Written on: June 9, 2026
From the National Propane Gas Association Bobtail
Following a two-month delay, last week New York finally 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.
The state’s $268 billion budget includes two important provisions for the propane industry:
1. 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. For context, under Washington State’s Cap-and-Invest program, the current OPIS Cap-at-Rack price for propane is 38 cents per gallon.
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.
Executive Director of the New York State Propane Gas Association, Amy Mason, applauds the inclusion of these provisions in the state budget. “The inclusion of these provisions in the state budget is a significant win for propane consumers, businesses, and school districts across New York,” said Mason. “These changes provide greater certainty and affordability while recognizing the important role propane plays in delivering reliable, low-emission energy solutions throughout the state.”
The propane industry has been engaged in a multi-year 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 at jpeterson@npga.org.
