Two Northern California cities are facing a federal lawsuit over building codes that, according to local officials, are no longer being enforced.
The U.S. Department of Justice has filed suit against Petaluma and Morgan Hill, targeting local rules that restrict natural gas infrastructure in new construction. The lawsuit, brought under the Trump administration, challenges all-electric building standards adopted by Petaluma in 2021 and Morgan Hill in 2019.
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While the federal government argues the local policies conflict with national energy regulations, city officials say the lawsuit is unnecessary, as both cities have already suspended enforcement of the disputed rules.
The Department of Justice contends that the all-electric standards violate federal energy directives and, “deny consumers reliable, resilient, and affordable energy, as well as the use of commonplace gas appliances.”
News of the legal action caught Petaluma officials off guard, according to city attorney Eric Danly.
“It was actually the city manager got a inquiry from Reuters on [January 5th] before the city council meeting that night and that was the first we'd heard of it because we hadn't been served yet,” Danly said.
Both Petaluma and Morgan Hill originally adopted the all-electric requirements as part of broader climate action strategies aimed at reducing greenhouse gas emissions and moving toward long-term sustainability goals.
However, those efforts shifted after a key federal court decision involving the city of Berkeley.
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Danly said Petaluma paused its natural gas prohibition in 2024 following a Ninth Circuit ruling that overturned Berkeley’s 2019 ban on new gas hookups.
“However, one may feel about the [US Court of Appeals] Ninth Circuit ruling in the Berkeley litigation, it became clear to us that we could no longer enforce those as as mandatory requirements following the ruling,” Danly said.
Morgan Hill city attorney Donald Larkin confirmed his city has also stopped enforcing its ban and has approved new developments that include natural gas infrastructure.
Despite the pause, former Petaluma City Council member D’Lynda Fischer said the city remains committed to its climate goals.
“We are doing everything in our power to get to that point, because we know that that's what it takes to become a more resilient community and what we need to be able to thrive,” Fischer said in response to the lawsuit. “So we're on our way, regardless of what the federal government decides to do.”
Danly noted that even without a mandate, many developers are choosing all-electric designs on their own.
“It's cheaper to just use one energy system in a building than two generally, and that's been borne out just in practice,” Danly said.
Both Petaluma and Morgan Hill have characterized the lawsuit as an effort to force compliance with regulations they say they are already following. The Department of Justice did not respond to requests for comment.
A hearing in the case is scheduled for late April.
Originally reported by Noah Abrams in KRCB.
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