D.C. Gas Ban Gets Favorable Hearing in Federal Appeals Court

A federal appeals court on Tuesday seemed supportive of Washington, D.C.'s ban on natural gas in new buildings, according to the case's material. The dispute centers around the Energy Policy and Conservation Act, or EPCA, which grants the Department of Energy the power to establish efficiency and energy use standards for household appliances like furnaces, water heaters, dryers, and stoves.

Opponents of D.C.'s Clean Buildings Act, including the National Association of Home Builders, Restaurant Law Center, National Apartment Association, Maryland Building Industry Association, Washington Gas, and two labor unions, argue that the city cannot enforce stricter standards than federal law allows for appliances. The law in D.C. mandates that certain newly constructed or substantially improved buildings must operate at zero energy beginning in 2027, effectively banning natural-gas appliances in these properties.

U.S. District Judge Ana Reyes ruled in March that the EPCA regulates energy consumption of appliances, not if a local government permits them in a particular building. During oral arguments on Tuesday, the D.C. Circuit panel appeared unconvinced by the industry groups' preemption argument, similar to another federal appeals court's decision in California.

The Ninth Circuit struck down Berkeley, California's natural-gas piping ban in 2024, stating that a city cannot circumvent EPCA by removing the fuel required to operate federally regulated appliances. Conversely, the Second Circuit upheld New York City and New York State's restrictions on fossil-fuel appliances in June, finding that EPCA preempts appliance energy-conservation standards but does not prohibit governments from prohibiting certain appliances entirely.

This case gives the D.C. Circuit the same statutory language and two conflicting appellate interpretations, potentially determining the fate of D.C.'s 2027 requirements. For builders, restaurants, and gas utilities, the outcome will depend on which interpretation prevails. For the natural gas industry, an unfavorable ruling would isolate Berkeley further, making gas appliance regulations dependent on the federal circuit where a building is located.