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Second Circuit Says New York’s All‑Electric Buildings Act Is Not Preempted by Federal Law

The decision clears a major federal legal barrier to the state’s ban on new gas hookups, with cost, housing and electric grid reliability concerns still unresolved.

Overview

  • A federal appeals court held that the 1975 Energy Policy and Conservation Act does not bar New York from restricting new gas hookups under the All‑Electric Buildings Act.
  • The law, passed in New York’s 2023 budget, phases out new gas hookups for buildings under seven stories and extends to other buildings constructed after January 1, 2029.
  • New York had paused the law’s start date while industry groups sued to block it, and the court ruling removes the central federal statutory obstacle to implementation.
  • Opponents warn the move will raise construction costs, squeeze affordable housing and strain the power system, citing a NYISO report that flagged potential reliability risks in New York City, Long Island and the Hudson Valley.
  • Environmental groups hailed the ruling as protecting state and local authority, while industry plaintiffs and some legislators say federal action or new laws like the proposed Energy Choice Act could still affect the policy’s future.