NY State Agrees to Delay All-Electric Buildings Law Effective Date

ALBANY—New York State has agreed to delay the implementation of the “All-Electric Buildings Act,” according to court documents. The state will delay the effective date of the law, according to a court filing in U.S. District Court, multiple media outlets report.

The legislation was included in the 2023 New York State budget and bans new gas hookups in new buildings under seven stories starting Jan. 1, 2026. The mandate would be expanded and apply to all new buildings constructed after Jan. 1, 2029.

While environmental groups praised the law, natural gas and construction and home building trades organizations, including the New York State Builders Association and the AFL-CIO— railed against the all-electric mandate and filed a federal lawsuit to block the legislation from going into effect. The case is currently pending before the U.S. Court of Appeals for the Second Circuit and may ultimately be heard by the U.S. Supreme Court.

The Building and Realty Institute and the Building and Allied Construction Industries in a joint letter to its membership stated that New York State has agreed to a stipulation that “effectively suspends implementation of the code amendments associated with the law while the appellate process is underway.”

“Under the stipulation: implementation of the all-electric code amendments will remain suspended not only through the Appellate Division and Court of Appeals proceedings, but also through any petition for certiorari to the U.S. Supreme Court,” the BRI letter stated. “In the event of a final adverse ruling, the agreement provides for an additional 120-day grace period before the regulations take effect, allowing critical time for builders, local officials, and homebuyers to prepare for compliance. Together, these provisions mean the injunction will likely remain in place for approximately a year or more, even in the event of an ultimate loss in the underlying court case.”

Spectrum News reports that the All-Electric Buildings Act has faced increased scrutiny due to increased construction costs, the current housing crisis and a possible strain on New York State’s electric grid in coming years. The New York Independent System Operator (NYISO) released a report in October that reported the state’s electric grid could have reliability issues in the New York City, Long Island and the Hudson Valley regions within five years, due in part to greater burdens from cryptocurrency, data mining and a shift to electric energy over fossil fuels.

Some Democratic state legislators sent a letter to Gov. Kathy Hochul last month asking the state to delay implementation of the All-Electric Buildings Act.

"The shortcomings of this plan were clear to Republicans from day one, and experts only added to those concerns, warning that the state was moving far too fast without the infrastructure needed to support such a sweeping mandate. As a result, we have an unaffordable, unreliable electric grid," state Assembly Minority Leader Will Barclay stated. "New Yorkers face enough burdens as it is, and removing natural gas, propane and oil as heating options would only drive costs higher. Families can’t afford another mandate that makes everyday life more expensive and less reliable."

Syracuse.com reports that Gov. Kathy Hochul’s office said the delay would reduce uncertainty stemming from the lawsuit but that the governor still supports the move to electrify buildings. “The governor remains committed to the all-electric-buildings law and believes this action will help the state defend it, as well as reduce regulatory uncertainty for developers during this period of litigation,” said Ken Lovett, the governor’s senior communications advisor on energy and environment. “Gov. Hochul remains resolved to providing more affordable, reliable, and sustainable energy for New Yorkers.”