Rinnai America Corporation v. South Coast Air Quality Management District
CourtCourt of Appeals for the Ninth Circuit
Date FiledJuly 2, 2026
Docket25-5129
StatusPublished
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Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
No. 25-5129
RINNAI AMERICA
CORPORATION; NORITZ
D.C. No.
AMERICA CORPORATION;
2:24-cv-10482-
NATIONAL ASSOCIATION OF
PA-PD
HOME BUILDERS; CALIFORNIA
STATE PIPE TRADES COUNCIL;
CALIFORNIA MANUFACTURERS
OPINION
& TECHNOLOGY ASSOCIATION;
CALIFORNIA RESTAURANT
ASSOCIATION; RESTAURANT
LAW CENTER; CALIFORNIANS
FOR HOMEOWNERSHIP, INC.;
CALIFORNIA HOTEL &
LODGING ASSOCIATION;
CALIFORNIA APARTMENT
ASSOCIATION; PLUMBING-
HEATING-COOLING
CONTRACTORS OF
CALIFORNIA,
Plaintiffs - Appellants,
v.
SOUTH COAST AIR QUALITY
MANAGEMENT DISTRICT,
Defendant - Appellee,
2 RINNAI AMERICA CORP. V. SCAQMD
PEOPLE'S COLLECTIVE FOR
ENVIRONMENTAL JUSTICE;
SIERRA CLUB; INDUSTRIOUS
LABS,
Intervenor-Defendants -
Appellees.
Appeal from the United States District Court
for the Central District of California
Percy Anderson, District Judge, Presiding
Argued and Submitted February 5, 2026
Pasadena, California
Filed July 2, 2026
Before: Kenneth K. Lee, Lucy H. Koh, and Ana de Alba,
Circuit Judges.
Opinion by Judge Koh;
Dissent by Judge Lee
RINNAI AMERICA CORP. V. SCAQMD 3
SUMMARY *
Environmental Law
Affirming the district court’s grant of summary
judgment to South Coast Air Quality Management District
(“District”), the agency responsible for air pollution control
in the South Coast Air Basin (“Basin”), the panel held that
the Energy Policy and Conservation Act (“EPCA”) does not
preempt the District’s amended Rule 1146.2, which seeks to
achieve compliance with federal ozone standards under the
Clean Air Act (“CAA”). The Basin has the worst smog (or
ground-level ozone) in the country and is in “extreme”
nonattainment with all federal ozone standards and thus risks
losing its federal highway funding and being assessed
substantial penalties. Since its creation in the 1970s, the
District has implemented rules regulating nitrous oxide
emissions from appliances and other stationary sources in an
effort to bring itself into compliance with the federal air
quality standards. Numerous other jurisdictions, including
Texas and Utah, have adopted similar nitrous oxide
emissions standards for appliances, and the EPA has
routinely approved these standards.
In 2022, the District determined that widespread
adoption of a zero emissions standard across all stationary
sources, including appliances, was the only viable way to
bring the Basin into compliance with federal ozone
standards. As a result, the District passed Rule 1146.2, which
over the next decade phases in zero nitrous oxide emission
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
4 RINNAI AMERICA CORP. V. SCAQMD
standards on certain appliances. The Bay Area enacted
similar appliance standards in March 2023, and to date, no
challenge to those standards has been filed.
The panel held that the District’s effort to comply with
the federal air quality standards under the CAA was not
preempted by EPCA, which was designed instead to
counteract the patchwork of energy efficiency standards for
appliances that existed in the 1980s. The panel held that
nothing in the text, structure, or history of EPCA suggested
that Congress intended to interfere with states’ ability to use
these well-established methods to achieve compliance with
federal air quality standards under the CAA. The plaintiffs
failed to identify any language in EPCA indicating
Congress’s intent to preempt CAA emissions regulations.
The panel held that California Restaurant Ass’n v. City of
Berkeley (“CRA”), 89 F.4th 1094 (9th Cir. 2024), explicitly
declined to address whether EPCA preempts state
regulations enacted pursuant to another federal statute and
repeatedly acknowledged that it was a “very narrow”
decision. Moreover, the named plaintiff California
Restaurant Association, which is also a plaintiff in the instant
case, explicitly conceded in CRA that “regulations of
nitrogen oxide emissions” do not “concern energy use” and
are not “barred by [CRA’s] interpretation of the EPCA.”
The panel further held that the plaintiffs’ facial challenge
failed because the District’s Rule 1146.2 regulates emissions
from process heaters, which are not among the list of
covered products under EPCA and for which the Department
of Energy has not issued any federal standards. Thus, the
plaintiffs failed to show that the Rule is unconstitutional in
every application.
