D.C. Gas Ban Gets Favorable Appeals Court Hearing

A federal appeals panel appeared inclined Tuesday to let Washington, D.C.’s restrictions on natural gas in certain new buildings stand, according to a report from OilPrice.com. The case is part of a deepening national legal split over similar bans, creating regulatory uncertainty that could impact long-term demand for natural gas produced in regions like the Bakken.

The legal challenge, brought by industry groups including the National Association of Home Builders, Restaurant Law Center, and Washington Gas, argues that D.C.'s Clean Buildings Act is preempted by federal law. The law requires certain newly constructed or substantially improved buildings to operate at zero energy beginning in 2027, effectively prohibiting natural-gas appliances in covered properties. U.S. District Judge Ana Reyes upheld the law in March, a ruling now under appeal.

During oral arguments Tuesday at the D.C. Circuit Court of Appeals, the panel appeared unconvinced by the industry groups' preemption argument, OilPrice.com reported. The case turns on the Energy Policy and Conservation Act (EPCA), which gives the Department of Energy authority to set efficiency standards for appliances. The central question is whether EPCA prevents local governments from banning the installation of those appliances altogether.

Federal appeals courts are already split on this issue. The Ninth Circuit struck down Berkeley, California’s natural-gas piping ban in 2024, a ruling that covers nine Western states. Conversely, the Second Circuit upheld New York City and New York State restrictions on fossil-fuel appliances in June. The D.C. Circuit's upcoming decision will add a third interpretation, with significant implications.

For the natural gas industry, a ruling against preemption from the influential D.C. Circuit would leave the Berkeley decision "increasingly isolated," according to the OilPrice.com analysis. The outcome would make gas appliance rules dependent on which federal circuit a building is located in, creating a patchwork of regulations. This legal uncertainty poses a strategic challenge for producers by potentially chilling demand in major metropolitan markets that are adopting building electrification policies.

While the case directly concerns building codes in Washington, D.C., the precedent and ongoing judicial conflict are closely watched by Bakken operators and midstream companies. North Dakota is a major natural gas producer, and sustained demand from the residential and commercial building sectors is a key component of the market. A growing trend of similar local bans, if upheld in various circuits, could signal a gradual, jurisdiction-by-jurisdiction erosion of a key demand segment over the long term, affecting planning and investment in the gas-producing regions of the Williston Basin.