New York’s All-Electric Buildings Act (AEBA), originally set to take effect on January 1, 2026, has been temporarily placed on hold. The law would have prohibited the installation of gas stoves, gas heating equipment, and other fossil fuel–powered appliances for most new construction projects throughout New York State. Under this prohibition, builders would have no choice but to exclusively utilize electric systems for such services.
The pause stems from an ongoing lawsuit before the U.S. Court of Appeals which is challenging the AEBA on the grounds that it is preempted by federal authority under the Energy Policy and Conservation Act, rendering the AEBA unenforceable. In response, New York State agreed to suspend implementation of the regulations until 120 days after the U.S. Court of Appeals issues its decision in the case.
Why This Matters:
For now, developers, builders, property owners, and existing or prospective real estate investors may continue operating under current rules. As a result, it may currently be possible to secure building permits allowing the use of fossil fuels, which would otherwise be prohibited once the AEBA takes effect. Given the time sensitive nature and overall uncertainty due to the pending U.S. Court of Appeals decision, interested parties should remain attentive to developments in the litigation, as the 120-day suspension in implementation of the AEBA indicates the State intends to move forward with implementation, in whole or in part, if the challenge is ultimately rejected.
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