RINNAI AMERICA CORP. V. SCAQMD 5
Dissenting, Judge Lee wrote that California Restaurant
Ass’n v. City of Berkeley controls this case. Just like in
California Restaurant Ass’n v. City of Berkeley, EPCA
preempts the District’s rule on nitrous oxide emissions
because it similarly regulates “energy use” of a “covered
product.”
COUNSEL
Brian C. Baran (argued), Reichman Jorgensen Lehman &
Feldberg LLP, Washington, D.C.; Courtland L. Reichman,
Reichman Jorgensen Lehman & Feldberg LLP, Redwood
Shores, California; Sarah O. Jorgensen, Reichman Jorgensen
Lehman & Feldberg LLP, Atlanta, Georgia; Sean M.
Kneafsey, Kneafsey Firm, Los Angeles, California; Luke
Dowling and John J. Davis Jr., McCracken Stemerman &
Holsberry LLP, Oakland, California; Angelo I. Amador,
Restaurant Law Center, Washington, D.C.; Matthew P.
Gelfand, Californians for Homeownership Inc., Sacramento,
California; for Plaintiffs-Appellants.
Matthew D. Zinn (argued), Ryan K. Gallagher, and Lauren
M. Tarpey, Shute Mihaly & Weinberger LLP, San
Francisco, California; Barbara Baird, Chief Deputy District
Counsel; Bayron T. Gilchrist, General Counsel; South Coast
Air Quality Management District, Diamond Bar, California;
for Defendant-Appellee.
Candice L. Youngblood and Adriano L. Martinez,
Earthjustice, Los Angeles, California; James A. Dennison,
Sierra Club, Boulder, Colorado; Sean H. Donahue, Donahue
Goldberg & Herzog, Washington, D.C.; for Intervenor-
Defendants-Appellees.
6 RINNAI AMERICA CORP. V. SCAQMD
Edward P. Sangster, Ankur K. Tohan and David Wang,
K&L Gates LLP, San Francisco, California, for Amicus
Curiae Navien, Inc..
J. Mark Little, Baker Botts LLP, Houston, Texas; Daniel
Rankin, Baker Botts LLP, Austin, Texas; Michael Murray,
American Gas Association, Washington, D.C.; for Amicus
Curiae American Gas Association.
Cara A. Horowitz, Brennon K. Mendez, and Tiffany
Deguzman, Frank G. Wells Environmental Law Clinic,
UCLA School of Law, Los Angeles, California, for Amicus
Curiae Northeast States for Coordinated Air Use
Management.
Daniel N. Carpenter-Gold, Esther Agbaje, and Mia M.
Hammersley, Public Health Law Center, St. Paul,
Minnesota, for Amicus Curiae Public Health Law Center.
Jonathan A. Wiener and Benjamin P. Lempert, Deputy
Attorneys General; Myung J. Park, Supervising Deputy
Attorney General; Annadel A. Almendras, Senior Assistant
Attorney General; Rob Bonta, California Attorney General;
Office of the California Attorney General, San Francisco,
California; for Amicus Curiae California Air Resources
Board.
RINNAI AMERICA CORP. V. SCAQMD 7
OPINION
KOH, Circuit Judge:
Defendant-Appellee South Coast Air Quality
Management District (the “District”) is the agency
responsible for air pollution control in the South Coast Air
Basin (the “Basin”), a region that includes large portions of
Los Angeles, Orange, Riverside, and San Bernardino
counties. The Basin has the worst smog, or ground-level
ozone, in the country and is in “extreme” nonattainment with
all federal ozone standards under the Clean Air Act
(“CAA”), 42 U.S.C. § 7401 et seq.
On June 7, 2024, after determining that widespread
adoption of zero emissions technology across all stationary
sources was the only viable way to bring the Basin into
compliance with federal ozone standards, the District
adopted amendments to Rule 1146.2 (“Rule 1146.2” or the
“Rule”). As amended, Rule 1146.2 phases in prohibitions on
the manufacture, sale, or installation of gas-fired water
heaters, boilers, and process heaters that emit more than zero
nitrous oxides (“NOx”). Plaintiffs-Appellants, who include
manufacturers of gas appliances and various industry
groups, filed suit challenging Rule 1146.2 on the grounds
that it is preempted by the Energy Policy and Conservation
Act (“EPCA”), 42 U.S.C. § 6201 et seq. The district court
granted summary judgment in favor of the District. We
affirm.
