Two cities in the San Francisco Bay Area are facing a lawsuit brought on by the Trump administration seeking to end their bans on natural gas in new buildings.
On Jan. 5, the Department of Justice filed a suit in the Northern District of California against the cities of Morgan Hill and Petaluma.
According to the text of the lawsuit, federal prosecutors argue such bans lead to “crushing” costs for residents and are preempted by federal law.
“These natural gas bans hurt American families and are outright illegal,” Attorney General Pamela Bondi said in a statement. “Alongside the Department of Energy, the Department of Justice is working around the clock to end radical environmentalist policies, restore common sense, and unleash American energy.”
Adam Gustafson, the Principal Deputy Assistant Attorney General of the DOJ’s Environment and Natural Resources Division, said, “When states and cities pick winners and losers, consumers pay the price. Our complaint seeks to restore consumer choice so that people and businesses can build in a way that fits their needs best.”
According to prosecutors, Morgan Hill approved a ban on new natural gas infrastructure in 2019, while Petaluma followed two years later.
Another Bay Area city, Berkeley, was the first in the country to implement a ban on natural gas on new homes and buildings, citing concerns about climate change. The 9th Circuit Court of Appeals tossed out Berkeley’s ordinance in 2024, following a challenge brought on by the California Restaurant Association.
“Under that controlling precedent, Morgan Hill’s and Petaluma’s natural gas bans are invalid-as numerous other California cities have recognized when recently repealing or suspending their equivalent bans,” the lawsuit said.
In a statement to CBS News Bay Area on Tuesday, Morgan Hill City Attorney Donald Larkin said the city follows federal law and will continue to do so.
“The City has not denied any permits for gas infrastructure based on the 2019 ordinance since the courts struck down Berkeley’s similar ordinance. In fact, the City has approved projects with gas infrastructure. While we are still reviewing the complaint, this lawsuit appears to be an unnecessary effort to require the City to follow laws with which the City is already in compliance,” Larkin said.
Petaluma City Attorney Eric Danly said in a separate statement to CBS News Bay Area that they are also complying with federal law and that they are not enforcing their ordinance following the 9th Circuit ruling.
“In fact, the City has not denied any project or permit applications based on its electrification regulations, and has approved and is processing development projects that include gas infrastructure. In any event, the City has observed that developers have generally opted voluntarily to install electric utilities,” Danly said.
The lawsuit calls for the court to declare the bans are preempted by federal law and to enter a permanent injunction to prevent the ordinances from taking effect.
Tim Fang
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