NAHB, Other Groups File Suit Against Southern California Gas Bans
NAHB and nine other business and housing groups seeking to overturn a regulation that would ban gas appliances have filed a lawsuit against Southern California air regulators.
In their complaint filed in the U.S. District Court for the Central District of California, the groups contended that South Coast Air Quality Management District’s (SCAQMD) regulation violates the Energy Policy and Conservation Act (EPCA) of 1975.
NAHB and the other plaintiffs argued that SCAQMD’s effective ban on certain gas appliances will harm their members.
“Plaintiffs face significant costs in having to replace gas appliances with electric appliances in existing buildings, which may also necessitate building modifications, disrupt business operations, or require the temporary relocation of tenants,” the lawsuit stated. “The increased cost of retrofitting or building for electric appliances will raise the cost of housing and limit supply. Plaintiffs also have members that include plumbers and pipefitters who will see a decrease in the amount of gas plumbing work, affecting their hours, job opportunities, and hiring and training in the industry. In short, the District’s rule will impose enormous financial costs and disruption on businesses and individuals, including Plaintiffs.”
The lawsuit seeks to void the SCAQMD’s rule to ban certain gas appliances because it is pre-empted by federal law since it concerns the energy use of appliances covered by the EPCA. The suit cites an appellate court decision last year that stated the city of Berkeley’s ban on natural gas connections in new construction was prohibited by the EPCA, which forbids state and local governments from setting efficiency standards for appliances.
Therefore, the lawsuit asserts that SCAQMD’s regulation is “void and unenforceable.”
Latest from NAHBNow
As the housing industry faces a severe labor shortage, NAHB members report that increased immigration enforcement and jobsite raids are heightening worker fears and further straining the construction labor pool.
NAHB Chairman Bill Owens was on the National Mall in Washington, D.C., yesterday to help open the 2026 Innovative Housing Showcase, an annual event presented by the U.S. Department of Housing and Urban Development (HUD).
Latest Economic News
Total tax revenue collected by state and local governments was up 5.8% from a year ago in the second quarter, according to the Quarterly Summary of State and Local Government Tax Revenue published by the U.S. Census Bureau. This was the highest year-over-year growth since the third quarter of 2024 (7.2%).
New home sales improved in August, but the monthly gain masked continued weakness in the broader new-home market. Elevated mortgage rates and ongoing affordability challenges continue to constrain demand, with new home sales remaining below last year’s pace and year-to-date sales lower than in 2025.
Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. In 2024, around 103 million Americans were ages 55 or older, ranging from adults still in the labor force to retirees.