8 RINNAI AMERICA CORP. V. SCAQMD
I. BACKGROUND AND PROCEDURAL HISTORY
A. Regulatory Background
1. Clean Air Act
The regulation of air pollution has historically been a
matter of state authority. See Exxon Mobil Corp. v. E.P.A.,
217 F.3d 1246, 1255 (9th Cir. 2000) (“Air pollution
prevention falls under the broad police powers of the states,
which include the power to protect the health of citizens in
the state.”). Beginning in the 1950s, however, Congress
began enacting a series of laws gradually increasing federal
involvement in the prevention of air pollution. These early
federal efforts were focused primarily on funding research
and providing technical and financial assistance to the states.
See Train v. Nat. Res. Def. Council, Inc., 421 U.S. 60, 63-64
(1975) (discussing history of federal involvement). In 1963,
Congress passed the first iteration of the CAA, the Clean Air
Act of 1963, Pub. L. No. 88-206, 77 Stat. 392, which, in
addition to expanding federal research efforts and funding to
the states, authorized federal authorities “to intervene
directly to abate interstate pollution in limited
circumstances.” Train, 421 U.S. at 64.
The Air Quality Act of 1967, Pub. L. No. 90-148, 81
Stat. 485, marked the beginning of a shift towards greater
federal involvement in regulating air pollution. The 1967
Act required the Secretary of the Department of Health,
Education and Welfare to promulgate air quality criteria for
various regions across the United States. See Air Quality Act
of 1967 § 107(b). However, the 1967 Act “reiterated the
premise . . . ‘that the prevention and control of air pollution
at its source is the primary responsibility of States and local
governments.’” Train, 421 U.S. at 64 (quoting Air Quality
Act of 1967 § 101(a)(3)). Thus, the states “generally retained
RINNAI AMERICA CORP. V. SCAQMD 9
wide latitude to determine both the air quality standards
which they would meet and the period of time in which they
would do so.” Id.
The Air Quality Act of 1967 ultimately proved
ineffective at addressing the growing problem of air
pollution, in part due to the lack of sufficient federal
enforcement mechanisms. See id. In response, Congress
passed the Clean Air Amendments of 1970, Pub. L. No. 91-
604, 84 Stat. 1676, which created the modern federal air
pollution control program. See Train, 421 U.S. at 64. The
1970 amendments to the CAA “sharply increased federal
authority and responsibility in the continuing effort to
combat air pollution,” while at the same time preserving the
principle that “the primary responsibility for assuring air
quality” belonged with the states. Id. (quoting Clean Air
Amendments of 1970 § 107(a)).
The CAA aims to “promote reasonable Federal, State,
and local governmental actions . . . for pollution prevention.”
42 U.S.C. § 7401(c). 1 To achieve this goal, the CAA
outlines a framework of “federal-state collaboration.” Ohio
v. E.P.A., 603 U.S. 279, 283 (2024) (quoting EME Homer
City Generation, L.P. v. E.P.A., 795 F.3d 118, 124 (D.C. Cir.
2015)). The best known example of this federal-state
framework is the CAA’s provisions regarding National
Ambient Air Quality Standards (“NAAQS”). Under the
CAA, the U.S. Environmental Protection Agency (“EPA”)
is required to set standards for certain air pollutants as
necessary to protect the public health. § 7409(a)(1), (b)(1).
The EPA must also identify areas that have not attained these
federal standards (so-called “nonattainment” areas).
1
Hereinafter, all references to “§” refer to Title 42 of the United States
Code, unless otherwise indicated.
10 RINNAI AMERICA CORP. V. SCAQMD
§ 7407(d). States are then required to submit a State
Implementation Plan (“SIP”) for the “implementation,
maintenance, and enforcement” of the NAAQS in their
jurisdictions within a specified time period. § 7410(a)(1). In
crafting SIPs, states bear the “initial and primary
responsibility for deciding what emissions reductions will be
required from which sources.” Whitman v. Am. Trucking
Ass’ns, 531 U.S. 457, 470 (2001); see also § 7401(a)(3)
(stating that “air pollution prevention (that is, the reduction
or elimination, through any measures, of the amount of
pollutants produced or created at the source) and air
pollution control at its source is the primary responsibility
of States and local governments”).
Although the CAA gives states latitude in deciding how
best to curb emissions, it requires that nonattainment areas
implement “all reasonably available control measures as
expeditiously as practicable” or face certain penalties.
§§ 7502(c)(1), 7413. When prior versions of the CAA
proved ineffective at adequately controlling pollutants, 2
Congress amended the CAA in 1990, Pub. L. No. 101-549,
104 Stat. 2399, to provide more comprehensive regulation of
specific pollutants, including ozone and particulate matter,
and to increase the consequences for nonattainment. See S.
