DOJ Challenges a New Jersey Gas Ban as Industry Raises Concerns

The U.S. Department of Justice (DOJ) has filed a lawsuit in which the DOJ challenges a New Jersey gas ban, targeting a township ordinance restricting the use of natural gas, propane and fuel oil in certain new construction, citing concerns over federal preemption and consumer access to energy options.

According to the DOJ, the ordinance conflicts with the federal Energy Policy and Conservation Act, which establishes national standards for energy use in appliances and limits the ability of state and local governments to regulate those products. The department argues that the law preempts local policies that effectively prohibit certain types of energy infrastructure or appliances.

Assistant Attorney General Brett Shumate said the case reflects the department’s position on maintaining consistency in federal energy policy and protecting consumer choice.

“Congress preempted local efforts to outlaw gas stoves and other appliances Americans count on and prefer. This case is about upholding that choice,” Shumate said.

Principal Deputy Assistant Attorney General Adam Gustafson added that the DOJ will continue to challenge policies that it believes exceed local authority.

“Where the federal government has exclusive authority to regulate appliances and infrastructure, we will fight state and local overreach,” Gustafson said.

The National Propane Gas Association said in its coverage of the case that the DOJ’s action underscores ongoing concerns within the propane industry about maintaining access to multiple energy options.

“NPGA has long raised concerns about local fuel bans and has been in regular communication with the DOJ for months, outlining the legal and practical problems these ordinances create as well as helping identify local laws in conflict with federal law.

The outcome of the case could have implications beyond New Jersey, particularly as policymakers, industry stakeholders and regulators continue to evaluate the role of different energy sources in meeting environmental goals while ensuring reliability and affordability.

“NPGA welcomes this filing and looks forward to continuing to support challenges to gas bans and our industry wherever they emerge.”

Industry participants are expected to closely monitor the case as it proceeds, given its potential to influence future legal interpretations of federal authority and local energy regulations.