Gov. Kathy Hochul (D-NY) and state lawmakers reached an agreement to phase out natural gas hookups in new buildings beginning in 2025, a first-of-its-kind state law designed to reduce reliance on fossil fuels and transition to cleaner sources of energy.

Hochul said Thursday she reached a handshake deal with lawmakers on the agreement, which was included in New York’s fiscal 2024 budget.

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Though the budget stops short of an explicit ban on natural gas appliances, it will ban natural gas hookups in most new residential and commercial buildings under seven stories beginning in 2026.

By 2029, that will extend to larger industrial and commercial properties as well.

"I promised New Yorkers we'd make our state more affordable, more livable, and safer, and this budget delivers on that promise," New York's governor said in a statement Thursday.

Hochul first proposed the ban on natural gas hookups in new construction in January during her “State of the State” address.

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She said then that buildings were the largest single source of emissions in the state, accounting for one-third of New York’s greenhouse gas output.

The law is consistent with the Biden administration's broader goal to slash greenhouse gas emissions by 50-52% nationally by 2030 compared to 2005 levels.