Coast Air Quality Mgmt. Dist. v. E.P.A., 472 F.3d 882, 887-
88 (D.C. Cir. 2006) (discussing 1990 amendments). The
1990 amendments created a new classification scheme for
nonattainment areas—ranked from “marginal” to “extreme,”
§ 7511(a)(1)—and strengthened enforcement measures
2
For example, in response to “widespread failure by the states to attain
NAAQS,” Congress amended the Clean Air Act in 1977 to allow the
states more time to attain NAAQS. Coal. for Clean Air v. S. Cal. Edison
Co., 971 F.2d 219, 222 (9th Cir. 1992).
RINNAI AMERICA CORP. V. SCAQMD 11
against the worst nonattainment areas, § 7511d. The
potential penalties faced by “extreme” nonattainment areas
include the imposition of large annual fees for every ton of
pollutant emitted over the baseline and the loss of federal
highway funding. §§ 7509(b), 7413, 7511d.
2. Energy Policy and Conservation Act
In 1975, five years after the passage of the Clean Air
Amendments of 1970, Congress passed EPCA. Enacted in
the aftermath of the oil embargo imposed against the United
States by certain countries in 1973 and 1974, “EPCA was
designed, in part, to reduce the United States’ ‘domestic
energy consumption through the operation of specific
voluntary and mandatory energy conservation programs.’”
Air Conditioning & Refrigeration Inst. v. Energy Res.
Conservation & Dev. Comm’n, 410 F.3d 492, 498-99 (9th
Cir. 2005) (quoting S. Rep. No. 94-516, at 117 (1975)).
When first enacted, EPCA was concerned primarily with
labeling on consumer appliances. Because “Congress
believed that better informed consumers and voluntary
efforts by manufacturers would make energy efficiency
standards unnecessary,” EPCA required that manufacturers
label appliances with measures of energy efficiency and
energy use and “provided that the Secretary of the Federal
Energy Administration should utilize energy efficiency
standards if the labeling program proved ineffective.” Id. at
499. In keeping with this focus on labeling, EPCA contained
a provision expressly preempting state regulations insofar as
“they were ‘other than’ the applicable federal rules for
testing and labeling.” Id. (quoting EPCA, Pub. L. No. 94-
163, § 327(a)(1), 89 Stat. 871, 927 (1975)).
In 1978, Congress amended EPCA to improve the
procedures for establishing national standards and to “ensure
12 RINNAI AMERICA CORP. V. SCAQMD
that efficiency improvements will be made expeditiously.”
Nat. Res. Def. Council, Inc. v. Herrington, 768 F.2d 1355,
1362 (D.C. Cir. 1985) (quoting H.R. Rep. No. 496, pt. 4
(1977)). The amended version of EPCA created “a
nationwide conservation program for appliances and
required the [Department of Energy (“DOE”)] to prescribe
minimum energy efficiency standards for thirteen covered
products.” Air Conditioning, 410 F.3d at 499.
The DOE, however, declined to promulgate any federal
standards and instead adopted a general policy of granting
preemption waivers to states. Id. This resulted in a
patchwork of different minimum energy efficiency
standards for the same appliances across the states, which
complicated appliance manufacturers’ “design, production
and marketing plans.” Id. at 500 (quoting S. Rep. No. 100-6,
at 4 (1987)). In response, manufacturer trade associations
negotiated with the Natural Resources Defense Council to
establish uniform national standards, which Congress later
enacted into law through the passage of the National
Appliance Energy Conservation Act of 1987. Id. at 499-500.
This 1987 law amended EPCA and broadened its preemption
provision “to counteract the systems of separate state
appliance standards that had emerged.” Id. at 500.
EPCA’s current preemption provision 3—the one at issue
in this case—states that, subject to various exceptions,
“effective on the effective date of an energy conservation
standard established in or prescribed under section 6295 of
this title for any covered product, no State regulation
concerning the energy efficiency, energy use, or water use
of such covered product shall be effective with respect to
3
The current version of this provision reflects minor amendments made
since 1987, none of which are relevant to this appeal.
RINNAI AMERICA CORP. V. SCAQMD 13
such product.” § 6297(c). EPCA defines “energy use” as
“the quantity of energy directly consumed by a consumer
product at point of use, determined in accordance with test
procedures under section 6293 of this title,” § 6291(4), and
defines “energy efficiency” as “the ratio of the useful output
of services from a consumer product to the energy use of
such product, determined in accordance with test procedures
under section 6293 of this title,” § 6291(5). “Energy,” in
turn, is defined as “electricity, or fossil fuels.” § 6291(3).
“Covered products” include consumer products such as
refrigerators, air conditioners, water heaters, furnaces, and
kitchen ovens. §§ 6291(1), 6292.
