The Trump administration's U.S. Justice Department filed a lawsuit yesterday against the California cities of Petaluma and Morgan Hill, asking a federal court to halt local rules that restrict natural gas hookups and gas-powered appliances in new buildings. The complaint, lodged in the U.S. District Court for the Northern District of California, portrays the bans as unlawful policies that will hit residents in the wallet and sharpens a broader fight over whether cities can phase out fossil fuel infrastructure as part of climate policy.
As reported by Reuters, Justice Department attorneys argue that the ordinances, adopted starting in 2019, run afoul of a 1975 federal law that bars states and localities from regulating the "energy use" of products that are already governed by federal efficiency standards. The government is asking the court to block both cities from enforcing their measures while the case plays out.
The complaint, cited by The Guardian, declares that the natural gas bans not only impose crushing costs on California residents but are also unlawful. Federal lawyers contend the local rules effectively control the use of gas fired appliances that fall under federal jurisdiction, and they argue that kind of indirect regulation is still preempted by federal law.
Legal Precedent and EPCA Preemption
The lawsuit leans heavily on the Energy Policy and Conservation Act of 1975, a federal statute that has become a central weapon in battles over municipal gas policies. In 2023, a three judge panel of the Ninth Circuit struck down Berkeley's 2019 gas piping ordinance, finding that cutting off gas lines in new buildings was effectively a regulation of the energy use of covered appliances. That ruling has shaped subsequent challenges to local gas restrictions, and E&E News has detailed the court's reasoning and its ripple effects.
Bay Area Trend and Local Impact
Dozens of jurisdictions nationwide, many in California, have adopted or floated all electric reach codes since 2019 as part of efforts to slash climate warming emissions from buildings. Columbia Law has tracked the spread of municipal natural gas bans around the country.
Hoodline reporting shows that some Bay Area cities have paused enforcement of their gas restrictions while officials reconsider the legal risk and potential costs for developers and homeowners. The Bay Area cities pause gas bans captures how those debates are unfolding on the ground.
Reactions in Petaluma and Morgan Hill
Petaluma City Manager Peggy Flynn told The Guardian in an email that the city had no immediate comment on the lawsuit. Morgan Hill officials, for their part, did not respond to requests for comment, according to Reuters. Both cities have previously clashed with federal officials over other policy matters, underscoring a longer-running tug of war between local priorities and Washington's agenda.
What Happens Next
The case will proceed in federal district court and could eventually be appealed to the Ninth Circuit or even higher, positioning it as a potential test case for how far the 1975 energy law reaches. A victory for the Justice Department could undercut similar local decarbonization rules across California, while a win for Petaluma and Morgan Hill would leave more room for cities to keep pursuing electrification policies. Legal experts say much will hinge on how strictly courts read the Energy Policy and Conservation Act's preemption language, and E&E News and other outlets note that whatever the outcome, the ruling is likely to echo through energy and climate fights for years.
