All Electric Buildings Act Approved in New York State

On July 25, 2025, the New York State Fire Prevention and Building Code Council approved the implementation of the All Electric Buildings Act, which changes the state’s Energy Conservation Construction Code to prohibit fossil fuel systems in certain new buildings. Accordingly, starting January 1, 2026, New York State will require that most newly constructed buildings be fully powered by electricity. Building equipment and systems using fossil fuels such as natural gas, heating oil and propane will be prohibited in many new buildings.

The act was passed as part of the state budget in 2023, and it seeks to implement NYS’ energy mandates required by the Climate Leadership and Community Protection Act of 2019 (CLCPA). The CLCPA seeks to sharply reduce greenhouse gas emissions in phases by 2030 and 2050. By their nature, buildings are responsible for a large portion of greenhouse gas emitted in the state.

Most buildings seven stories or less (including homes), except for commercial or industrial buildings with more than 100,000 square feet of conditioned floor area and other exempted buildings listed below, with a building permit application submitted on or after December 31, 2025, must be built to use only electric heat and appliances. Starting January 1, 2029, these restrictions will apply to all new construction regardless of size and height.

Building owners that attempt to file for building permits before year-end to avoid these requirements should be aware that the statute requires such building permit applications to be “substantially complete” by the deadline.

Certain buildings are exempt from the new requirements. Exempt buildings include: restaurants, hospitals, doctors’ offices, agricultural buildings, and factories. However, these buildings are still required to limit the use of fossil fuel equipment “to the fullest extent feasible” and be “electrification ready.” In addition, existing buildings and their equipment, even those being renovated or repaired, are not affected by the new requirements. In addition, backup and standby power systems like emergency generators may continue to use fossil fuels.

The act includes an exemption for buildings where electric service “cannot be reasonably provided by the grid.” The current proposal from the Public Service Commission, offered in a white paper dated February 27, 2025, would limit this exception to situations where implementing full electric service would take 18 months longer than providing traditional electric and gas service. This proposal is open to public comment and has not yet been finalized.

Various business trade groups and labor unions sued in federal court to block NYS’ laws banning fossil fuel equipment, arguing that these laws conflict with the federal Energy Policy and Conservation Act. In Mulhern Gas Co., Inc. v. Mosley, a decision handed down on July 23, 2025, U.S. District Judge Glenn Suddaby of the Northern District of New York refused to block the bans from taking effect, holding that they were not preempted by federal law. The judge, however, did not dismiss the case and gave plaintiffs 21 days to offer a persuasive reason as to why the case should not be decided in favor of the defendants.

The recent action by the Fire Prevention and Building Code Council to implement the act followed a rulemaking process that included public comment. The Council is a 17-member administrative body comprised of heads of government departments, elected officials and private individuals. They are responsible for maintaining and updating the State Energy and Building Codes. The Council is also working to modify the state Energy Code to increase the minimum efficiency requirements for gas-fired water heaters and hot water boilers, and to require separate electric meters for low rise multifamily dwellings.

The Phillips Lytle Real Estate Industry Team will continue to monitor developments in New York State’s energy policy as it relates to the real estate industry and is happy to answer any questions you may have. Phillips Lytle can assist developers and others seeking exemptions under the code or seeking variances from code requirements.

Additional Assistance

For more information, please contact a member of our Energy and Renewables Industry Team, Environmental Law Practice Team, or the Phillips Lytle attorney with whom you have a relationship.