B. Factual Background
The South Coast Air Quality Management District is the
agency responsible for air pollution control for the South
Coast Air Basin (the “Basin”), an area that includes Orange
County and the urban portions of Los Angeles, Riverside,
and San Bernardino counties. More than 17 million people
live in the Basin. The Basin has the worst smog, or ground-
level ozone, in the country and is in “extreme”
nonattainment for all federal ozone pollution standards. See
40 C.F.R. § 81.305. Ground-level ozone forms when volatile
organic compounds interact with NOx in the atmosphere in
the presence of sunlight. Exposure to high levels of ozone
carries significant health risks, including asthma, chronic
bronchitis, emphysema, increased susceptibility to
respiratory infection, and premature death. In 2020, nine of
the country’s top ten locations most frequently exceeding the
2015 federal 8 hour ozone standard 4—as well as the location
4
In 2015, the EPA set the NAAQS for ozone at a daily maximum 8 hour
average of 70 parts per billion (“2015 federal 8 hour ozone standard”).
See 40 C.F.R. § 50.19.
14 RINNAI AMERICA CORP. V. SCAQMD
with the highest number of days over the 8 hour ozone
standard and the location with the single highest recorded
maximum 8 hour average ozone concentration—were all
located within the Basin.
Recognizing that the Basin faced “the most critical air
pollution problem in the nation,” the California legislature
established the District in 1976 to address the issue. 1976
Cal. Stat. 891, 893. Under California law, the District is
required to adopt and amend air quality management plans
to achieve and maintain federal and state ambient air quality
standards. See Cal. Health & Safety Code § 40460(a). These
plans are submitted to the EPA and serve as the federally
required SIP under the CAA. See id. § 40460(d).
Since its creation in the 1970s, the District has
implemented rules regulating NOx emissions from
appliances and other stationary sources. The District adopted
the first iteration of the challenged rule, Rule 1146.2, in
1998. Initially, Rule 1146.2 limited NOx emissions to 30
parts per million (“ppm”) on most covered appliances. The
Rule was subsequently amended in 2005, 2006, and 2018 to
cover a greater number of appliances and to further limit
emissions to 20 ppm for most covered appliances. Despite
these and other efforts to reduce emissions, the Basin has
been unable to attain compliance with federal ozone
standards. The District is required to bring the Basin into
attainment of the 2015 federal 8 hour ozone standard by the
year 2038. To do so, the District must achieve a reduction in
NOx emissions of 124 tons per day, which equates to a 67
percent reduction beyond the reductions projected by the
previously adopted rules and an 83 percent reduction below
current levels.
RINNAI AMERICA CORP. V. SCAQMD 15
In December 2022, the District adopted the most recent
amendment to the District’s air quality management plan
(the “2022 Plan”). The 2022 Plan found that “there is no
viable pathway to achieve the needed reductions without
widespread adoption of zero emissions (ZE) technology
across all . . . stationary sources, large and small.” To address
this determination, the 2022 Plan called for the District to
require zero NOx emissions from commercial water heaters.
According to the District’s estimates, emissions from
appliances account for nearly 20 percent of the emissions
from the residential and commercial combustion stationary
sources the District regulates.
The District began rulemaking proceedings to
implement the 2022 Plan in April 2023. On June 7, 2024,
following fourteen months of deliberation, the District
adopted amendments to Rule 1146.2. The stated purpose of
the Rule is “to reduce Oxides of Nitrogen (NOx) emissions
from Water Heaters, Boilers, and Process Heaters fired with,
or designed to be fired with, natural gas.” The Rule prohibits
the manufacture, sale, or installation of large water heaters,
small boilers, and process heaters that emit more than zero
NOx. The Rule’s implementation is subject to staggered
deadlines based on the type of unit and whether it is installed
in a new or existing building. The first compliance deadline,
which applies to a limited subset of units installed in new
buildings, took effect January 1, 2026. Once fully
implemented, the Rule will eliminate nearly 10 percent of
emissions within the Basin.
C. Procedural Background
On December 5, 2024, Plaintiffs filed a lawsuit
challenging the Rule in the Central District of California. In
the operative first amended complaint, Plaintiffs asserted a
16 RINNAI AMERICA CORP. V. SCAQMD
single cause of action alleging that the Rule is preempted by
EPCA. Plaintiffs brought this claim as a facial challenge and
asserted that “[t]here is no set of circumstances under which
the rule can be valid under federal law.” Plaintiffs requested
that the court issue a “declaratory judgment . . . that the
District’s Rule 1146.2 is preempted by federal law . . . and
is therefore void and unenforceable,” as well as “a
permanent injunction enjoining the District from enforcing
or attempting to enforce Rule 1146.2’s zero-NOx emissions
limits.”
