New York State’s updated Energy Conservation Construction Code (Energy Code) will be reality soon unless the Governor stops it
From NY State Senator Tom O’Mara
There’s a fast-approaching state mandate that, if allowed to take effect as it stands, is bad news for New York. Many of us have warned against it throughout the past year, yet it’s still moving forward and setting off alarms.
Governor Hochul can stop it.
Specifically, it concerns New York State’s updated Energy Conservation Construction Code (Energy Code) and the new mandates it will impose. The revised code, set to take effect at the end of the year, will drive up the cost of the construction of single-family homes by at least $7,500 – and that’s before taking into account the mandate that all new buildings, including new homes, under seven stories, be equipped with all-electric heating, cooling, and appliances beginning in January 2026. Larger residential and some commercial units would be phased in by 2029. All told, additional costs under this mandate could rise to at least $25,000 – and even that’s before factoring in higher monthly energy bills.
The New York State Builders AssociatIon (NYSBA) believes that “every $1,000 increase in the price of a home pushes nearly 7,000 New York families out of homeownership.”
Pay attention. It’s yet another example, and one that’s right on the doorstep of being enacted, of an Albany Democrat energy strategy, started in 2019 under the “Climate Leadership and Community Protection Act” (CLCPA), that says no to consumer choice, ignores affordability for most New Yorkers, and imposes additional and unreasonable burdens and drives up costs on builders during what’s already a generational housing crisis in this state. It would only stand to accelerate the decline of a state economic and business climate already in freefall.
In a letter last week to Governor Hochul, I joined my Senate Republican Conference colleagues to urge the governor to immediately issue an Executive Order giving builders and developers the flexibility and the option to continue doing business under the existing 2020 New York State Energy Conservation Construction Code.
“Other states are taking steps to avoid such unnecessary cost increases,” we wrote. “Vermont Governor Phil Scott recently signed Executive Order No. 06-25, which provides builders with the option of using Vermont’s 2020 Codes when they are more practical and affordable. Governor Scott emphasized that this flexibility would help lower construction costs and make it easier to build much-needed housing. New York should follow Vermont’s lead. Our state is in the midst of a severe housing affordability crisis. Adopting new building requirements that will substantially increase construction costs, especially for residential housing, runs directly counter to the urgent need to make homes more affordable. These costs will fall hardest on working- and middle-class families who are already struggling to find housing within their means.”
The governor needs to act before it’s too late and New York State continues, yet again, down the wrong road on energy policy.
While the Albany Democrats repeatedly speak of affordability concerns, their actions only make New York State a more expensive place to live and do business. The energy mandates are just a few examples of their focus on imposing far-reaching requirements that are not feasible, affordable, or reliable. This is particularly true for the all-electric building requirements. The current timeline raises far too many unanswered and troubling questions. It would only deliver an enormous price tag for builders and already overburdened consumers, families, ratepayers, and taxpayers. Albany needs to deliver common sense and flexibility, and we can start by allowing builders to opt out of the new Energy Code and its rapidly approaching mandates.
NYSBA recently conducted a survey that found that “only 14% of New Yorkers report being moderately or significantly aware of the law.”
Believe me, the more New Yorkers are aware of what’s coming, the more shocked they’re going to be. For those who do understand where we’re headed, according to NYSBA, “cost concerns, grid reliability, and loss of consumer choice are the most common objections.”
NYSBA Executive Director Mike Fazio recently wrote, “Despite such clear data on the housing crisis, the state is pushing forward with a sweeping all-electric mandate for new construction that will go into effect next year. The mandate risks exacerbating this crisis, adding thousands of dollars to building costs, delaying projects and straining our already-overburdened power grid. How we navigate the new mandate comes with real consequences…The costs to electrify a home — including installing heat pumps and upgrading electrical service — can easily exceed $25,000 per unit…New York needs a balanced path forward. The state must phase in electrification responsibly so infrastructure and supply chains can catch up. At the same time, we must continue to maintain diverse energy options to serve as a bridge to long-term reliability and affordability.”
A 2024 study from the state comptroller’s office found that New York State already ranked 32nd in the nation in adding new housing units.
It’s exactly what we’ve been warning. These Albany Democrat policies, if left unchecked, will:
- > escalate already skyrocketing utility costs;
- > force homeowners to retrofit and electrify their homes to eliminate the use of natural gas at the cost of thousands upon thousands of dollars;
- > destroy consumer choice and freedom; and
- > drive up the costs of building homes and homeownership, thereby accelerating this state’s decline for the next generation.
