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. Additionally, exemptions are granted for specific types of facilities, including 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 to allow for future retrofitting of mixed-fuel buildings to all-electric buildings. 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.

Furthermore, 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. The act aims to ensure that electricity costs do not exceed six percent (6%) of a residential customer's income.