Courts Uphold Building Electrification Laws

The Second and Ninth Circuit Courts recently issued decisions supporting city and state efforts to transition new buildings away from fossil fuels. In Association of Contracting Plumbers v.

City of New York, the Second Circuit affirmed laws in New York State and New York City restricting gas appliances in new construction. Simultaneously, the Ninth Circuit upheld a South Coast Air Quality Management District rule limiting nitrogen oxide emissions from water heaters and boilers in Rinnai America Corporation v. South Coast Air Quality Management District.

Both cases centered on interpretations of the Energy Policy and Conservation Act (EPCA) and its preemption of state and local energy regulations. The courts determined that laws addressing appliance use after sale do not concern “energy use” as defined by EPCA, which focuses on standardized testing procedures. The Ninth Circuit in Rinnai also found the rule aligned with the Clean Air Act, reinforcing the district’s authority.

These rulings create a clear split with a prior Ninth Circuit decision, California Restaurant Association v. City of Berkeley, and may prompt a Supreme Court review.

However, the Second Circuit’s opinion is heavily supported by established principles of statutory interpretation and prior Supreme Court precedent, suggesting a durable outcome. Cities can now confidently pursue electrification policies, and additional pathways to decarbonize buildings remain available.