Court affirms New York’s all-electric buildings mandate

A federal appeals court has sided with New York state over its statewide mandate to build all-electric buildings, saying it does not interfere with federal law.

Known as the All-Electric Buildings Act, the legislation was tucked in the state budget in 2023 and would ban new gas hookups in new buildings under seven stories and then the mandate would apply to all other buildings constructed after Jan. 1, 2029.

Gas and construction trade groups sued to block the law two years ago, arguing it violates the federal government’s rules around how gas appliances are regulated under the 1975 Energy Policy and Conservation Act (EPCA).

The Second Circuit U.S. Court of Appeals ruled on Tuesday that “the challenged laws are not preempted under EPCA.”

“Interpreting preemption provisions in federal statutes requires ascertaining Congress’s intent. EPCA, a statute that at its heart promotes national energy conservation goals, does not preclude these particular state and local efforts to regulate the use of fossil fuels,” the court wrote in its ruling.

The All-Electric Buildings Act had been scheduled to go into effect on Jan. 1 but the state agreed back in November to delay its implementation until after the court ruled on it. The law has faced new scrutiny in the last year over increased construction costs at a time of already limited affordable housing, as well as potential strain on a future electric grid. The New York Independent System Operator (NYISO) released a report in October indicating the state’s electric grid could have reliability issues in New York City, Long Island and the Hudson Valley within five years, due to greater burdens from cryptocurrency, data mining and a shift to electric energy over fossil fuels.

Those concerns prompted calls to delay the All-Electric Buildings Act. In October, moderate Democrats state Assembly signed onto a letter asking Gov. Kathy Hochul to do just that. Republicans in the Legislature have long opposed the measure.

“Today’s decision is a welcome return to a commonsense understanding of state and local control over the homes we live in and the air we breathe,” said Dror Ladin, senior attorney at Earthjustice, an environmental advoacy group. “The gas industry tried to take away the ability for local voters to choose to build cleaner, healthier, and more sustainable homes for our kids to grow up in. But Congress has never supported such a power grab, and the court saw right through the gas industry’s claims.”