Jesse Hiney shared his forecast for the Renewable Energy & Clean Energy/Sustainability Industries:

New York’s All-Electric Buildings Act (AEBA), enacted in 2023, was poised to reshape the state’s construction landscape by phasing out fossil-fuel systems in new buildings. Designed to support the New York Climate Leadership and Community Protection Act goals, the law established the nation’s first statewide mandate requiring all-electric systems in most new construction. However, as 2026 approaches, enforcement of the law remains in flux.

Under the AEBA, the first phase of the law was set to begin Jan. 1, 2026, and apply to new buildings seven stories or fewer and would require the use of all-electric heating, hot water, and cooking systems. AEBA implementation on taller buildings is slated for 2029, when the requirement would expand to all new buildings statewide.

However, in November 2025, New York agreed to suspend enforcement while litigation challenging the law proceeds. Although a federal district court upheld the AEBA in mid-2025, an appeal is pending, and compliance deadlines will not be enforced until the stay is lifted. The law nevertheless remains on the books.

If implemented in its current form, the AEBA will apply broadly to new residential and commercial construction, with key exceptions for facilities such as hospitals, manufacturing uses, laboratories, and commercial kitchens (as well as existing/approved buildings as of the AEBA effective date).

While the litigation pause creates short-term uncertainty, prospective developers should consider an all-electric future. If reinstated, the AEBA will fundamentally reshape building design, utility planning, and development timelines and budgets across New York.