NAHB, Other Groups File Suit Against Southern California Gas Bans

Legal
Published

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.”

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Advocacy

Jun 16, 2026

Podcast: How Missing Middle Housing Can Help Close Affordability Gap

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez are joined by NAHB member Justin Wood, a West Coast builder, to discuss how he is navigating the current market in Oregon and Washington state, and what solutions have been successful.

Economics

Jun 16, 2026

May Housing Starts Fall as Multifamily Construction Slows Sharply

Overall housing starts decreased 15.4% in May to a seasonally adjusted annual rate of 1.18 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

View all

Latest Economic News

Economics

Jun 16, 2026

Housing Starts Weaken in May as Multifamily Construction Slows

Housing starts fell sharply in May, driven by a steep drop in multifamily construction. Meanwhile, single-family buildings also slipped amid high interest rates, rising construction costs and ongoing labor shortages.

Economics

Jun 15, 2026

Builder Sentiment Remains Weak Amid Affordability Concerns

Builder sentiment remains subdued as rising material costs, elevated mortgage rates and ongoing affordability challenges continue to strain the housing market.

Economics

Jun 12, 2026

Single-Family Permits Continue to Decline Through April as Multifamily Activity Strengthens

Through April 2026, residential construction activity remained uneven across housing sectors. Single-family permitting continued to soften compared with a year ago, reflecting persistent affordability challenges and elevated borrowing costs, while multifamily permitting posted solid gains supported by stronger activity in several regions.