On April 14, 2025, Plaintiffs moved for summary
judgment. The District filed a cross-motion on May 12,
2025. On July 18, 2025, the district court denied Plaintiffs’
motion, granted the District’s motion, and entered judgment
in favor of the District. On July 22, 2025, the district court
made modest modifications to its summary judgment order.
As set forth in its amended order, the district court held that
the Rule was not preempted because it “does not concern the
energy use of appliances under the EPCA.” The district court
explained that “the Rule regulates appliances’ NOx
emissions in order to address air pollution issues and the
health risks associated with the combustion of natural gas,”
and “does not implicate any of the issues the EPCA was
intended to address.”
On August 27, 2025, Plaintiffs moved before the district
court for an injunction pending appeal. The district court
denied the motion on September 29, 2025. On October 6,
2025, Plaintiffs filed a motion for an injunction pending
appeal before this Court, which we denied on December 22,
2025.
RINNAI AMERICA CORP. V. SCAQMD 17
II. STANDARD OF REVIEW
We “review de novo the district court’s order granting
summary judgment on preemption grounds.” Am. Apparel &
Footwear Ass’n, Inc. v. Baden, 107 F.4th 934, 938 (9th Cir.
2024).
Where, as here, a statute contains an express preemption
clause, we look to the “text, framework, and historical
context” of the statute to discern Congress’s intent. R.J.
Reynolds Tobacco Co. v. County of Los Angeles, 29 F.4th
542, 552 (9th Cir. 2022); see also Dan’s City Used Cars, Inc.
v. Pelkey, 569 U.S. 251, 260 (2013) (“We focus first on the
statutory language, which necessarily contains the best
evidence of Congress’ pre-emptive intent.” (citation
modified)). Although we begin with the wording of the
preemption clause, we “must also consider the statute as a
whole to determine whether the local [regulation] actually
conflicts with the overall federal regulatory scheme.” R.J.
Reynolds, 29 F.4th at 553 (internal quotation marks and
citation omitted).
III. DISCUSSION
The question presented in this appeal is whether EPCA
preempts the District’s efforts to comply with its obligations
under the CAA by enacting a zero NOx emissions standard
for appliances. We hold that it does not. Under the CAA,
states are required to take “all reasonably available control
measures” to reduce emissions from existing sources.
§ 7502(c)(1). Pursuant to the CAA, the District and
numerous other states and local regulators have long
regulated appliance emissions, and the EPA has routinely
approved such regulations. Nothing in the text, structure, or
history of EPCA suggests that Congress intended to interfere
with states’ ability to use these well-established methods to
18 RINNAI AMERICA CORP. V. SCAQMD
achieve compliance with federal air quality standards under
the CAA.
Plaintiffs’ arguments to the contrary rely exclusively on
our decision in California Restaurant Association v. City of
Berkeley, 89 F.4th 1094 (9th Cir. 2024) [hereinafter CRA].
But as explained below, Plaintiffs read CRA far too broadly.
Contrary to Plaintiffs’ assertions, our “very narrow”
decision in that case did not consider the issue now before
us: whether EPCA preempts state regulations enacted
pursuant to another federal statute, like the CAA. Id. at 1106.
Finally, even if we were to accept Plaintiffs’
interpretation of the scope of EPCA’s preemption provision,
their facial challenge nonetheless fails. Plaintiffs cannot
show that the Rule is unconstitutional in every application
because the Rule regulates emissions from process heaters,
which are not among the list of covered products under
EPCA and for which the DOE has not issued any federal
standards.
For each of these reasons, addressed in turn below, we
affirm the district court’s grant of summary judgment in
favor of the District.
A. EPCA’s Preemptive Scope Does Not Cover State
Appliance Emissions Standards Enacted
Pursuant to the CAA
EPCA’s preemption provision states, in relevant part,
that “effective on the effective date of an energy
conservation standard established in or prescribed
under section 6295 of this title for any covered product, no
State regulation concerning the energy efficiency, energy
use, or water use of such covered product shall be effective
with respect to such product.” § 6297(c). “Energy use,” in
RINNAI AMERICA CORP. V. SCAQMD 19
turn, is defined as “the quantity of energy directly consumed
by a consumer product at point of use, determined in
accordance with test procedures under section 6293 of this
title.” § 6291(4).
As Plaintiffs concede, the text of EPCA contains no
mention of emissions regulations. Plaintiffs nonetheless
contend that EPCA’s preemption provision must be
construed as prohibiting state and local regulators like the
District from adopting zero NOx emissions standards
consistent with the CAA. We find no support for that view
in the text, framework, or history of EPCA.
