A divided federal appeals court on Thursday affirmed a ban on the manufacture, sale, and installation of certain gas appliances in four Los Angeles-area counties, dismissing industry arguments that the measure conflicts with federal law.
The 2-1 decision, made by the Ninth U.S. Circuit Court of Appeals, upheld the South Coast Air Quality Management District’s zero-emissions regulation for large water heaters, small boilers, and process heaters. The regulation, passed in June 2024, combats the nation’s worst smog and aims to achieve compliance with federal ozone standards under the Clean Air Act.
Circuit Judge Lucy Koh wrote for the majority that nothing in the text and history of the federal Energy Policy and Conservation Act suggested Congress sought to prevent states from regulating appliance emissions.
“Voiding the rule would amount to an implied repeal of the Clean Air Act,” Koh stated. She added that opponents failed to show the rule was unconstitutional, highlighting that process heaters, which are used in manufacturing and refining, fall outside the scope of the Energy Policy and Conservation Act.
Circuit Judge Kenneth Lee dissented, arguing the case was “strikingly similar” to the Berkeley decision in 2023, where federal preemption applied.
Berkeley’s ordinance banning natural gas hookups in new builds was rejected by the Ninth Circuit in 2023. The court determined federal law preempted the local rule for covered appliances.
“By its plain text and structure, [the federal act’s] preemption provision encompasses building codes that regulate natural gas use by covered products,” Judge Patrick Bumatay wrote in his opinion. “And by preventing such appliances from using natural gas, the new building code does exactly that.”
Among industry groups contesting the decision on the South Coast district’s rule were the National Association of Home Builders and California manufacturing, lodging, and restaurant organizations.
The district’s rule targets emissions of nitrogen oxides, key contributors to ground-level ozone.
In a related 2025 case, Southern California regulators dismissed a plan to transition away from gas-powered furnaces and water heaters, noting high costs for homeowners, burdens on the electrical grid, and impacts on disadvantaged residents.
“I, like everybody here, supports clean air,” said Orange County Supervisor Janet Nguyen, who opposed the regulations. “But we must also pursue environmental progress without punishing the very people we serve today. … I think this mandate hits really hard for disadvantaged and fixed-income residents.”
U.S. Attorney Bill Essayli also opposed the plan.
“California regulators are on notice: If you pass illegal bans or penalties on gas appliances, we’ll see you in court,” Essayli, a former California state assemblyman, posted on social media platform X. “The law is clear—feds set energy policy, not unelected climate bureaucrats.”
Reuters contributed to this report.
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