National Grid Gas Service After the Moratorium: What You Need to Know

Between May and November 2019, National Grid was not accepting new gas connections in Queens, Brooklyn and Long Island, due to an anticipated shortage in supply. The moratorium was imposed after National Grid requested the approval of a new pipeline from Pennsylvania, with an estimated cost of $1 billion, and the project was rejected due to environmental issues.

The gas moratorium has been a major concern for homeowners and businesses, especially those who rely on gas for space heating during winter. However, National Grid has been accepting connections again since November, after reaching an agreement with Governor Andrew Cuomo.

Construction projects with a natural gas load below 1,500 CFH (cubic feet per hour) are now being processed regardless of their connection date. However, projects above 1,500 CFH that get approved must be operational by the first quarter of 2021. In the short term, liquefied natural gas (LNG) and compressed natural gas (CNG) will be delivered by truck to keep up with demand. A neutral third party will be hired for two years to monitor the measures proposed. National Grid may impose another moratorium after 1Q 2021 if the gas supply issue has not been resolved.

Meet the new gas connection requirements of National Grid.

National Grid will pay $36 million in penalties for negative impact of the six-month moratorium. This capital will be used to fund clean energy projects, and to compensate homeowners and businesses who were affected economically by not having a gas service. The gas moratorium affected around 4,000 residential and commercial users, including a municipal fire department in Long Island that required urgent upgrades.

Why Is New York City Consuming More Natural Gas?

There are two main reasons why the NYC building sector is using more natural gas. Demand is constantly growing due to new constructions, and many existing buildings are upgrading their heating systems to use natural gas instead of heating oil. In NYC and Long Island, around 8,000 consumers are switching from oil to gas every year.

• Since natural gas is delivered by pipe, it is more reliable than oil for heating applications. On the other hand, heating oil must be delivered by truck at regular intervals and stored onsite. Heating oil deliveries can be interrupted by adverse weather, while gas lines continue to operate normally.
• Both natural gas and heating oil produce greenhouse gas emissions, but gas is less polluting. According to the US Energy Information Administration, heating oil releases 161.3 pounds of CO2 per million BTU, while natural gas releases 117.0 lb CO2 per million BTU, which is 27% less.

Early in 2020, National Grid will present several options to address the natural gas supply shortage in New York City. These measures will e discussed publicly and implemented by the end of 2021. The new pipeline project will continue to be a central topic. The plan could also include measures like CNG facilities, LNG facilities and gas conservation measures.

The official name of the proposed gas pipeline is the Northeast Supply Enhancement Project (NESE), and it can deliver an additional 400 million cubic feet per day to NYC. This represents a 14% increase with respect to the current capacity. As a reference, one billion cubic feet per day is the amount of gas required to serve 5 million US households. Currently, the project has been rejected by both New York and New Jersey.

The Climate Mobilization Act, better known as the NYC Green New Deal, mandates a significant cut in emissions for the building sector. Converting to less polluting fuels is a viable strategy to reduce heating emissions. Heat pump systems have also emerged as a viable option, since they can deliver space heating at a reasonable cost while using only electricity.

Gas Connection Requirements for Each Building Type

The requirements for a gas connection from National Grid change depending on the type of building, and also the type of project - renovation or new construction. The following section summarizes the required information in each case. These lists are informative: if you plan to file an actual gas connection, the best recommendation is getting in touch with a professional engineering firm. This ensures a quick project approval that meets all requirements.

New construction, 1-2 family building

1. Completed gas load letter with valid phone numbers.
2. Completed gas commitment form, or non-residential application if a business name is used. This must include a certificate of incorporation/filing receipt, deed/lease and IRS EIN/SS4 form.
3. Gas meter listing information
4. Pictures: front view of the structure from the middle of the street, water line at foundation wall, and installed electric meters in case of an underground service.

New construction, 3 or more families, or commercial building

1. Completed gas load letter with valid phone numbers.
2. Completed non-residential application with the number of meters required.
3. Gas meter listing information.
4. Deed/lease copy
5. Certificate of incorporation/filing receipt and IRS EIN/SS4 form.
6. Pictures: front of the structure without obstacles and from the middle of the street, water line at foundation wall, electric meters in case of an underground service.

Renovation, 1-2 family building

1. Completed gas load letter with valid phone numbers.
2. Completed gas commitment form.
3. When a business name is used, deed/lease and IRS EIN/SS4 form along with the certificate of incorporation/filing receipt.
4. Gas meter listing information.

Renovation, 3 or more families, or commercial building

1. Completed gas load letter with valid phone numbers.
2. Completed non-residential application with the number of meters required.
3. Gas meter listing information.
4. Deed/lease copy
5. Certificate of incorporation/filing receipt and IRS EIN/SS4 form.

Final Recommendations

National Grid will be accepting new gas connections until 2021, but meeting the requirements is important to avoid delays. This is very important for projects with a gas load above 1,500 CFH, since they may be subject to another moratorium if they are not completed by 1Q 2021.

Energy efficiency is very important for gas-fired appliances, since the NYC Green New Deal introduced stringent limits for building emissions. The carbon footprint of gas-fired systems is reduced as their efficiency increases. By aiming for the highest possible efficiency, meeting the Climate Mobilization Act becomes simpler.