Enacted 5 years after the passage of the Clean Air
Amendments of 1970, EPCA was initially designed to
establish energy usage labeling requirements on appliances
in response to the oil crisis of the 1970s. EPCA was then
expanded in 1978 to create “a nationwide conservation
program for appliances” and to require the DOE to establish
“minimum energy efficiency standards for . . . covered
products.” Air Conditioning, 410 F.3d at 499. The DOE,
however, failed to do so and instead adopted a general policy
of granting preemption waivers to states, which led to a
patchwork of different state efficiency standards for the
same appliances. Id. at 500. Congress responded by
amending EPCA again in 1987 and broadening its
preemption provision “to counteract the systems of separate
state appliance standards that had emerged.” Id.
The history of EPCA thus makes clear that Congress was
concerned with the establishment of uniform conservation
standards to remedy the patchwork of different state
standards that existed under the previous regime. This focus
is reflected in the text of EPCA’s preemption provision. That
provision provides that once the DOE establishes a national
20 RINNAI AMERICA CORP. V. SCAQMD
energy conservation standard for a covered product, state
regulations concerning the energy use or energy efficiency
of that product are preempted. § 6297(c). The exemptions to
EPCA preemption further underscore this focus. The
enumerated list of exemptions includes certain building
codes, state procurement standards that are more stringent
than federal energy conservation standards, and waivers “to
meet unusual and compelling State or local energy or water
interests.” § 6297(d)-(f). Each exemption relates to the
energy efficiency and energy use of covered products.
Notably absent from the text and legislative history of
EPCA is any mention of appliance emissions standards.
Indeed, although EPCA grants the DOE the authority to set
energy conservation standards for appliances, § 6295,
nothing in that grant of authority suggests that the DOE also
possesses the authority to dictate state emissions standards. 5
That authority instead falls squarely within the framework of
“federal-state collaboration” established by the CAA under
the purview of the EPA. Ohio, 603 U.S. at 283; see
§ 7409(b)(1). As the U.S. Supreme Court has stated in an
analogous context, the EPA’s statutory duty to protect the
public’s health and welfare is “wholly independent” of
another agency’s “mandate to promote energy efficiency.”
Massachusetts v. E.P.A., 549 U.S. 497, 531-32 (2007)
(rejecting the EPA’s argument that it lacked the authority to
regulate greenhouse gas emissions from motor vehicles
“because doing so would require it to tighten mileage
5
In relevant part, EPCA defines an “energy conservation standard” as “a
performance standard which prescribes a minimum level of energy
efficiency or a maximum quantity of energy use . . . for a covered
product.” 42 U.S.C. § 6291(6).
RINNAI AMERICA CORP. V. SCAQMD 21
standards, a job (according to EPA) that Congress has
assigned to [the Department of Transportation]”).
Under the CAA, the EPA is required to set standards for
air pollutants as necessary to protect the public health, see
§ 7409(a)(1), and states are required to take “all reasonably
available control measures as expeditiously as practicable”
to achieve compliance with those standards, including by
reducing “emissions from existing sources in the area as may
be obtained through the adoption, at a minimum, of
reasonably available control technology,” § 7502(c)(1).
States that do not comply with these obligations face
substantial penalties. Areas like the Basin, for example, that
remain in “extreme” nonattainment with federal standards
may be fined large annual fees for every ton of pollutant
emitted over the baseline and may lose their federal highway
funding. §§ 7509(b), 7413, 7511d.
For decades, state and local regulators have utilized
appliance emissions regulations as an important tool to help
achieve compliance with the NAAQS. The District is one
example. Since its inception in the 1970s, the District has
regulated emissions from appliances like furnaces and water
heaters. The District enacted the first iteration of Rule
1146.2 in 1998 and has subsequently amended the Rule
several times to further restrict appliance emissions. These
regulations are a critical part of the District’s pollution
control efforts, as emissions from appliances account for
almost 20 percent of all emissions from the stationary
sources the District regulates. Indeed, the District’s 2022
Plan found that widespread adoption of a zero emissions
standard across all stationary sources, including appliances,
was the only viable way to bring the Basin into compliance
with federal ozone standards. In other words, the District has
22 RINNAI AMERICA CORP. V. SCAQMD
determined that it cannot comply with the CAA unless it
enacts zero emissions standards like Rule 1146.2. 6
The District is not the only local regulatory agency that
has relied on appliance emissions regulations. Amici
identify 35 other jurisdictions ranging from Texas to Utah to
Washington that have adopted similar low, ultra-low, and
zero NOx emissions standards for appliances. Moreover, the
Bay Area enacted zero NOx emissions standards for
commercial water heaters and furnaces in March 2023, and
yet to date, over three years later, no challenge to those
standards has been filed. Over 60 other cities and counties in
California, as well as states such as Colorado and Maryland,
are likewise considering policies for zero emissions
appliances.
