The proposed "All-Electric Building Act" amends Title 37 of the General Laws by establishing regulations for the construction of new buildings. Under this act, no city or town may issue permits for the construction of any new commercial, residential, or mixed-use building that is not an all-electric building if the initial application for such a permit is submitted after December 31, 2026, unless certain circumstances apply. An all-electric building is defined as one that uses a permanent supply of electricity as the sole source of energy to meet its building energy needs, without any natural gas, propane, or oil systems.

Exceptions to this rule are provided for cases where constructing an all-electric building is deemed physically or technically infeasible, as determined by the local permitting body, and for specific types of facilities such as hospitals, medical facilities, laboratories for biological research, and restaurants. The act also outlines the requirements for buildings to be considered "all-electric ready," which includes having sufficient electrical systems and designs for future retrofitting to an all-electric building.

The public utilities commission, in conjunction with the office of housing and community development and the state building code commission, is tasked with promulgating guidelines for electric-ready buildings by January 1, 2026. Additionally, the act mandates that by February 1, 2027, the public utilities commission, the office of housing and community development, and the state building code commission must report jointly to the governor, the senate president, and the speaker of the house regarding necessary changes to electric rate designs, subsidy programs, policies, or laws to ensure that the act does not diminish the production of affordable housing or the affordability of electricity for customers in all-electric buildings. For the purpose of this report, "affordability of electricity" is defined as electricity costing no more than six percent (6%) of a residential customer's income.