New York’s All-Electric Buildings Act Survives Challenge And May Go Into Effect This Fall

What is New York State’s All-Electric Buildings Act?

The All-Electric Buildings Act is a groundbreaking state law that requires most new buildings to be built with electric heat and appliances instead of oil, propane, or natural gas heat or appliances.¹

The U.S. Court of Appeals for the Second Circuit recently upheld the law after a group of gas and HVAC companies, trade associations, and unions sued to stop it. The plaintiffs claimed federal energy-efficiency laws override New York’s law. But on June 30^th, the Second Circuit ruled that limiting “the type of energy an appliance consumes” is distinct from and not preempted by federal laws that limit “the amount of energy it consumes.”² The court also affirmed New York City’s parallel Local Law 154.

This may not be the end of the story. The Second Circuit’s decision creates a circuit split; the Ninth Circuit has ruled differently on the same issue, holding that Berkeley, California’s building electrification law, which banned natural gas piping in new buildings and therefore effectively banned natural gas appliances, is preempted by federal energy-efficiency laws for appliances. Especially given the circuit split, the plaintiffs could appeal the Second Circuit’s ruling to the U.S. Supreme Court. For now, the Second Circuit’s ruling holds.

When does the law come into effect?

The law is stayed, which means it is not in effect and is not currently enforceable. Following the appellate court ruling in New York State’s favor, the stay will be lifted on October 28, 2026– unless the plaintiffs appeal to the Supreme Court.³

What exactly will be banned?

Fossil-fuel burning equipment and systems, like gas or propane boilers, water heaters, stoves, ovens, and clothes dryers, will be banned.

What will the law apply to?

Initially, the law will apply to construction of new buildings that are seven stories or less, including single-family and multi-family homes. The law will not apply, however, to large commercial and industrial spaces over 100,000 square feet (like malls or big box stores), even if they are seven stories or less.

Starting January 1, 2029, the law will apply to all new construction, including tall buildings, malls and big box stores.

Which facilities are exempt?

The law will not apply to pre-existing buildings. This means current owners can continue to use, repair, and replace their gas or propane equipment, and they can even renovate or make additions to their buildings without the law applying.

Certain types of buildings and needs are exempt from the law entirely: mobile homes; hospitals and medical facilities; farm buildings; “critical infrastructure,” which is a defined term including such uses as aviation control towers and wastewater treatment facilities; and emergency backup and standby power generators.

Other types of buildings are partially exempt from the law, as long as they meet certain requirements and still comply with the law for their lighting, heating/cooling, and domestic hot water: car washes; commercial kitchens; laboratories; laundromats; crematoriums; fuel cell systems; and manufacturing facilities.

Finally, waivers are available for new builds that receive a written determination by the local power utility that it cannot reasonably provide electric service from the grid.

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