New York State has agreed to delay implementation of its all-electric buildings mandate while a federal appeals court reviews a lawsuit challenging the policy. The All-Electric Buildings Act, passed in 2023, bans gas hookups in new buildings under seven stories starting January 1, 2026, and in taller structures beginning in 2029.
Court filings show that state attorneys consented to pause enforcement until the Second Circuit Court of Appeals issues a ruling. The lawsuit, filed by the National Association of Home Builders, the National Propane Gas Association, and other trade groups, argues that New York’s restrictions conflict with federal law governing energy efficiency standards for appliances.
The state’s decision follows growing concern about the readiness of its electric grid and the impact of the mandate on housing costs. The New York Independent System Operator (NYISO) recently warned of potential reliability issues within the next decade, particularly in New York City, Long Island, and the Hudson Valley, citing increased electricity demand from new technologies and electrification.
These concerns have prompted moderate Democrats in the state Assembly to urge Governor Kathy Hochul to postpone the law. Assemblyman William Conrad of Western New York remarked that while the goal of reducing fossil fuel use is commendable, “I don’t believe we’re there right now.” Cohoes Assemblyman John McDonald III emphasized the need to “take a step back, do a review, see what’s going to work and keep moving forward.”
Governor Hochul’s office has not confirmed whether she will support a formal delay but indicated she is open to discussions. Spokesperson Ken Lovett stated that the governor remains focused on affordability and energy reliability, adding that she welcomes collaboration with lawmakers to address rising housing costs.
