DOJ Sues Petaluma and Morgan Hill Over Natural Gas Bans

Overview

• The Justice Department filed the complaint on Jan. 5 in the Northern District of California targeting city rules that bar gas infrastructure in new buildings.
• Prosecutors cite the Energy Policy and Conservation Act and ask the court for a declaration of federal preemption and a permanent injunction.
• Petaluma and Morgan Hill officials say they have not enforced their ordinances since the Ninth Circuit struck down Berkeley’s similar policy in 2023.
• The administration frames the bans as costly and restrictive to consumer choice under the 2025 "Unleashing American Energy" directive.
• City leaders report approving projects with gas lines as developers often choose electric systems voluntarily to meet emissions goals.