Conversion Challenges: Why Not Just Switch to Gas or Electric?
Converting a building’s heating system is a major undertaking, and several factors can stand in the way:
No Gas Infrastructure
Some buildings are not on a gas line, and bringing in a new gas service can be extremely expensive or even impossible. In parts of the city, especially outer boroughs or smaller streets, the gas utility may not have sufficient pipeline capacity. There was even a recent moratorium on new gas connections in parts of the metro area due to supply constraints. If ConEd says you can’t get a new gas hookup (or you can, but at a cost of millions to upgrade the main), the building is effectively locked into oil for now. Additionally, with NYC’s new building gas ban (Local Law 154) and state electrification efforts, utilities are becoming cautious about expanding gas infrastructure. A building might apply for gas conversion and get rejected or deferred by the utility.
Physical Constraints in the Building
Converting to gas or to electric heat isn’t plug-and-play in a century-old NYC building. For gas: you need chimney liners or new flues for gas exhaust, you need space for new gas piping internally, and you need to install new burners or boilers compatible with gas. Some old buildings (landmarked brownstones, for example) have narrow chimneys that are hard to line or have no room for a double set of equipment (some owners prefer dual-fuel so they keep oil as backup). For electric: to replace an oil boiler with electric heat (say via heat pumps), you need significant electrical capacity. Many buildings have a limited electrical service that would need a major (expensive) upgrade to handle electric heating. Installing large heat pumps also requires space for air handlers and perhaps outdoor units – not feasible in all high-rises or dense footprints. In short, the building’s design or infrastructure can block conversion. A small historic co-op might simply not have a viable way to route flues or place equipment for a new system.
Financial Barriers
Conversions are costly. Switching an apartment building from oil to gas can cost hundreds of thousands of dollars (new burners/boilers, trenching for gas line, chimney work, etc.). Going oil to electric can be even more (new HVAC systems throughout, electrical overhaul, plus potentially higher operating costs). Some co-op and condo boards just cannot marshal the funds or get enough votes to approve such a huge capital project, especially if the current oil system still works. Even if they know long-term it might save money or emissions, the upfront cost is a show-stopper. There are financing and incentives out there, but not every building can secure them. Thus, owners stick with oil because the alternative is financially unfeasible at the moment.
Disruption and Timeline
Even when money is available, conversions take time and cause disruption. A gas conversion might mean weeks of work, coordination with utilities, and downtime risk. An electric retrofit could mean opening walls in every apartment to install new equipment – a nightmare in an occupied building. For large rentals, owners worry about the disruption to tenants and potential lost rent or having to put families in hotels if heat is down. Many simply decide to wait until the existing system’s end of life or a major mandated deadline, rather than proactively undergo 6–12 months of hassle now.
No Legal Requirement (Yet)
As of now, there is no NYC law that outright bans existing oil heating systems. Building owners are keenly aware of this. While emissions laws (LL97) push them to cut carbon, they technically don’t force an oil-to-gas switch; owners could pursue other means to comply (more on that below). The lack of a direct mandate to eliminate oil boilers means some will choose to remain on oil and address compliance in other ways, rather than convert fuel. They take a “wait and see” approach, figuring they’ll cross the conversion bridge if/when laws eventually require it.
In summary, logistics and cost are the big blockers. For instance, consider a landmarked Manhattan co-op that uses No. 2 oil: no gas line on the block, a chimney that can’t be lined easily, and a cash-strapped board – switching to gas or electric is practically off the table. Or a Brooklyn rental building where the owner finds out ConEd would require a gas main extension costing $1 million – not happening. These real-world constraints keep many buildings using heating oil even as others convert.
What Owners Do Instead to Clean Up Their Act
Just because a building stays with oil doesn’t mean owners are ignoring clean-energy goals or compliance. Here’s how oil-reliant buildings are adapting:
Upgrading to Ultra-Low Sulfur and Bioheat Fuel
NYC already requires ultra-low sulfur heating oil, which greatly reduces pollution. And as of now, all heating oil is at least B10 Bioheat (10% biodiesel), moving to B20 by 2030. Owners are embracing these cleaner fuels. Many oil suppliers (like Energo) provide Bioheat blends higher than the minimum – some buildings request B20 or even B50 if their equipment allows. Using Bioheat fuel is the easiest way for an oil-using building to instantly cut emissions and soot without changing any hardware. It’s essentially drop-in.
