NYS in legal filing says it is delaying Jan. 1 start for 'all-electric' building mandate

ALBANY — A state mandate requiring new buildings to be constructed as "all-electric" won’t be implemented on Jan. 1 and will be delayed while a lawsuit makes its way through federal court, lawyers for Gov. Kathy Hochul said in a legal filing Wednesday.

Newsday reported last month Hochul was considering delaying the mandate, following a push from some moderate Democrats and Long Island business groups. The new filing Wednesday means the administration won’t seek to implement the mandate until a midlevel federal court rules on the lawsuit, which could push well into 2026 if not longer.

Business groups applauded the decision to delay the mandate.

"Today’s decision reflects the kind of common-sense governance that New York needs," Mike Florio, CEO of the Long Island Builders’ Institute, told Newsday. "Until we can fully understand the effects of this mandate, this ruling will allow us to continue keeping New York affordable for families, businesses and builders alike."

In a statement, Hochul spokesman Ken Lovett said: "The governor remains committed to the all-electric-buildings law and believes this action will help the state defend it, as well as reduce regulatory uncertainty for developers during this period of litigation."

The mandate, enacted in 2023, was set to begin Jan. 1, starting with new construction of buildings under seven stories and applying to all others in 2029.

Backers have said it would reduce pollution and the use of fossil fuels and would eventually save consumers on their utility bills. State officials say buildings account for around 30% of the state’s greenhouse gas emissions.

But those asking for the delay say the state’s electric grid and supply chain isn’t ready to handle the switch. Further, the New York State Builders Association, gas companies and others filed a lawsuit contending the state statute would violate federal energy laws.

The lawsuit is before the U.S. District Court in Albany, where companies had sought an injunction to block the Jan. 1 launch. In what’s called a "stipulation," the state’s lawyers said they would suspend the launch pending a ruling on the case in the federal appellate division, which is one step up the legal ladder. The plaintiffs request for an injunction also would be suspended.

The midlevel court doesn’t even have the case on its docket yet, making a timetable uncertain.

The state and the companies said they were agreeing to the stipulation "solely for purposes of resolving the pending motion for an injunction pending appeal in this court, to avoid further litigation on any request by plaintiffs to obtain injunctive relief pending appeal, to avoid uncertainty during the appellate process," according to the order signed by federal Judge Glenn T. Suddaby.

The Times Union of Albany first reported the order.

By Yancey Roy

yancey.roy@newsday.com@yanceyroy