Description: Across the country, many cities and states are taking steps to address the harms of natural gas emissions within and from buildings. Some actions are intended to reduce emissions while others aim to eliminate usage of natural gas entirely. These efforts have occasionally been met with resistance from industry groups and, in some cases, have been set back by court rulings. However, both existing and novel regulatory approaches are still effective in addressing the significant impact of natural gas use in buildings. Some regulatory approaches include:

• Establishing carbon emissions limits for buildings.
• Updating building energy codes to require increased levels of building energy efficiency.
• Regulating sources of air pollution that pose public health risks.
• Revising local rules about gas distribution lines.

Background: Natural gas use within buildings is known to produce harmful emissions that affect human health and the environment. Direct emissions include unburned methane, carbon dioxide, and nitrogen oxides. Indirect emissions (primarily leaked natural gas) arise from leaks at gas wells and from piping distribution networks between well heads and the point of use. In Chicago, the energy demands of buildings are estimated to account for 68% of all carbon emissions in the city. In New York City, buildings are estimated to produce more than two-thirds of the city’s emissions. In Berkeley, California, prohibiting use of natural gas in new buildings for climate, health, and safety reasons has been an explicit priority of the City Council since 2016.

The Building Decarbonization Coalition maintains a listing of jurisdictions in the United States that have adopted ordinances prohibiting or discouraging methane infrastructure in some or all new buildings (see link below). As of August 2024, 143 jurisdictions in 12 states have taken action to decarbonize buildings within their respective jurisdictions. Of these jurisdictions, 96 have adopted ordinances requiring all-electric construction in new or remodeled buildings. This listing does not identify those jurisdictions (such as Berkeley) that have repealed their ordinance as a result of a legal challenge.

Legal Challenges:

Berkeley, California – police power to protect public health and safety:

Berkeley became the first U.S. city to prohibit natural gas infrastructure in new buildings in 2019 with Ordinance 7672-NS. Unfortunately, the ordinance was short-lived.

The California Restaurant Association (CRA) sued the City of Berkeley to prevent the gas ban ordinance from going into effect. In CRA v. Berkeley, the Ninth Circuit Court of Appeals ruled against the ordinance. The Ninth Circuit found that the Energy Policy and Conservation Act (EPCA) preemption provision encompassed building code ordinances that, by banning gas infrastructure, would prevent the use of natural gas appliances explicitly approved for use by EPCA. Quoting the Ninth Circuit’s ruling, the Columbia University’s Sabin Center for Climate Change Law published an April 2023 article (linked below) describing the court’s rationale as follows: “…the Ninth Circuit held that EPCA preempts state and local standards that interfere with “the end-user’s ability to use installed covered products at their intended final destinations” (emphasis in original).” However, the Ninth Circuit’s ruling was narrow, leaving the door open to other approaches to building decarbonization. For example, details of the ruling in CRA v. Berkeley suggest natural gas use in buildings can be reduced by restricting the distribution of natural gas from utilities. Washington State has already begun making efforts to this end (see below).

Despite the Ninth Circuit Court’s ruling, environmental activists in Berkeley have not given up. A November 2024 a ballot measure will determine the fate of a proposed tax on natural gas use in large buildings based on their natural gas consumption, with the revenue directed towards electrifying homes and buildings. While not a complete ban, such as measure would provide a significant incentive to decarbonize large buildings in Berkeley. See the linked article below: Berkeley’s Gas Ban Was Blocked in Court. Now a New Plan Has Emerged. Berkeley’s Ballot Measure Text is also linked below.

A note should be made about the plaintiff group in CRA v. Berkeley, the CRA. Bloomberg writer Ben Elgin published The Surprising Force Stalling Climate Progress: California Restaurants in March of 2024, detailing the history of restaurant groups working for corporate interests to the detriment of environmental and public health. In the 1980s, restaurant groups–including the CRA–collaborated with the tobacco industry to oppose smoking bans. Similarly, in the fight against gas restrictions, the CRA’s actions hint at support from the gas industry. SoCalGas and San Diego Gas & Electric have contributed a combined $1.3 million to the CRA since 2019. Considering the fact that the United States natural gas system is consistently expanding–with an estimated one new customer per minute–and combustion of natural gas accounts for approximately 9% of California’s total emissions, providers have a clear interest in obstructing limits on their industry’s growth. Elgin outlines how restaurant associations, while presenting themselves as champions of small businesses, often have alliances with entities prioritizing corporate interests over public health and environmental concerns.

