New York state will delay its statewide mandate to build all-electric buildings, which was scheduled to go into effect on Jan. 1, 2026.

According to court papers obtained by Spectrum News, attorneys for the state agreed in a filing in U.S. District Court to delay implementation of the law until the Second Circuit U.S. Court of Appeals makes a ruling on the matter.

Known as the All-Electric Buildings Act, the legislation was tucked in the state budget in 2023 and bans new gas hookups in new buildings under seven stories starting Jan. 1. The mandate would apply to all other buildings constructed after Jan. 1, 2029.

Gas and construction trade groups sued to block the law two years ago, arguing it violates the federal government’s rules around how gas appliances are regulated.

With the Jan. 1 date fast approaching, the law has faced new scrutiny as of late over increased construction costs at a time of already limited affordable housing, as well as potential strain on a future electric grid. The New York Independent System Operator (NYISO) released a report in October indicating the state’s electric grid could have reliability issues in New York City, Long Island and the Hudson Valley within five years, due to greater burdens from cryptocurrency, data mining and a shift to electric energy over fossil fuels.

Those concerns have prompted calls to delay the All-Electric Buildings Act. Moderate Democrats state Assembly last month signed onto a letter asking Gov. Kathy Hochul to do just that.