{"id":24674,"date":"2025-03-27T09:25:14","date_gmt":"2025-03-27T14:25:14","guid":{"rendered":"https:\/\/blogs.law.columbia.edu\/climatechange\/?p=24674"},"modified":"2025-04-01T13:53:56","modified_gmt":"2025-04-01T18:53:56","slug":"new-york-citys-building-electrification-law-wins-in-district-court","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2025\/03\/27\/new-york-citys-building-electrification-law-wins-in-district-court\/","title":{"rendered":"New York City\u2019s Building Electrification Law Wins in District Court"},"content":{"rendered":"
<\/div>

Last week, building electrification secured an important victory in the United States District Court for the Southern District of New York. In Association of Contracting Plumbers of The City of New York, Inc. et al v. City of New York<\/em><\/a>, plumbing and building trade groups challenged New York City\u2019s Local Law 154 of 2021<\/a>, a piece of legislation that prohibits fossil fuel combustion in most new buildings. Similar to other challenges against local \u2018natural gas bans,\u2019 the plaintiffs in this 2023 lawsuit argued that the federal Energy Policy and Conservation Act<\/a> (EPCA) \u00a0preempted Local Law 154. EPCA sets federal energy-efficiency standards for certain appliances, such as refrigerators, furnaces, ranges, and ovens. The Act includes a provision that preempts state and local governments from setting standards \u201cconcerning the energy efficiency, energy use, or water use of\u201d products regulated by EPCA. On March 18, 2025, Judge Ronnie Abrams dismissed the lawsuit with prejudice<\/a>, penning an opinion that upholds Local Law 154 as a valid exercise of local authority beyond the purview of EPCA\u2019s preemption clause.<\/p>\n

This blog post discusses Local Law 154, unpacks Judge Abrams\u2019 decision, and ends with a refresher on California Restaurant Association v. City of Berkeley <\/em>(Berkeley<\/em>). In Berkeley<\/em>, a panel for the U.S. Court of Appeals, Ninth Circuit, held that EPCA preempted a Berkeley ordinance that prohibited natural gas piping in new buildings.\"\"<\/a><\/p>\n

Judge Abrams\u2019 Decision in Association of Contracting Plumbers of The City of New York, Inc. et al v. City of New York<\/em><\/strong><\/p>\n

Judge Abrams\u2019 decision granting New York City\u2019s Motion to Dismiss in this case zeroes in on the definitional limits of EPCA\u2019s preemption clause to conclude that the plaintiffs\u2019 reasoning cannot reach Local Law 154. The difference between Local Law 154 and Berkeley\u2019s ordinance also plays a key role in Judge Abrams\u2019 opinion. New York City\u2019s Local Law 154 diverges from the ordinance that was at issue in the Berkeley <\/em>case. Instead of a wholesale prohibition on natural gas piping, Local Law 154 sets indoor air emissions limits<\/a> for fossil fuel combustion in new building construction, prohibiting the burning of \u201cany substance that emits 25 kilograms or more of carbon dioxide per million British thermal units of energy.\u201d This indirectly prohibits the installation of natural gas appliances, compelling developers to install appliances like induction burners and heat pumps<\/a>. In general, the limits went into effect in 2024 for buildings under seven stories; for buildings over seven stories, the limits begin in 2027.<\/p>\n

Mimicking Berkeley<\/em>, the plaintiffs in the New York City case argued that Local Law 154 is expressly preempted by EPCA because the law \u201c\u2018concerns\u2019 the \u2018energy use\u2019 of covered products, in that it \u2018ban[s] an appliance from using any energy[,] . . . thus setting its maximum energy use to zero.\u201d To determine whether EPCA preempts Local Law 154, the Court considered (1) the meaning of \u201cenergy use,\u201d and (2) whether Local Law 154 \u201cconcern[s]\u201d energy use within the meaning of EPCA.<\/p>\n

As to the first issue, the Court concluded that \u201cenergy use\u201d means a \u201cfixed value, determined using administratively prescribed procedures . . . that represents the amount of energy a product consumes under typical conditions.\u201d In so finding, the Court declined to adopt the definition employed by the Ninth Circuit in Berkeley<\/em>, which the Court noted, \u201cfocused on a flawed reading of the term \u2018point of use.\u2019\u201d Instead, Judge Abrams agreed with the Ninth Circuit dissent\u2019s interpretation of \u201cenergy use\u201d as a performance standard and that the term \u201cpoint of use\u201d does not create an absolute consumer right to use covered products.<\/p>\n

Recognizing \u201cenergy use\u201d as a fixed value, the Court briefly discussed the definition of \u201crelated to\u201d and \u201cconcerning.\u201d Judge Abrams reasoned that these terms must be understood in the context of EPCA\u2019s structure and intent\u2014focusing on appliance performance rather than fuel choices\u2014and determined that Local Law 154 does not \u201cconcern\u201d the subject matter of EPCA. EPCA sets energy conservation standards for covered products, and it requires that those products be tested for compliance with such standards and labeled accordingly. The Court viewed this structure as evidence that Congress intended to preempt state regulations that \u201cbear on the performance of a [covered] product as manufactured.\u201d In other words, EPCA\u2019s text and structure clearly intended to avoid \u201ca patchwork of conflicting and unpredictable\u201d regulations. Local Law 154, however, is not connected to EPCA because it does not \u201cfocus[] on\u201d the performance standards applicable to products. Instead, it indirectly regulates \u201cthe type of fuel that a covered product may consume in certain settings, irrespective of that product\u2019s energy efficiency or use.\u201d In this way, the law does not cause a covered appliance\u2019s energy use to go to zero, as the panel in Berkeley <\/em>determined. It just limits the types of fuel a covered product may consume in new buildings.<\/p>\n

