What Happened?

Are state and local rules that ban natural gas in new buildings driving up construction costs and home prices? In a Sept. 2 hearing titled "No Flame, More Pain: How State and Local Bans on Natural Gas Increase Costs," the House Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs heard from four witnesses with competing views on whether going all-electric makes housing more or less affordable. [](#ngr-397756e9-461b-4890-b049-4272f21814df)

The hearing came as the Trump administration challenged such policies in court and Republican lawmakers pushed federal legislation that would limit states' and cities' power to restrict which energy sources builders can use.

Why Does it Matter to Me?

Mike Fazio, executive director of the New York State Builders Association, testified that fully electrifying a new home in colder climates can add more than $15,000 to construction costs. He argued, on behalf of the New York State Builders Association, that a $1,000 increase in a new home's price could price thousands of New York households out of the market entirely.

Supporters of all-electric building rules counter that the savings add up over time. A 2025 analysis cited at the hearing found an average of $12,050 in savings over 15 years for households in newly built, all-electric single-family homes compared with homes using gas or propane. Lower-income households may face a harder transition, and the Center on Budget and Policy Priorities has called on states to provide direct energy assistance to low- and moderate-income households during the shift to cleaner energy systems.

Both Sides, Now

Republicans and industry witnesses argued that gas restrictions raise the cost of building homes and take choices away from consumers. Subcommittee Chair Rep. Eric Burlison (R-MO) said the rules increase costs and reduce consumer choice. Patrick McCormick, a former chief counsel for the Senate Energy and Natural Resources Committee, echoed that argument, saying the restrictions limit what homeowners can use to heat and cook.

The Democratic witness, Pete Wyckoff of Evergreen Action, defended building electrification policies and argued that efficient electric appliances can reduce household energy costs while cutting pollution. Ranking Member Rep. Maxwell Frost (D-FL) offered the Democratic response to the hearing's arguments.

The legal picture is unsettled. Federal courts have split on whether state and local gas bans are overridden by federal appliance-efficiency law. A federal appeals court covering California ruled that Berkeley's gas ban was preempted by federal law. But in June, a different federal appeals court upheld New York's all-electric building requirements, expressly disagreeing with the California ruling. That conflict between courts could eventually push the question to the Supreme Court.

The Trump administration sued California cities Petaluma and Morgan Hill in January, arguing their gas restrictions conflicted with federal law. Both cities subsequently dropped or changed their rules, and the Justice Department voluntarily dismissed the lawsuit in March.

What Happens Next?

Congress has two bills in play. Rep. Nick Langworthy (R-NY) introduced the Energy Choice Act, which would bar state and local governments from restricting access to any energy source based on its type or origin. Sen. Mike Lee (R-UT), chair of the Senate Energy and Natural Resources Committee, introduced the Energy Efficiency Reform Act in August, which would revise the federal appliance-efficiency law at the center of the court disputes.

The House separately passed H.R. 1949, the Unlocking Our Domestic LNG Potential Act of 2025, which deals with federal authority over natural gas imports and exports, on a 217-188 vote in November 2025. That bill now sits on the Senate Legislative Calendar. Neither the Energy Choice Act nor the Energy Efficiency Reform Act has a scheduled vote, and both could stall without further action from Senate leadership.

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This article was generated by AI pulling from data. Each article is edited by an editor for accuracy and clarity.

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