’ energy.