Local Law 154\u2019s regulation of certain types of fuels in buildings is not an unusual overreach of municipal government either, Judge Abrams noted, but an integral part of state and municipal authority. Additionally, while manufacturers of covered products may see a decrease in demand for such products, they are still subject to the same national standards, further supporting the view that Local Law 154 is \u201cnot the kind of burdensome state . . . regulation Congress sought to preempt\u201d and does \u201cnot impose performance standards by proxy.\u201d<\/p>\n

This decision is the first to openly disagree with the Ninth Circuit\u2019s ruling in Berkeley<\/em>, a decision that produced a notable chilling effect on similar local laws being considered across the country. Now, with improved legal support, local governments may be more empowered to reconsider those building decarbonization ordinances.<\/p>\n

California Restaurant Association v. City of Berkeley<\/em><\/strong><\/p>\n

In 2019, the City of Berkeley, California passed a law banning the installation of gas infrastructure in newly constructed buildings. This \u2018natural gas ban\u2019 was the first local ordinance in the country to effectively require all-electric construction of new buildings. A trade group first challenged the law in the U.S. District Court for the Northern District of California, which ruled<\/a> that EPCA did not preempt Berkley\u2019s ordinance.<\/p>\n

In reversing<\/a> the District Court\u2019s Decision on April 17, 2023, the Ninth Circuit held that EPCA preempts state and local standards that interfere with \u201cthe end-user\u2019s ability to\u00a0use<\/em>\u00a0installed covered products at their intended final destinations\u201d (emphasis in original).\u00a0In other words, the Ninth Circuit ruled that Berkeley\u2019s ordinance was preempted because it \u201cconcern[ed] . . . energy use\u201d by reducing \u201cenergy use\u201d to zero for the appliances effectively prohibited by the ban. As noted in our blog post on the decision<\/a>, this ruling contrasted with the District Court, which concluded that EPCA preemption should be interpreted as limited in order to avoid \u201csweep[ing] into areas that are historically the province of state and local regulation.\u201d<\/p>\n

Berkeley\u2019s<\/em> holding is binding authority in courts located within the Ninth Circuit<\/a>, but in states within different circuits, the ruling is only persuasive authority. Local Law 154 passed before the Berkeley <\/em>decision, and because New York sits within the Second Circuit, Berkeley\u2019s <\/em>holding did not automatically apply. The plaintiffs challenging Local Law 154 used the same arguments that were successful in the Ninth Circuit to assert that the law is federally preempted. As discussed above, those arguments were dismissed at the District Court level.<\/p>\n

Conclusion<\/strong><\/p>\n

With this legal win, New York City can continue implementing Local Law 154, which, along with other laws like Local Law 97, puts the City in a better position to reach its climate goals and improve its air quality. More broadly, this decision demonstrates that building decarbonization laws that focus on performance standards rather than outright bans are on strong legal footing, especially when considered alongside other successful local performance-based building decarbonization laws. Local governments aiming to lower their emissions from buildings\u2013 who might have been reluctant to take on the subject matter due to Berkeley\u2019s<\/em> outcome \u2013 may look to Local Law 154 as a legally defensible approach to building decarbonization. The plaintiffs have stated<\/a> that they will appeal to the U.S. Court of Appeals, Second Circuit. Importantly, Judge Abrams\u2019 concluding opposite to that of the Ninth Circuit panel in Berkeley<\/em> sets up a potential circuit split on EPCA interpretation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week, building electrification secured an important victory in the United States District Court for the Southern District of New York. In Association of Contracting Plumbers of The City of New York, Inc. et al v. City of New York, plumbing and building trade groups challenged New York City\u2019s Local Law 154 of 2021, a […]<\/p>\n","protected":false},"author":3422,"featured_media":24689,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[68402,5673,69737],"tags":[65723,65711,65696,9434,9430,68404],"class_list":{"0":"post-24674","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cities","8":"category-litigation","9":"category-preemption","10":"tag-buildings","11":"tag-cities-climate-law-initiative","12":"tag-climate-litigation","13":"tag-energy-efficiency","14":"tag-litigation","15":"tag-preemption","16":"czr-hentry"},"yoast_head":"\nNew York City\u2019s Building Electrification Law Wins in District Court - Climate Law Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.law.columbia.edu\/climatechange\/2025\/03\/27\/new-york-citys-building-electrification-law-wins-in-district-court\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York City\u2019s Building Electrification Law Wins in District Court - Climate Law Blog\" \/>\n<meta property=\"og:description\" content=\"Last week, building electrification secured an important victory in the United States District Court for the Southern District of New York. 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