By Bradford White Corporation
As we all celebrate the New Year, many of the issues that will likely impact the space and water heating industry continue to wait to be decided in court rooms across the United States. In New York State and Washington State, there are two important matters in particular that are scheduled to be determined by the judiciary this year.
First, in Mulhern Gas Co. v. Mosley, a coalition of contractors, gas industry associations, and others are filing suits against both New York State and New York City. Each jurisdiction has approved policies that would effectively ban the use of natural gas in most new buildings in the city and state. The lawsuit alleges that such actions are in violation of federal law, specifically the Energy Policy and Conservation Act (EPCA). EPCA contains a provision that prohibits state and local authorities from enacting measures effecting the energy use of federally regulated products, such as gas-fired boilers and water heaters.
While the United States Court for the Northern District of New York has previously upheld the city and state laws, this decision has been appealed by the coalition to the United States Court of Appeals for the Second Circuit. The court case’s path is a familiar one.
In 2019, the California Restaurant Association (CRA) challenged a similar natural gas ban policy enacted by the City of Berkeley. In that case, CRA v. Berkeley, the natural gas ban was also upheld in District Court, only to be overturned later by the United States Court of Appeals for the Ninth Circuit, which has limited jurisdiction to the Western United States in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington. It remains to be seen if the Mulhern case will have similar success in Circuit Court.
Meanwhile, across the country in the Pacific Northwest, another court case related to the future use of natural gas in Washington State is being considered in the Washington State Supreme Court. In 2024, voters in the state narrowly approved of Ballot Initiative 2066 (I-2066). Placing the measure on the ballot was a response to state and local building codes that prohibited the use of natural gas in most new buildings. I-2066, among other provisions, sought to prevent state or local governments from restricting access to natural gas.
Despite I-2066’s passage on the ballot, a lawsuit was soon filed by environmental lobbyists to challenge the measure’s content. Washington State has, what is colloquially known, as an anti-logrolling provision in their statute relative to ballot measures. This language prevents a proposal from encompassing too many issues into one ballot item, as this risks confusing voters. It was therefore alleged in Climate Solutions et al. v. State of Washington that I-2066 violated the anti-logrolling statute and was therefore null and void.
On September 3, 2025, the King County Superior Court affirmed the position of the environmental lobbyists and held that I-2066 had indeed violated the state’s anti-logrolling provision. Those opposed to this finding, and in support of I-2066 remaining in effect, led by the Building Industry Association of Washington, spent little time appealing this decision to the State Supreme Court, which has agreed to hear the case with oral arguments scheduled for later this month.
It is unclear as to when courts in either the Mulhern or Climate Solutions cases may ultimately hand down a ruling next. However, it seems likely that we can expect these decisions at some point during this calendar year. These decisions, in conjunction with the previously decided CRA v. Berkeley case, will no doubt have a significant impact on future efforts from state and local governments to ban, or restrict, the use of natural gas in appliances.
In the meantime, if you have any questions about this matter, or any others related to government and regulatory affairs in our industry, BWC’s Government and Regulatory Affairs team would like to speak with you. Also, if you know of any legislative or regulatory activity in your community or state that would impact our industry, please do not hesitate to contact us at BWCGovReg@bradfordwhite.com.
