The “All-Electric Buildings Act (AEBA) has been in the news recently. If you are not familiar with this new law that takes effect in New York State on January 1st, 2026, it requires many newly constructed buildings in New York State to be built in such a way that is “all electric” for purposes of heating, cooking and hot water.
According to a white paper authored by staff at the State of New York Department of Public Service: “On, May 3, 2023, in connection with the Fiscal Year 2023-2024 budget process, New York State enacted the All-Electric Buildings Act (Part RR of Chapter 56 of the Laws of 2023), which amended the Energy Law directing extensive changes to the State Uniform Fire Prevention and Building Code (Building Code) and State Energy Conservation Construction Code (Energy Code) prohibiting the installation of fossil-fuel equipment and building systems in certain newly constructed structures, subject to some exemptions.”
In simple terms, no natural gas connections will be allowed for heating, natural gas ranges, natural gas clothes dryers or hot water systems for any newly constructed residential buildings up to seven stories tall and in any newly constructed commercial or industrial buildings under 100,000 square feet. Newly constructed commercial and industrial buildings which exceed 100,000 square feet will be required to adopt this standard in New York State by 2029.
The exceptions to this law include natural gas whole or partial house backup generators, agricultural buildings, medical facilities and hospitals.
What is the objective of the law?
My research has revealed that, according to an Internet landing page created by the New York State Assembly, “Since buildings alone account for 32% of greenhouse gas emissions in New York…”, the objective is to reduce greenhouse gas emissions from the building sector.
Proponents of this law contend that contemporary electric appliances, including electric heat pumps, demonstrate superior energy efficiency relative to natural gas-powered counterparts. They contend that such advancements may result in reduced utility expenses.
Opponents of the law, including new home builders, question if the general public would be inclined to purchase a newly constructed home that doesn’t include natural gas ranges, a natural gas hot water supply and natural gas fireplaces. Opponents are concerned with the reduction of consumer choice and question whether the electric grid can handle the increase in electric demand.
I first encountered older models of heat pumps in the late 1980’s that were not suitable to be used below 37 degrees Fahrenheit. This required homeowners to install a secondary source of heat, typically electric heat strips. I have read online articles which state that new heat pumps or “cold climate” heat pumps, are more efficient than their original counterparts and can produce heat up to -15 degrees.
In further research as to whether the electric grid can handle the increased demand, I searched the National Grid website for their position on the matter. In summary and in part, the author of National Grid’s assessment writes “We believe that electrification will play a cornerstone role in the clean energy transition that is currently underway.” And “National Grid believes the Assembly’s proposal to electrify new construction to be the most pragmatic approach under consideration because it recognizes the need for a reliable grid, maintaining affordability for all customers…”. The brief article on the National Grid website does not explicitly address whether the electric grid in New York State is capable of supporting increased demand.
I sought to determine if New York State has considered or plans to implement a ban on the sale of natural gas appliances for existing homes such natural gas ranges, natural gas clothes dryers, fireplaces and furnaces, natural gas fired hot water tanks or “instant hot water” systems. There was nothing online which addressed this question. I did find online postings from the California Air Resources Board (CARB) who, in 2022, announced a prohibition on the sale of new natural gas furnaces and water heaters by 2030. This ban applies to newly constructed homes and existing homes, and the replacement of natural gas fired furnaces and hot water systems in the State of California.
In summary:
- The “All Electric Buildings Act” is set to take effect in New York State on January 1, 2026.
- The legislation prohibits new natural gas connections for residential buildings of up to seven stories as well as any newly constructed commercial or industrial buildings with an area less than 100,000 square feet.
- The primary objective of this law is to reduce greenhouse gas emissions within New York State.
Will this law increase or decrease costs for consumers? Will this legislation achieve its intended environmental impact? Opinions posed to answer these questions – and others - vary considerably. Ultimately, as with any complex and dense issue, the outcome for each of us will only become clear over the passage of time.
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