Rinnai America Corp. v. South Coast Air Quality Management District

The federal district court for the Central District of California ruled that the Energy Policy and Conservation Act did not preempt the South Coast Air Quality Management District’s rule setting a zero-nitrogen oxide (NOx) emission standard for certain categories of natural gas appliances. Although the court agreed with the plaintiffs that the rule would effectively ban use of covered gas-fueled boilers and water heaters, the court concluded that because the rule concerned pollution emitted by the appliances, and not how much energy they use, it was outside the scope of the Ninth Circuit’s <a href="https://climatecasechart.com/case/california-restaurant-association-v-city-of-berkeley/">holding</a> that EPCA preempted the City of Berkeley’s ordinance prohibiting installation of natural gas piping in new buildings.

A lawsuit filed in the federal district court for the Central District of California sought to enjoin a South Coast Air Quality Management District (SCAQMD) rule that phased in zero-emission limits for nitrogen oxides (NOx) from certain water heaters, boilers, and process heaters. The plaintiffs—which included manufacturers of natural gas appliances; building, manufacturing, real estate, lodging, and restaurant industry groups; and a labor organization—asserted that the federal Energy Policy and Conservation Act preempted the rule and asked the court to enjoin the defendant from enforcing or attempting to enforce the rule’s emissions limits. The California Air Resources board identified zero-emission standards for appliances as a component of the 2022 Scoping Plan for Achieving Carbon Neutrality and mentioned SCAQMD’s proposal for zero-emission NOx limits for space and water heating.