In a recent article published in the Rochester Business Journal, Underberg & Kessler real estate and commercial lending attorney, Andrew M. Washburn, provided insight on New York State’s impending ban on gas appliances. In “New York’s All-Electric Buildings Act takes effect in 2026: Are we ready for the switch?” Andrew described the goals of the All-Electric Buildings Act (AEBA), the legal challenges to the Act, and the impact on the local real estate and construction industry.
The AEBA prohibits the installation of fossil fuel equipment/hookups in new buildings, starting in 2026 for buildings of up to seven stories and 2029 for larger buildings. Andrew has been tracking the state’s gas appliance ban for several years and frequently speaks to trade associations and community organizations on the topic. He stated that it stems from legislation in 2019 called the New York State Climate Leadership and Community Protection Act, whose main goal is reducing New York’s greenhouse gas emissions and shifting the state’s energy to renewable sources.
However, the AEBA is facing legal challenges, including a Federal lawsuit in the Northern District of NY (Mulhern Gas Co. v. Rodriguez, 1:23-cv-01267), where the Plaintiffs assert that a federal statute, the Energy Policy and Conservation Act, preempts any state or local regulations on energy consumption by appliances, and thus negates the All-Electric Building Act.
The result of the lawsuit could have a big impact on the real estate and construction industry. Andrew explained, “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,” He noted 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.”
Andrew M. Washburn is an attorney in UK's Real Estate & Finance and Commercial Lending Practice Groups. He can be reached at awashburn@underbergkessler.com or 585.258.2885.
Reprinted with permission from Rochester Business Journal. To view the full article, click here.