New York City, New York – carbon dioxide emission limits for buildings:

New York City faces legal challenges in reducing building-related carbon emissions.

Local Law 154 aims to reduce carbon dioxide emissions in new buildings. The law prohibits approval of applications for new buildings which emit more than 25kg of carbon dioxide per metric million British thermal units (Btu). This emissions limit effectively prohibits fossil fuel systems in both new buildings and renovation projects in New York City. LL154 is facing a federal challenge under the EPCA similar to that seen in CRA v. Berkeley.

Previously New York City adopted Local Law 97, which places carbon caps on most buildings in New York City larger than 25,000 square feet (See Commercial Building Deep Energy Retrofit in this Toolbox.). The law is expected to result in a 40% reduction in citywide emissions by 2030. LL97 is being challenged by a group of building owners in New York State court.

Pathways to Building Decarbonization:

Washington State – limiting natural gas distribution piping:

Washington passed House Bill 1589 in March of 2024. House Bill 1589 aims to reduce gas emissions from buildings by prohibiting natural gas companies that serve more than 500,000 retail natural gas customers from providing natural gas service to commercial or residential locations that did not receive or had not applied for gas service as of June 30, 2023. House Bill 1589 appears built to operate in the way the Ninth Circuit referenced as avoiding the EPCA, by focusing on restricting utilities rather than building codes.

Chicago, Illinois – limiting indoor emissions:

Chicago has introduced the Clean and Affordable Buildings Ordinance (CABO). CABO would eliminate natural gas emissions by setting an indoor emissions limit banning the combustion of fuels that emit more than 25kg of carbon dioxide per metric million British thermal units (Btu), effectively requiring all new construction to switch to clean power sources. A recent report found that 12,000 of Chicago’s citizens work in clean energy, more than double the number of fossil fuel workers. Chicago can be a case study for the positive economic impact of a shift to clean energy, with a study by the Natural Resources Defense Council (NRDC) suggesting that Chicago residents could save roughly $11,000 to $24,000 over a twenty year period by switching away from gas to fully electric infrastructure. As of this writing, CABO has yet to be passed by the Chicago City Council.

Denver, Colorado – energy use intensity reductions:

Denver has been moving away from natural gas consumption on multiple fronts since 2016 when Denver passed the Energize Denver Ordinance. The purpose of Energize Denver is to reduce greenhouse gas emissions from buildings. Energize Denver mandates that various building types make Energy Use Intensity (EUI) reductions by 2030. In order to help building owners calculate and reduce EUI, Denver recommends that building owners make use of the EPA administered Energy Star system.

Davis, California – higher levels of building energy efficiency for mixed-fuel buildings:

Section 8.01.092 of the Davis Municipal Code requires that new homes using “natural gas or propane as fuel for space heating, water heating (including pools and spas), cooking appliances, or clothes drying appliances or is plumbed for such equipment” meet specific energy efficiency standards. Single-family homes must meet a Total Energy Design Rating margin of 9.5, as defined by the California Energy Code; low-rise multifamily buildings must meet a slightly higher margin of 10. Both types of homes must also be built with or have the electrical service capacity to switch to all-electric appliances in the future, including electric heat-pump space heating/cooling, induction stove top and oven, clothes dryers, and heat-pump water heaters.

The Davis approach is consistent with an article published by the Sabin Center for Climate Change Law at Columbia Law School. The article (linked below) states the following: “One way to accomplish this [avoid EPCA preemption] is to effectively require builders to build either all-electric or with fossil fuels but to a more stringent efficiency standard.” The Davis approach, finalized four years prior to the Sabin Center article, appears (as of this writing) to be free of legal challenge.

In summary: While legal challenges persist, cities and states are making significant strides toward reducing natural gas use in buildings to combat climate change and protect public health. Through a combination of regulatory innovations, stricter emissions limits, and updated building codes, these efforts are paving the way for a transition to cleaner, more sustainable building energy consumption.

Goal: Reduce carbon and natural gas related emissions from buildings.