New York State is moving forward with one of the nation’s most ambitious efforts to decarbonize its building sector. Starting January 1, 2026, the All-Electric Building Act will ban gas-powered systems in most new residential and commercial buildings under seven stories. The law is part of the state’s broader climate strategy to reduce greenhouse gas emissions 40% below 1990 levels by 2030, with a target of net-zero by 2050.
While electric vehicles often dominate the climate conversation, this legislation shifts attention to buildings, a sector responsible for roughly 32% of the state’s emissions. The act focuses on transitioning heating, cooking, and water systems in new construction to electric power, even though nearly half of the state’s electricity is still generated from natural gas.
A New Standard for Future Buildings
The All-Electric Building Act, passed in 2023 as part of New York’s 2023/24 budget (S4006c/A3006c), sets a clear requirement: from 2026 onward, newly constructed buildings up to seven stories must use electric-only systems. This includes heating, hot water, and cooking appliances. Gas hookups for these systems will no longer be permitted in the majority of new homes and small commercial buildings.
According to the New York State Energy Research and Development Authority (NYSERDA), buildings constructed under this new rule could see a 17% reduction in energy use. In terms of climate impact, the Rocky Mountain Institute estimates that an all-electric home will generate half the emissions of a mixed-fuel equivalent over 15 years. The act doesn’t require changes in existing buildings or in structures undergoing renovation, and existing gas appliances can still be replaced with new gas models.
The law allows exemptions for certain sectors, including hospitals, doctor’s offices, restaurants, factories, and agricultural buildings. It also makes room for waivers if local electric utilities cannot guarantee adequate service. Emergency backup systems powered by fuel, such as gas generators, remain allowed under the new rules.
Larger Buildings and Commercial Spaces to Follow
While low-rise buildings face the first wave of changes in 2026, the act’s provisions extend further. Existing commercial buildings with 100,000 square feet or more of conditioned space will also have to comply beginning in 2026. Smaller commercial buildings and taller residential complexes, those above seven stories, will follow in 2029.
This staged approach aims to balance climate goals with grid readiness. According to statements from the Public Service Commission, careful coordination with energy providers was key to ensuring that the power grid can handle the increased demand that will come with more electric heating and appliances. Public input is also being considered: before final implementation, the state has committed to a public comment period.
Despite gaining momentum during legislative negotiations, the law has met opposition, particularly from representatives of rural communities. A group of moderate Democrats has called for a delay in implementation, citing concerns about energy reliability in remote areas and the impact on homeowners during winter power outages.
Still, supporters argue that the long-term benefits—both environmental and economic, outweigh the concerns. As highlighted in NYSERDA’s 2024 report, electrification in construction could lead to thousands in savings per household in both operational and building costs over time.
New York’s action follows growing national momentum toward building electrification, with other cities and states expected to watch closely. As one of the largest and most influential states in the U.S., New York’s policy could serve as a model, or a cautionary tale, for how to transition to cleaner infrastructure.
