US Court of Appeals Upholds New York’s All-Electric Building Act

US Court of Appeals Upholds New York's All-Electric Building Act

Victory

Decision marks the first court of appeals to confirm that states and cities have the power to enact building electrification laws, which are critical to clean energy transition; Saves New Yorkers money and cuts harmful indoor air pollution and climate-heating combustion

Contacts

Nydia Gutiérrez, [email protected]

Today, the United States Court of Appeals for the Second Circuit issued a landmark decision affirming that New York's All Electric Buildings Act (AEBA), which requires appliances powered by clean energy, is not preempted by federal law. The decision likewise affirmed that New York City's Local Law 154, which requires the same outcome for most new city buildings, is not preempted. Today's decision marks the first court of appeals to confirm that states and cities have the power to enact building electrification laws, which are critical to our energy transition.

The Second Circuit Court of Appeals covers the states of New York, Connecticut, and Vermont. The court rejected the Ninth Circuit Court of Appeals, which ruled in 2023 that federal law overrode state and local control over building electrification laws. The Ninth Circuit's decision has now been rejected by a court of appeals, as well as district courts in Maryland, the District of Columbia, and New York.

In 2023, New York enacted the All-Electric Building Act (AEBA), adopted as part of the Fiscal Year 2024 New York State Budget marking investments in energy affordability, sustainable buildings, and clean energy development. Buildings account for more than 30% of the state's greenhouse gas emissions. The AEBA adoption made New York the first-in-the-nation to advance comprehensive legislation for constructing modern zero-emission new homes and buildings with targets to reduce consumer rising energy costs, create healthier living and working environments, and add thousands of local clean energy and energy efficiency jobs.

In response, gas corporations and others with business interests in fossil fuels filed a challenge aiming to restrict New York's ability to meet its climate mandates by cutting fossil fuel emissions. The groups claimed that federal law, Energy Policy and Conservation Act (EPCA) overrides all state control over fossil fuel appliances. Today's decision affirms that EPCA only limits certain rules about energy efficiency for appliances, not broader state laws like these.

Earthjustice represented the Intervenor Defendants, New York Geothermal Organization (NY-GEO) and PUSH Buffalo, in briefing and at oral argument in support of New York's law.

"Today's decision is a welcome return to a commonsense understanding of state and local control over the homes we live in and the air we breathe," said Dror Ladin, Senior Attorney at Earthjustice. "The gas industry tried to take away the ability for local voters to choose to build cleaner, healthier, and more sustainable homes for our kids to grow up in. But Congress has never supported such a power grab, and the court saw right through the gas industry's claims."

"The decision by the Second Circuit Court of Appeals is a victory for residents of WNY, many of whom are struggling right now with price shocks from fossil fuel volatility and extreme heat conditions that could be mitigated by an economywide turn toward all-electric buildings. Modern, efficient, and renewable heating and cooling solutions are commercially available and could be within reach for thousands more New Yorkers if the state is able to lead a market transformation effort that leverages the requirements of the All-Electric Buildings law," said Clarke Gocker, Sr. Director of Movement Building, PUSH Buffalo.

Christine Hoffer, Executive Director of NY-GEO, issued a statement regarding the recent legal victory: "NY-GEO, acting as an intervenor in this matter, extends its congratulations to the State of New York for prevailing in this appeal. Our members are eager to collaborate with the State to ensure the All-Electric Building Act is effectively implemented for new construction projects.

Geothermal heat pump technology is essential for achieving New York's building sector climate objectives while maintaining grid stability. We remain dedicated to fostering a future that is safe, stable, and affordable for every family and for the generations of New Yorkers to come."

Additional Resources

• Earthjustice Statement: Fossil Fuel Industry-led Lawsuit Aims to Dismantle New York's Nation-leading All-Electric New Buildings Law
• About the Northeast Office

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