New York is rapidly approaching the effective date for the All-Electric Building Act that requires new buildings constructed in the state to contain all-electric space heating, water heating and cooking appliances.
The new law takes effect Jan. 1, 2026, for all new buildings seven stories or less and commercial and industrial buildings less than 100,000 square feet. New buildings, regardless of height and commercial and industrial buildings greater than 100,000 square feet, have until Jan. 1, 2029, to comply.
Origin
The All-Electric Building Act (AEBA) passed in May of 2023 as part of the fiscal year state budget legislation.[1] The law originated from New York State climate control and greenhouse gas reduction goals detailed in the Climate Leadership and Community Protection Act (CLCPA) of 2019.[2] The CLCPA identified buildings as a major source of greenhouse gas emissions (30%) and calls for reducing statewide greenhouse gas emissions.[3] Despite the many requests to delay implementation of the All-Electric Building Act to avoid overburdening the States electrical grid and aging infrastructure, just last month, the Albany County Supreme Court issued a decision and order in Citizen Action of New York et al v. New York State Department of Environmental Conservation (“DEC”) directing to the DEC to issue regulations to meet the emissions reduction mandates of the state’s CLCPA. The order gives the DEC until Feb. 6, 2026, to finalize those implementing regulations.
While a legal challenge was mounted against the All-Electric Building Act, the U.S. District Court for the Northern District of New York ruled in July 2025 the state has the authority to enact the All-Electric Building Act, affirming that New York can require buildings to use electric-only systems for heating and cooling.
Exemptions
The new law does have exemptions and will not apply to:
- Buildings existing or approved for construction prior to the effective date.
- Installations and continued use and maintenance of existing fossil fuel equipment, including repair, relocation, addition and alteration.
- Generation of emergency or back-up power.
- Manufactured homes[4]
Practical Concerns
The new law will present practical challenges for developers and contractors. Upgrade costs will rise, which may cause delays and will make homes and buildings more expensive. The law also affects more than developers, as there are parts of New York facing energy grid capacity issues, and all-electric building may tax the grids even more, causing power shortages. And, affordable housing, a big problem in the state, may get worse if the new law impedes construction or increases expenses.
Enforcement
Nevertheless, developers and contractors must comply with the electric-only design standards and are prohibited from installing fossil fuel systems, such as gas stoves, gas fireplaces, oil and gas boilers, propane heating systems, in new construction. The State Fire Prevention and Building Code Council will enforce the law – provisions of the AEBA are reflected in the Uniform Building Code and the State Energy Conservation Construction Code.
Harris Beach Murtha’s Real Estate Developers Industry Team and Commercial Real Estate Practice Group are tracking this new law and other related issues to help real estate clients stay aware of pertinent news. If you have questions about this or related issues, please reach out to attorney Michael Murabito at (315) 214-2020 and mmurabito@harrisbeachmurtha.com; or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York state in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains, as well as in Boston, Massachusetts, and Newark, New Jersey.
[1] Chapter 56 of the Laws of 2023, Part RR
[2] Chapter 106 of the Laws of 2019
[3] 40% reduction by 2030, 85% reduction by 2050 (from 1990 levels)
[4] NY Exec.law §601 (7): “Manufactured home” means a structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or, when erected on site, is three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.