A building that “can’t convert off oil” can at least ensure the oil it burns is as clean as possible. This helps with Local Law 97 carbon caps and Local Law 32 compliance. The city and state also offer tax incentives for biodiesel use, which owners are happy to take advantage of. In short, using cleaner oil is step one.
Burner and Boiler Upgrades
If they can’t change the fuel, owners often focus on modernizing the equipment. Replacing an old oil burner with a new high-efficiency burner can improve combustion, extracting more heat from each gallon and emitting less CO₂ and pollutants. Efficient boilers or furnaces can have annual efficiencies of 85–90%, compared to older ones at 70%. That means 20% less fuel use for the same heat – directly reducing emissions and cost.
Many buildings are investing in dual-fuel burners as well, which can burn oil now but switch to gas in the future if gas becomes available or attractive. It’s a way of future-proofing.
Enhanced Maintenance and Tuning
Property managers are ensuring their oil systems are finely tuned and maintained. Annual tune-ups, boiler cleanings, and frequent filter changes keep the system running optimally, which minimizes soot and ensures low stack emissions. A well-tuned oil burner produces very little carbon monoxide and burns with a clean flame. This not only keeps the system safe but also means fuel is being used efficiently.
Reducing Heating Load
Another strategy is to make the building need less heat. Oil usage can be cut by insulating pipes, air-sealing windows, installing TRVs (thermostatic radiator valves) so apartments don’t overheat, etc. During Local Law 87 energy audits, many buildings discover they can do relatively low-cost fixes that yield 5–15% fuel savings. Owners who can’t ditch oil pursue these aggressively.
Compliance Credits and Offsets
For Local Law 97, a building that stays on oil might consider purchasing renewable energy credits (RECs) or carbon offsets to cover some of its emissions. While this doesn’t reduce onsite fossil fuel use, it’s a compliance tool to avoid fines.
Planning for the Future
Some buildings that can’t convert now are laying groundwork to convert later. For instance, they might oversize their electrical room in a renovation, anticipating future heat pump installation when costs come down. Others watch emerging technologies like renewable liquid fuels that could replace heating oil without conversion.
NYC policymakers recognize not everyone can convert immediately. That’s partly why the approach has been to improve oil (via Bioheat mandates) rather than ban it outright. For buildings that remain on oil, the city’s stance is “use the cleanest oil possible and reduce usage.”
A Real-World Example
Consider a mid-size co-op in Queens built in 1950, on oil heat:
- No gas line in the street (and no immediate plan by utility to add one).
- The building considered heat pumps, but the cost to upgrade electrical service and install units in 60 apartments was astronomical.
- Instead, they upgraded their oil boiler to a new high-efficiency one, added an outdoor reset control and smart thermostatic valves, started buying B20 Bioheat fuel, and insulated pipes and roof areas.
The result: they cut their oil consumption by ~18% and their CO₂ emissions likewise. They’re compliant with LL97’s 2024–2029 period and planning ahead for 2030.
Looking Ahead
Will these buildings ever convert off oil? Possibly, yes. For now, NYC’s strategy is to reduce oil’s impact: Bioheat blending is increasing and emissions limits pressure every building to burn less.
Bottom line: There are valid reasons some buildings can’t drop oil heat yet – but that doesn’t mean they’re stuck in the past. Through cleaner fuel, smarter tech, and efficiency moves, they’re keeping their oil heat viable and compliant.
Why Some NYC Buildings Can’t Convert Off Oil—and What Owners Do Instead
New York City officials often encourage buildings to switch from oil heat to cleaner alternatives like natural gas or electric heat pumps. But on the ground, many buildings remain on heating oil – and not always by choice.
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