New+York%E2%80%99s+All-Electric+Buildings+Act+takes+effect+in+2026%3A+Are+we+ready+for+the+switch%3F - Rochester Business Journal

New York’s All-Electric Buildings Act takes effect in 2026: Are we ready for the switch? - Rochester Business Journal

The clock is ticking on New York state’s impending ban on gas stoves, furnaces and other appliances in most new buildings.

The All-Electric Buildings Act (AEBA) – the first statewide law of its kind in the nation – was approved in the spring of 2023. It outlaws natural gas and other fossil fuel hookups in all new houses and buildings with fewer than seven stories beginning January 1, 2026, and in all new construction by 2029 (there are some exceptions for hospitals and laboratories).

“The end goal currently is to phase out gas appliances,” said Andrew M. Washburn an associate at Underberg & Kessler LLP who has been tracking the state’s gas appliance ban for several years. He notes it stems from legislation in 2019 called the New York State Climate Leadership and Community Protection Act, whose main goal was reducing New York’s greenhouse gas emissions and shifting the state’s energy to renewable sources.

Currently, the AEBA is being challenged. A lawsuit ( Mulhern Gas Co. v. Rodriguez) filed in October 2023 in the Court for the Northern District of New York by 13 plaintiffs, including unions, the National Gas and Propane Association, and the National Association of Home Builders, asserts the ban is preempted by the federal Energy Policy and Conservation Act.

“Once this lawsuit is determined, it’s going to have a big impact on the state because it will determine what the state can do and their next steps in achieving their goals of the New York State Climate Leadership and Community Protection Act, which are significantly larger than what is being accomplished by the All-Electric Buildings Act,” Washburn said.

Washburn’s interest in the AEBA stems from his firm’s representation of clients both large and small who work in areas such as affordable housing that will be directly impacted by the legislation.

“Some of the developers are concerned about construction delays based off of the availability of the new equipment they’ll need, rising costs and ultimately increased utility expenses,” Washburn said. “Not only are developers concerned, but consumers are also concerned that their utility bills are going to increase and about the capacity of the electric grid.”

He notes that increased construction costs and delays may further exacerbate the region’s current housing inventory shortage.

“I think a lot of people generally think that the goals of the All-Electric Buildings Act are noble, however, the time frame and implementation are the main concerns,” Washburn said.

Rick Herman, CEO of the Rochester Home Builders’ Association, also believes there is value in what the state is trying to accomplish environmentally, but they’re coming at it in the wrong way.

“We’re not against electrification – we’re against the mandate and the timeline,” Herman said. “Nobody came to the building community and said, ‘What’s reasonable?’ This is not a reasonable timeline.”

Herman says he knows of developers already using heat pumps (devices that use electricity to provide both heating and cooling to a building) who are having issues getting hold of them due to a lack of existing supply. He also questions their efficiency in cold weather conditions.

“We’re really limited on the types of heat pumps we’ll be able to use because of our climate zone,” Herman said. “I could see a dual or hybrid heat pump system with gas a backup working here, but to do away with gas service completely is just ludicrous.”

Joe Sortino, owner/builder of Sortino Properties, a Greece-based company that specializes in single-family homes and townhomes, is also concerned about the timeline of the AEBA.

“This is going to cost consumers more,” Sortino said. “We’ve had some people tell us they want to build now in order to get in before the ban. They’re very skeptical about heating bills and how efficient heat pumps are vs. gas when we start getting into zero or negative temperatures. They’re also worried about whether the electrical grid system is set up for this.”

At Pike Company, Ed Kurowski, executive vice president, sees more of a move to all-electric projects ahead of state mandates.

“As we engage with designers a lot are going with all-electric designs,” said Kurowski, who notes that some of this is by choice, some is due to state agencies like the New York State Division of Housing and Community Renewal putting demands on their projects, while others are tied into tax credits and funding.

Pike is working hard to educate clients about the many energy-related codes, initiatives and proposals in New York State right now, including NYStretch-2020 — a supplement to the 2020 Energy Conservation Construction Code of New York State that is available for voluntary adoption by local municipalities as a more stringent local energy code.

Per the New York State Energy Research and Development Authority: “On average, the NYStretch-2020 supplement improves the State Energy Code’s efficacy by roughly 10% and is a model for New York jurisdictions to use to meet their energy and climate goals by accelerating the savings obtained through their local building energy codes.”

Municipalities that adopt NYStretch-2020 may become eligible for grant funding and designation as a Clean Energy Community by the state. To see where your municipality stands with the NYStretch codes, visit https://www.nyserda.ny.gov/All-Programs/Clean-Energy-Communities/Tracki….

Caurie Putnam is a Rochester-area freelance writer. m