NY puts off implementing law that would ban natural gas in new homes and buildings

New York state officials have agreed to suspend implementation of a revolutionary new rule that would ban natural gas or other fossil fuel equipment from all new homes and buildings of seven stories or less.

The All-Electric Buildings Act had been scheduled to take effect Jan. 1. Now it’s on hold.

The agreement to suspend implementation was made in a federal court case brought by a coalition of builder associations, gas equipment sellers and others seeking to overturn the new law. The state attorney general’s office agreed to a stipulation filed in court today that requires the state to suspend implementation until the court case is resolved.

Some home builders and other critics of the law claimed it could increase the cost of new housing at a time when many New Yorkers are already priced out of the market. But state officials and climate activists supported efforts to electrify buildings and phase out fossil fuel appliances as a critical part of reducing greenhouse gas emissions.

Buildings account for nearly one-third of the state’s greenhouse gases.

Gov. Kathy Hochul’s office said the delay would reduce uncertainty stemming from the lawsuit but that the governor still supports the move to electrify buildings.

“The governor remains committed to the all-electric-buildings law and believes this action will help the state defend it, as well as reduce regulatory uncertainty for developers during this period of litigation,” said Ken Lovett, the governor’s senior communications advisor on energy and environment.

”Governor Hochul remains resolved to providing more affordable, reliable, and sustainable energy for New Yorkers.”

But environmentalists slammed Hochul for what they described as a disingenuous backing away from the state’s climate goals.

“She’s using litigation as cover to delay the All-Electric Buildings Act,” said Michael Hernandez, New York policy director for Rewiring America. ”Failing to implement the law will come at the expense of regular New Yorkers, forcing families into cheaply built homes that are more expensive to own, rent, and heat."

>>Read more: NY’s ban on gas equipment in new homes is coming soon. Are we ready for this revolution?

New York would be the first state to impose a statewide ban on fossil fuel equipment in new construction.

The All-Electric Buildings Act of 2023 was passed to help New York meet the aggressive targets for greenhouse gas emissions set by the 2019 Climate Leadership and Community Protection Act. The all-electric rule was subsequently incorporated into the state building codes and was to take effect in January.

A coalition of opponents to the all-electric mandate — including the state and national builders associations, gas equipment dealers, plumbers and utility workers — sued in federal court hoping to overturn the law. The group asked for a temporary injunction to block implementation of the rule while their appeal was heard.

The stipulation filed today resolved the matter and will prevent further litigation over whether an injunction should be ordered, according to court documents.

According to the legal papers, the all-electric rule is suspended until 120 days after a decision is reached in the U.S. Court of Appeals for the Second Circuit, where it is being heard, assuming the rule is upheld.

However, the suspension will remain in effect if the plaintiffs appeal to the Supreme Court and the court agrees to hear the case.

For many new homebuyers, the all-electric mandate would have meant installing heating systems with air source heat pumps, which cost more than gas furnaces but are roughly three times more efficient.

Many environmentalists had implored Hochul not to delay the rule. The governor had already been accused of backsliding on the state’s climate goals after the Department of Environmental Conservation approved permits for a new natural gas pipeline in the New York City area and a natural gas-fired power plant on the shore of Seneca Lake.

Environmental advocates including New Yorkers for Clean Power and the Building Decarbonization Coalition are planning a news conference Thursday to decry what could be a years-long delay in the all-electric mandate.

But Republicans were quick to celebrate the change of direction Wednesday.

“New Yorkers face enough burdens as it is, and removing natural gas, propane and oil as heating options would only drive costs higher. Families can’t afford another mandate that makes everyday life more expensive and less reliable,” said Assembly Minority Leader Will Barclay, R-Pulaski.

Staff writer Tim Knauss can be reached at:email|Twitter| 315-470-3023.