Court Upholds Limits on Commercial Gas Appliances in Four Southern California Counties

The 9th Circuit Court of Appeals last week upheld restrictions on the sale of certain commercial and industrial gas appliances in four Southern California counties. The 2-1 decision allows the South Coast Air Quality Management District to proceed with rules adopted in 2024 that target greenhouse gas emissions and pollution.

The restrictions apply to roughly 1.3 million water heaters and industrial boilers in Los Angeles, Orange, Riverside and San Bernardino counties.

The air board had earlier this year dropped plans to extend the same limits to residential appliances. Noah Rott, deputy press secretary at the Sierra Club, said the rule will avoid over 2,800 early deaths, 11,800 cases of asthma and 300,000 lost work and school days when fully implemented, producing more than $95 billion in health benefits.

Opponents had argued the rules violated the Energy Policy and Conservation Act and would raise appliance costs while limiting choices.

The court rejected those claims, holding that the district retained authority under the Clean Air Act. Circuit Judge Lucy Koh wrote for the majority that Congress had not indicated any intent to block the federal-state framework for air quality standards.

“If Congress wanted to interfere with the system of federal-state collaboration set up by the (Clean Air Act), impede upon the EPA’s statutory authority to protect the public’s health and welfare, or restrict states’ ability to comply with federal air quality standards, one would expect Congress to have said so.

But Congress said nothing,” Koh stated.