Federal Appeals Court Upholds All-Electric Buildings Act

Stay Likely to Lift

On June 30, 2026, the Second Circuit Court of Appeals ruled that New York's All-Electric Buildings Act and New York City's parallel Local Law 154 are not preempted by the federal Energy Policy and Conservation Act (EPCA), affirming two lower court decisions in favor of the City and State.  The trade associations and unions that filed suit challenging the Act and law had argued that EPCA's federal appliance efficiency standards override the state and local bans on fossil fuel equipment in new construction.  The Second Circuit disagreed, holding that EPCA only preempts laws regulating how much energy a covered appliance uses, not laws that bar a particular fuel type altogether.

For towns, this is the federal litigation that has been holding the All-Electric Buildings Act's effective date in limbo since the state agreed to a stay last November. With this Second Circuit decision, the legal obstacle that justified the delay has been removed, though it's worth noting the court openly split from a contrary Ninth Circuit ruling on the same question, so Supreme Court review remains possible.  Unless and until that happens, towns should expect the state to move toward implementation, and code enforcement officers should start preparing for the practical reality of enforcing fossil fuel equipment restrictions on new building permits under seven stories. We'll keep members posted as the state announces a new effective date or further appellate action.