Hochul’s All-electric Mandate Sparks Backlash Over Costs and Grid Reliability

In a sweeping move to reduce greenhouse gas emissions, New York State is implementing a law that requires most new buildings to be all-electric starting in 2026. This policy prohibits gas, oil, and other fossil fuel systems for heating, cooking, and appliances in many newly constructed residential and commercial structures. The mandate is part of the state’s broader climate legislation and is intended to align new construction with New York’s emissions targets.

Beginning January 1st, 2026, new buildings up to seven stories tall, and commercial buildings with 100,000 square feet or more of conditioned floor area, must be built using only electric heat and appliances. Fossil fuel equipment (natural gas, heating oil, and propane) will generally be banned in these new builds.

Starting in 2029, the requirement expands to essentially all new buildings and homes, regardless of size or height (with some exemptions).

Existing buildings are not affected by this mandate even if they are being renovated. If a permit for new construction is substantially complete before December 31st, 2025, those projects are not subject to the new electric-only requirements.

The law includes several carve-outs and exemptions to address practical constraints:

-Buildings such as hospitals, restaurants, certain laboratories, agricultural structures, medical facilities, critical infrastructure, and others are exempt from the electric-only requirement.

-Emergency backup generators and stand-by power systems may still use fossil fuels.

-Where the local electrical grid cannot reasonably support full electric service in the timeframe required by the law, waivers or exceptions may be granted. One proposed guideline suggests an 18-month delay threshold for when electrical service upgrades are not feasible in that period.

The law stems from the All-Electric Buildings Act passed by the legislature in 2023. It was incorporated into the state’s Energy Conservation Construction Code via updates by the State Fire Prevention and Building Code Council.

A federal court in the Northern District of New York recently upheld the state’s authority to enforce the ban on fossil fuel equipment in new buildings (commonly called the “gas ban” or “all-electric law”), rejecting challenges that it conflicts with federal regulations.

Governor Kathy Hochul signed off on the law when it passed and her administration has overseen work to update building codes and regulatory frameworks to implement it. Though there have been delays and questions raised by builders about cost, grid readiness, and affordability, the regulatory bodies have moved forward with draft rule changes reflecting the new law.

Hochul has acknowledged concerns from builders and homeowners about upfront expenses and infrastructure upgrades. At the same time, the law is defended as necessary to meet the state’s climate goals under the Climate Leadership and Community Protection Act (CLCPA), which mandates deep emission reductions by 2030 and carbon neutrality by mid-century.

For those living or working in existing buildings, the new mandate will not force changes to their heating or cooking systems. Gas appliances already in place or in permitted renovations are protected.

However, anyone involved in new construction after January 1st, 2026 - especially for buildings up to seven stories or large commercial structures - will have to shift to electric-only systems. By 2029, the requirements will cover nearly all new construction, unless specific exemptions apply.

While many environmental advocates praise the policy as a bold step forward toward reducing reliance on fossil fuels and improving air quality, builders and homeowners warn of higher construction costs, stress on the power grid, and affordability issues.

Hochul’s All-electric Mandate Sparks Backlash Over Costs and Grid Reliability