New York Gas Ban Upheld by U.S. Court of Appeals

The U.S. Court of Appeals for the Second Circuit ruled on June 30 to uphold the New York gas ban (All-Electric Building Act), which bans gas appliances in most new buildings in the state. The decision confirmed that state and local electrification mandates are not preempted by federal law.

This conflicts with the Ninth Circuit’s earlier decision on the same question. The National Propane Gas Association (NPGA) and its coalition appealed on the basis that the federal Energy Policy and Conservation Act (EPCA) preempts state regulations on gas and electric appliances. They argued the laws “effectively set covered gas appliances’ maximum energy use to zero.”

“I’m deeply disappointed with this decision,” said Stephen Kaminski, NPGA president and CEO. “Consumers across New York deserve access to clean, reliable and affordable energy, along with the freedom to choose the energy source that best meets the needs of their families. We believe this decision misinterprets the scope of EPCA’s federal preemption provisions and, if allowed to stand, will limit the energy choices available to future homeowners and businesses constructing new buildings across New York. The consequences will be felt most acutely in upstate and other rural communities, where reliable heating and hot water are essential during sub-zero winter conditions.”

NPGA is consulting with legal counsel on the potential for further appellate review and evaluating all available options to continue fighting against the ban. Earlier this year, the New York Secretary of State’s office made an agreement with NPGA to pause the ban — originally set to go into effect on Jan. 1 — until all available appeals have been exhausted. This gives NPGA’s coalition time to examine next steps in the fight for energy choice in the state.

“We remain committed to challenging unlawful gas bans through the courts while advancing legislative, regulatory and grassroots advocacy efforts nationwide to protect consumer energy choice,” NPGA said in a statement in The Bobtail, the association’s weekly newsletter.

The original ban was set for two phases. The first phase would have banned fossil fuel heating and appliances in buildings under eight stories (with some exceptions) starting Jan. 1, 2026. The second phase would have gone into effect Jan. 1, 2029, expanding to buildings of any height or size.

Though the two phases included exemptions for hospitals, farms, manufacturing facilities and restaurants, they presented concerns for energy reliability in a state already prone to blackouts. With the current extreme heat affecting New York citizens and threatening the strength of the power grid, the state could see power shortages in the winter without the assistance of gas appliances in new buildings.