SEATTLE (Oil Monster): The U.S. Department of Justice filed a lawsuit on January 6, 2026, against two California cities—Petaluma and Morgan Hill—seeking to invalidate local ordinances that ban natural gas infrastructure in newly constructed buildings. The complaint, filed in the U.S. District Court for the Northern District of California, alleges these municipal regulations violate the Energy Policy and Conservation Act (EPCA) of 1975.
ALSO READ:
New York First U.S. State to Ban Natural Gas in New Buildings
Senator 'Very Frustrated' over How Natural Gas Ban Came About
The lawsuit builds on a 2023 precedent from the Ninth Circuit Court of Appeals, which determined that Berkeley's natural gas ban was preempted by federal law. Under EPCA, the federal government holds exclusive authority to establish energy efficiency standards for appliances, including natural gas-powered equipment.
Morgan Hill implemented its natural gas prohibition in late 2019, applying to building permits submitted after March 2020. Petaluma adopted a similar all-electric building ordinance in May 2021, expanding the restriction to substantial building renovations. Both municipalities framed these policies as climate action measures designed to reduce greenhouse gas emissions and support California's carbon neutrality goal by 2045.
City officials from both jurisdictions maintain they have complied with federal law following the appellate court's Berkeley ruling. Morgan Hill City Attorney Donald Larkin stated the city has approved construction projects with natural gas infrastructure since the decision. Likewise, Petaluma City Attorney Eric Danly confirmed the city has not rejected permit applications based on electrification requirements and has greenlit developments incorporating natural gas systems.
The Department of Justice argues the ordinances create undue financial hardship for residents by raising construction costs and restricting consumer options. Federal attorneys contend the local bans compromise energy affordability and reliability while contradicting federal energy policy priorities.
Environmental advocates defend all-electric building mandates as necessary climate interventions that will reduce carbon emissions and generate long-term utility savings. Supporters view local electrification policies as essential mechanisms for municipalities to advance climate goals. The case's resolution may establish important precedents for the authority of local governments to implement climate policies that intersect with federal energy regulations.
The Department of Justice claims local ordinances banning natural gas in new buildings violate the Energy Policy and Conservation Act (EPCA) of 1975, which grants the federal government exclusive authority over appliance energy efficiency standards. The lawsuit argues these municipal regulations are preempted by federal law. The lawsuit targets Petaluma and Morgan Hill, two Bay Area cities that enacted ordinances prohibiting natural gas infrastructure in new construction. Morgan Hill's ban took effect in 2020, while Petaluma's all-electric ordinance was adopted in 2021. In 2023, the Ninth Circuit Court of Appeals ruled that Berkeley's natural gas ban violated federal preemption under EPCA. This decision established the legal precedent that the Trump administration is now using against Petaluma and Morgan Hill. Berkeley subsequently repealed its ordinance in 2024. Both Petaluma and Morgan Hill officials state they are already in compliance with federal law and have approved building projects with natural gas connections since the Berkeley court ruling. City attorneys claim they have not denied permits based solely on electrification requirements. The outcome could significantly impact how local governments implement climate initiatives that overlap with federal regulatory authority. A ruling favoring the federal government might limit municipal ability to mandate all-electric buildings, while a decision supporting the cities could empower local climate action despite federal preemption concerns. Why is the Trump administration suing California cities over natural gas bans?
Which California cities are being sued over natural gas bans?
What happened with Berkeley's natural gas ban?
Are the cities currently enforcing their natural gas bans?
What are the implications of this lawsuit for climate policy?
