US appeals court upholds Los Angeles-area gas appliance ban

In a major decision today a divided 9th U.S. Circuit Court of Appeals has upheld a pollution-control rule covering four Los Angeles-area counties, rejecting challenges from trade groups and appliance manufacturers who argued the policy conflicted with federal energy law.

As reported, a federal appeals court on Thursday July 2, upheld a ban on the manufacture, sale and installation of various appliances that emit nitrous oxides, rejecting claims by appliance ‌makers and trade groups that the pollution control measure conflicted with federal law.

In a 2-1 decision, the court said "nothing in the text and history of the federal Energy Policy and Conservation Act EPCA suggested that Congress intended to block states from using reasonable means to regulate appliance emissions."

The South Coast Air Quality Management District passed the zero-emissions rule for large water heaters, small boilers and process heaters in June 2024 to address the nation's worst smog, and comply with ozone standards under the federal Clean Air Act.

Compliance deadlines began taking effect on January 1, and the rule is expected to eliminate nearly 10% of emissions in the South Coast Air Basin, which includes large portions of Los Angeles, Orange, Riverside and San Bernardino counties.

The National Association of ‌Home Builders, and several California manufacturing, lodging and restaurant groups were among the entities challenging the rule.

Circuit Judge Lucy Koh wrote for a 2-1 majority that voiding the rule would amount to an implied repeal of the Clean Air Act, and opponents didn't show that Congress clearly intended such an outcome.

Koh also said the opponents didn't show the rule was unconstitutional in every respect, because process heaters are not covered by the Energy Policy and Conservation Act and the U.S. Department of Energy has not issued federal standards.

The lawsuit was failed as the appliance makers and groups argued that the local rule was illegally preempted by federal law.

However, the Circuit Judge Kenneth Lee dissented, saying the case was "strikingly similar" to a 2023 decision where the appeals court said federal law preempted a Berkeley, California ordinance banning natural gas infrastructure in new buildings.