ESEA
On June 30, the U.S. Court of Appeals for the Second Circuit ruled that New York's All-Electric Buildings Act does not violate federal law, allowing the state to move forward with implementation of the law.
The legislation, adopted as part of the 2023 State Budget, prohibits new gas hookups in newly constructed buildings under seven stories, with the requirement expanding to additional buildings constructed after January 1, 2029.
Gas and construction trade groups challenged the law, arguing it conflicted with the federal Energy Policy and Conservation Act (EPCA), which governs the regulation of gas appliances. The appeals court rejected that argument, ruling that the state law is not preempted by federal law.
The All-Electric Buildings Act had been scheduled to take effect on January 1, 2026, but the state agreed last November to delay implementation until after the court issued its decision. The law has received increased scrutiny over concerns related to construction costs, housing affordability, and the ability of New York's electric grid to meet future demand.
