Since our October 8, 2025 summary, Governor Hochul recently announced on November 12, 2025, that the State of New York has agreed to temporarily delay enforcement of the All-Electric Buildings Act’s (AEBA) implementing regulations. As a result, the AEBA requirements that were scheduled to begin with permits filed on or after December 31, 2025, are effectively on hold until the U.S. Court of Appeals for the Second Circuit renders a decision on the appeal in a challenge to the law brought under the caption, Mulhern Gas Co., Inc. et al. v. Mosley et al., No. 25-2041 (2d Cir., filed Aug. 25, 2025). In that case, Plaintiffs argue, inter alia, that the State law provisions that ban fossil-fuel equipment in most new buildings are preempted by the federal Energy Policy and Conservation Act (EPCA). As such, Plaintiffs seek declaratory and injunctive relief to prevent implantation of the AEBA requirements. The underlying statute has not been repealed, so the phased structure of the AEBA remains in place, and the State has reiterated its commitment to the law even as implementation is paused.
Once implemented, the AEBA preserves a series of narrow, use-based exemptions under which fossil-fuel systems may still be utilized for emergency backup and standby power in specific facilities and authorizes case-by-case relief where electric service cannot reasonably be provided within a suitable timeframe.
The current delay should not be mistaken for a retreat from electrification by the State. Rather, it is a temporary pause in implementation that gives developers, sponsors, and lenders a narrow opportunity to reevaluate the timing/bona fides of pipeline projects, update financial projections, and refine permitting and design strategies for both residential buildings under eight stories and commercial or industrial buildings with footprints up to 100,000 square feet. Our team is closely monitoring the situation and will strive to keep you updated.
Reach our Condominium, Cooperative & HOA Practice Group:
Richard Herzbach: rherzbach@certilmanbalin.com, Donna-Marie Korth: dkorth@certilmanbalin.com, Darren Stakey: dstakey@certilmanbalin.com.
