The U.S. Court of Appeals for the Second Circuit has affirmed two lower court decisions upholding bans on fossil-fueled appliances in New York City and New York State in new buildings.

Several trade associations and unions sued in two separate cases to stop the laws from going into effect, arguing that they are preempted under the Energy Policy and Conservation Act’s (“EPCA”) express preemption provision. But the appeals court ruled text of the preemption provision does not support appellants’ expansive construction of the statute.

The court held EPCA preempts energy conservation standards for covered appliances and a fairly limited realm of additional regulations which operate in a similar manner, and concluded the challenged laws fall outside of that realm.

The New York City law prohibits the use of appliances that run on natural gas, heating fuel, and other fossil fuels. The law has applied to new buildings under seven stories since January 1, 2024. It will expand its coverage to taller buildings in July 2027.

Similarly, New York State enacted a law directing the state Fire Prevention and Building Code Council, a body within New York’s Department of State, to adopt regulations prohibiting the installation of appliances that burn fossil fuels in new buildings.

The appeals court decision will likely be appealed to the U.S. Supreme Court.