By Jonathan Stempel

A divided federal appeals court on Thursday upheld a ban covering four Los Angeles-area counties on the manufacture, sale and installation of various appliances that emit nitrous oxides, rejecting claims by appliance makers and trade groups that the pollution control measure conflicted with federal law.

  • In a 2-1 decision, the 9th U.S. Circuit Court of Appeals in Pasadena, California, said nothing in the text and history of the federal Energy Policy and Conservation Act suggested that Congress intended to block states from using reasonable means to regulate appliance emissions.

  • The South Coast Air Quality Management District passed the zero-emissions rule for large water heaters, small boilers and process heaters in June 2024 to address the nation's worst smog, and comply with ozone standards under the federal Clean Air Act.

  • Compliance deadlines began taking effect on January 1, and the rule is expected to eliminate nearly 10% of emissions in the South Coast Air Basin, which includes large portions of Los Angeles, Orange, Riverside and San Bernardino counties.

  • The National Association of Home Builders and several California manufacturing, lodging and restaurant groups were among the entities challenging the rule.

  • Circuit Judge Lucy Koh wrote for the majority that voiding the rule would amount to an implied repeal of the Clean Air Act, which opponents did not show Congress clearly intended.

  • Koh also said the opponents did not show the rule was unconstitutional in every respect, because process heaters are not covered by the Energy Policy and Conservation Act and the U.S. Department of Energy has not issued federal standards.

  • Circuit Judge Kenneth Lee dissented, saying the case was "strikingly similar" to an earlier decision where the appeals court said federal law preempted a Berkeley, California, ordinance banning natural gas infrastructure in new buildings.

  • Koh said that "very narrow" decision did not address whether the energy policy law preempted state regulations enacted pursuant to the Clean Air Act.

  • A lawyer for the ban's opponents said they are evaluating their next steps.

  • Barbara Baird, a lawyer for the South Coast Air Quality Management District, said the decision respects Congress' intent to preserve uniform energy conservation standards, while letting agencies implementing the Clean Air Act "do what is necessary to protect public health."