Key Benefits for Propane in New York’s State Budget for 2026-2027

Editor’s Note: A version of this news on New York’s state budget approval first appeared in NPGA’s The Bobtail newsletter.

Following a two-month delay, New York enacted its state budget for fiscal year 2026-2027. The delay was largely due to the need for the governor and state leaders to reach consensus on numerous legislative and policy issues.

According to the National Propane Gas Association (NPGA), the state’s $268 billion budget includes two important provisions for the propane industry:

1. The budget scraps the state’s 2030 GHG emissions reduction target and replaces it with a new, interim target for 2040. As a result, the Hochul administration now doesn’t have to issue regulations to implement the state’s Cap-and-Invest program (or a newly designed statewide program) until the end of 2028. Cap-and-Invest would have assessed an additional fee on retail propane sales, increasing costs for consumers and businesses.
2. New York’s electric school bus procurement requirement, which was slated to go into effect next year, will now be delayed until 2032. This gives propane marketers an extra five years to secure transportation contracts and demonstrate the numerous benefits of propane-powered buses. New York is home to one of the largest propane school bus fleets in the country.

In a statement to NPGA, executive director of the New York State Propane Gas Association, Amy Mason, said, “The inclusion of these provisions in the state budget is a significant win for propane consumers, businesses and school districts across New York. These changes provide greater certainty and affordability while recognizing the important role propane plays in delivering reliable, low-emission energy solutions throughout the state.”

In its news release, NPGA stated, “The propane industry has been engaged in a multiyear advocacy effort to combat harmful policy initiatives, including Cap-and-Invest and the electric bus mandate, that have arisen following passage of the Climate Leadership and Community Protection Act (CLCPA) in 2019. For more information, contact NPGA’s Senior Director of State Advocacy & Affairs, Jacob Peterson.”