Proposed Fossil Fuel Ban Would Impact Homebuilders and Homeowners

Over the past few years, climate change has become a crisis that is impossible to ignore, forcing industries around the world to adjust and political leaders to come up with new ways to mitigate the effects of a warming planet.

Transitioning away from a reliance on fossil fuels is a big part of that effort, and it’s a trend that’s become increasingly prevalent in the homebuilding industry. While the commitment to sustainability and renewable energy varies from builder to builder, New York State Governor Kathy Hochul recently announced proposals that would eventually require all contractors to follow a new set of rules.

In her State of the State address on January 10, Hochul made two proposals related to the use of fossil fuel-powered appliances such as furnaces, boilers, water heaters and stoves. One proposal would ban fossil fuel hookups in new construction, starting in 2025 for smaller buildings and 2028 for larger construction projects. Another proposal would not seek to ban gas stoves — which have been in the news lately for being a potential health hazard — but would phase in a ban on the sale of fossil fuel-powered heating equipment, with a more generous timeline, starting with smaller buildings in 2030 and larger buildings in 2035.

The latter proposal would require not only new construction to have electric heating but would also require owners of existing homes to replace any broken or worn out heating systems with an electric option after the ban goes into effect.

Whatever form those proposals ultimately take will have an effect on both local building contractors and homeowners in the area, especially those seeking to build a new home. Several local builders spoke last week about the proposals and said that while they support movement toward a more sustainable future when it comes to homebuilding, several important factors need to be taken into consideration.

Frank Dalene is the president and CEO of Telemark, which has been in the homebuilding business on the East End for more than four decades, and he’s also the founder of Hamptons Green Alliance. Dalene also served in the past as chair of the Town of East Hampton Energy Sustainability Advisory Committee. He has become an expert on carbon neutral building and said that the key to moving toward a more sustainable future when it comes to homebuilding and reducing reliance on fossil fuels is to make that transition in the right way.

“We need to be very, very careful with this,” he said of Hochul’s proposals. “I am all for getting rid of all fossil fuels, but it’s a transition. It’s not something where you turn a switch off and then get rid of it.”

He said a focus on moving away from natural gas first is ill advised, explaining that, despite all the “fear mongering” about natural gas stoves and emissions, natural gas is “the least polluting” of all fossils fuels, meaning it’s not the “lowest hanging fruit.”

Dalene and many other leading homebuilders in the area agree that moving away from fossil fuels is a good goal, and they also agree on a necessary factor to make it work — solar power.

“I’m all for a conversion to sustainable energy, as long as there is solar power,” said Michael Davis of Michael Davis Design and Construction in Wainscott. “I’m presuming solar would become the main source of power.”

Davis said the proposal that includes the 2030 deadline seems “perfectly doable” but was skeptical that any move away from reliance on fossil fuels could be done reasonably in a few years. “Within two years, it remains to be seen whether the technology is truly there,” he added. “On a reasonably large house, you have to incorporate solar to bring the energy consumption level down. Hopefully the technology will be there when we need it so it doesn’t translate into more of a cost for the homeowner.”

Dalene expressed similar sentiments.

“I don’t recommend going to all-electric unless you have solar panels on your house that will produce the electricity to cover it,” he said. He pointed out that of the three fuels used to heat homes — electricity, natural gas and fuel oil — electricity is by far the most expensive, with the cost measuring three times as high for electricity as the two other sources. He also pointed out that the electrical grid uses fossil fuel and that simply converting a home to electric does not result in lowering the home’s carbon footprint. In fact, if it is not done in the right way, it could lead to an overall increase in carbon footprint because of the increased pressure put on the electrical grid.

“If you’re going to convert, whether it’s heating appliances or anything else, you have to make sure you’ve installed solar panels, and that the panels are covering [the usage],” Dalene said. “It’s the same with electric vehicles. Electric vehicles are charged on a fossil fuel grid, so it can actually produce more carbon emissions. It’s kind of counterintuitive, but you have to understand that we’re creating electricity using fossil fuels.”

Dalene said the true key to reducing reliance on fossil fuels is to follow a model like what is happening in East Hampton.

“When the offshore wind farm goes online, then the East Hampton grid will be renewable energy,” he said. “From a carbon emissions standpoint, when the wind farm goes online that takes care of carbon emissions on the grid.”

Both Dalene and Davis agreed that, if not carried out correctly, the proposals could end up leading to a drastic increase in cost for homeowners.

Dalene said he recalled, decades ago, living in a townhouse in Holbrook powered by electric heat and said his monthly utility bill was higher than his mortgage.

Davis characterized what PSEG currently charges for electricity as “outrageous,” adding that he hopes the rates will go down once the wind farm goes online.

Without a dual focus on increasing the prevalence of solar panels on homes, Dalene said the governor’s proposals could amount to “putting the cart before the horse.”

“It’s like jumping ahead without laying the groundwork for the proper infrastructure,” he said, adding he’d rather see a “market driven” approach to bringing more solar panels to homes rather than a government mandate.

“To create a law that will increase costs for the consumer is not very smart,” he said. “Nobody has taken into consideration the cost, and it’s huge.”

Whether or not the current proposals can be effective will come down to the two considerations that seem to be key for every major decision in life: time and money.

“I think it’s more a question of timing,” Davis said. “It’s not a bad idea to have a target date, but the reality is that the target date will probably get pushed back.”

He agreed, however, that it is wise to work in the direction of what the proposals are trying to achieve.

“In every respect with regard to home building, we have to think about sustainability,” he said. “It’s well overdue.”