June 7, 2022

Good afternoon. I am Angela Licata, Deputy Commissioner for Sustainability at the New York City Department of Environmental Protection (DEP). I am joined today by Julia Casagrande, Policy Advisor at the Mayor’s Office of Climate and Environmental Justice (MOCEJ).

Thank you for the opportunity to speak today about transitioning to less polluting fuel oil options around the city. This has been a priority for DEP and City Council for many years.

Buildings were required to begin transitioning from fuel oil No. 6 in 2011, as a result of Local Law 43 of 2010. This change has had a significant impact on improving air quality, especially in northern Manhattan and portions of the Bronx that had especially high concentrations of boiler conversions. Traditionally vulnerable, high poverty areas experienced the greatest proportion of health benefits from the fuel oil conversions. The passage of Local Law 38 of 2015 built on this progress by requiring a full phase-out of fuel oil No. 4 by 2030. Since 2015, approximately 1,000 boiler applications have converted from systems that use No. 4 to systems that use No. 2 or natural gas.

Currently, approximately 3,366 buildings across the city now burn fuel oil No. 4, with 1,517 using No.4 as a backup fuel to natural gas as part of what’s known as a “dual fuel system”. These buildings use No. 4 when natural gas is in high demand during very cold weather conditions. The other 1,849 buildings use No. 4 fuel exclusively. DEP regularly communicates with building owners to ensure that they are aware of regulatory expectations and options to meet these regulations.

Phasing out fuel oil No. 4 will have important air quality and public health improvements by reducing emissions of particulate matter, oxides of nitrogen, sulfur dioxide, and carbon dioxide. The Department of Health and Mental Hygiene expects these improvements may result in fewer premature deaths, respiratory and cardiac hospitalizations, and asthma emergency room visits. As with the transition from fuel oil No. 6, the transition from fuel oil No. 4 will have a significant benefit in environmental justice neighborhoods. Approximately 72% of the buildings that currently use fuel oil No. 4 are in environmental justice or potential environmental justice communities, especially in northern Manhattan and the Bronx.

Converting from fuel oil No. 4 to another source will require investment from building owners. The conversion cost vary significantly, depending on the building’s current system and the new system that is installed. We appreciate that some building owners may need help understanding their options for compliance, so MOCEJ, through the NYC Accelerator, connects building owners with the technical assistance and utility incentives that they will need to transition away from fuel oil No. 4. The NYC Accelerator provides personalized outreach and assistance from experts who offer advice on energy-efficient and clean energy technology, local laws, and incentives and financing options to fund building upgrades. First launched in 2012 as Clean Heat, this program assisted the phase out of fuel oil No. 6 for many buildings. In total, about 5,300 buildings converted from fuel oil No. 6 to cleaner fuel, eliminating 1,200 tons of PM2.5 emissions and preventing an estimated 210 premature deaths annually.

We have been working toward cleaner heating oil in the City for over ten years. There are a number of upcoming biodiesel requirements, both from the City and the State. In anticipation of these requirements, building owners should already be taking steps to clean up their fuel equipment to ensure compliance. Currently, the Air Code requires that all buildings convert from No. 4 oil to No. 2 oil or alternative sources by 2030. Int. 470 would accelerate the transition timeline. We share Council’s goal to phase out No. 4 oil as soon as is feasible, so we want to work with Council to ensure that the bill details consider cost and technological considerations to best serve all impacted communities.

We thank the Council for their attention to this topic and look forward to working together on this bill. My colleague and I are happy to answer any questions that you have.