New York has agreed to a stipulation delaying the All-Electric-Buildings Act (AEBA), which bans the use of gas-powered stoves, furnaces, propane, and other fossil fuel hookups in most new residential and commercial buildings in accordance with goals in the Climate Leadership and Community Protection Act. The AEBA applies to larger commercial buildings with 100,000 square feet or more of floor area, beginning in 2026. Taller residential buildings and smaller commercial buildings will be rolled into the program starting in 2029.

In July, a federal judge upheld the law in a lawsuit filed by trade and labor groups challenging that the AEBA violates the federal Energy Policy and Conservation Act. The State agreed not to enforce the zero-emission standard and suspend the effective date of regulations for enforcement of the Act until the Court of Appeals rules on the two-year-old lawsuit challenging the AEBA.

NFIB supports efforts to reduce greenhouse gas emissions, protect our environment, preserve New York’s natural assets, and responsibly transition to sustainable energy sources, but the state cannot afford an electric grid reliability and affordability crisis that the January 1st, 2026, implementation of the AEBA would create. NFIB will continue to monitor this issue.