Critically, the federal government has not sought to
prevent states from enacting these appliance emissions
regulations but instead has supported the states’ efforts. The
EPA has approved appliance emissions standards submitted
by local regulators, including the District, in State
Implementation Plans since at least 1986. See, e.g., 51 Fed.
Reg. 600, 602 (Jan. 7, 1986) (approving the Bay Area Air
Quality Management District’s NOx emissions standards for
6
Plaintiffs agree. Their reply brief states, “Plaintiffs do not doubt that
Congress has put the District between a rock and a hard place by
requiring it to meet ambitious air quality targets while denying it control
over major emission sources.” Nonetheless, the dissent engages in
speculation without any basis in the record that “California and the
District could reduce NOx in countless ways beyond the rule at issue
here.” Dissent at 41 n.4. Even Plaintiffs do not engage in such
speculation. We note that the District lacks the authority to enact the
types of regulations proposed by the dissent. For example, under
California law, the District lacks the authority to regulate emissions from
motor vehicles. See Cal. Health & Safety Code § 39002.
RINNAI AMERICA CORP. V. SCAQMD 23
residential central furnaces); 67 Fed. Reg. 16,640 (Apr. 8,
2002) (approving the District’s NOx emissions standards for
boilers, steam generators, process heaters, and water
heaters); 73 Fed. Reg. 73,562, 73,570-71 (Dec. 3, 2008)
(approving Texas’s NOx emissions standards for water
heaters, small boilers, and process heaters); 89 Fed. Reg.
54,358, 54,360 (July 1, 2024) (approving Utah’s NOx
emissions standards for gas fired water heaters). In fact, in
the case of San Joaquin Valley (which, similar to the District,
is in “serious” nonattainment with federal standards), the
EPA in 2022 expressed concern that San Joaquin Valley’s
proposed SIP was insufficient because, in part, it lacked a
zero emissions standard. See 87 Fed. Reg. 60,494, 60,512
(Oct. 5, 2022). The EPA’s approval of these state appliance
emissions standards imbues them with “the force and effect
of federal law,” which, among other things, makes them
enforceable in federal court. Safe Air for Everyone v. E.P.A.,
488 F.3d 1088, 1097 (9th Cir. 2007) (quoting Trs. for Alaska
v. Fink, 17 F.3d 1209, 1210 n.3 (9th Cir. 1994)); see also
§ 7604(a), (f)(4).
Given the extensive history of federal involvement in the
regulation of air pollution, Plaintiffs bear a “heavy burden of
showing” that Congress intended for EPCA to intrude upon
the intricate regulatory scheme established by the CAA. Epic
Sys. Corp. v. Lewis, 584 U.S. 497, 510 (2018). Indeed, when
faced with a claimed conflict between two federal statutes,
“we come armed with the ‘strong presumption’ that repeals
by implication are ‘disfavored’ and that ‘Congress will
specifically address’ preexisting law when it wishes to
suspend its normal operations in a later statute.” Id. (quoting
United States v. Fausto, 484 U.S. 439, 452, 453 (1988)
(citation modified)).
24 RINNAI AMERICA CORP. V. SCAQMD
Plaintiffs have not offered anything to rebut this
presumption. As Plaintiffs concede, the text of EPCA makes
no mention of emissions regulations. Nor have Plaintiffs
pointed to a single piece of EPCA’s legislative history
mentioning emissions regulations of any kind, let alone
indicating that EPCA was intended to preempt states’ ability
to regulate appliance emissions. At the time of EPCA’s
initial passage in 1975, Congress was no doubt aware of the
obligations it had imposed on the states through the CAA
amendments passed just five years prior. See Pit River Tribe
v. Bureau of Land Mgmt., 939 F.3d 962, 971 (9th Cir. 2019)
(“[W]e assume Congress is knowledgeable about existing
law when it enacts new legislation.”). When EPCA’s
preemption provision was later amended in 1987, the
District and multiple other state regulators had already
promulgated, and the EPA had approved, NOx emissions
standards for EPCA-covered appliances. See Hall v. U.S.
Dep’t of Agric., 984 F.3d 825, 840 (9th Cir. 2020)
(“Congress is presumed to be aware of an agency’s
interpretation of a statute.”). Yet at no point in crafting or
amending EPCA did Congress choose to include language
calling into question the states’ ability to comply with their
obligations under the CAA by enacting appliance emissions
regulations.
Moreover, when Congress amended the CAA in 1990 to
strengthen its enforcement efforts against nonattainment
areas, Congress once again did not address, let alone express
concern about, EPCA preemption. Neither Plaintiffs nor the
dissent contend otherwise. Instead, Plaintiffs and the dissent
rely on a catchall provision in the CAA stating that a state’s
SIP must include assur