Synopsis

The U.S. federal government sued ​two cities in Northern California, Morgan Hill and Petaluma, alleging that local ordinances that ​restrict natural gas infrastructure and appliances in new construction are preempted by the Energy Policy Conservation Act.

Why It Matters for Public Health 

Combustion of fossil fuels in buildings simultaneously contributes to air pollution and to climate change, which a group of over 200 health and medical journals call “a global health emergency.”  

Retrofitting existing buildings to reduce their emissions can be expensive but designing buildings to avoid such emissions when they’re first constructed is far cheaper and healthier for those occupying them. The ordinances passed in both Morgan Hill and Petaluma both involve regulating the fuels used in a building at construction, which is an important tactic local governments can use to reduce greenhouse-gases and other air pollution in a cost-efficient manner.

Background

In November 2019, Morgan Hill’s City Council adopted Ordinance 2306 to their municipal code, including Chapter 15.63, Prohibition of Natural Gas Infrastructure in New Buildings. The ordinance includes scientific evidence of the contributions fossil fuels (such as natural gas) have on climate change and global warming. It also lists examples of some local climatic, geologic and topographical conditions and health concerns as reasons for the necessity of the addition to the code.

The City of Petaluma adopted its All-Electric Code in May 2021 as part of its goals to achieve carbon neutrality by 2030. The Code generally requires new homes and businesses to use electricity-based systems, with some exceptions.

On January 5, 2026, the U.S. federal government sued ​both cities in objection to their all-electric local ordinances, stating that both are natural gas bans that are preempted by the Energy Policy and Conservation Act (EPCA).

EPCA establishes federal energy-efficiency standards for many consumer and industrial appliances, including key building appliances like furnaces and air-conditioners. It also preempts state and local regulations that “concern[]” the “energy efficiency” or “energy use” of appliances covered by EPCA, although there are many exceptions. This preemption is generally considered to prevent state and local governments from establishing their own efficiency regulations for EPCA-covered appliances. However, the Ninth Circuit, which is the appeals court with jurisdiction over California, has held that this provision also preempts certain regulations that prevent the use of EPCA-covered gas appliances.  

Notably, this is the first time that the federal government has brought suit as a party to argue that a local action is preempted by EPCA. It is rare for the federal government to sue to enforce statutory preemption provisions, and especially rare for it to do so without specific authorization from Congress.

Proceedings

The plaintiffs’ filed their complaint on January 5, 2026.

Litigation Status (Closed)

On March 23, the U.S. government submitted a notice of voluntary dismissal based on recent actions by Petaluma and Morgan Hill to clean up their municipal codes. The City of Morgan Hill adopted “An Ordinance of the City of Morgan Hill Repealing Chapter 15.63 (Prohibition of Natural Gas Infrastructure in New Buildings) of the Morgan Hill Municipal Code and the City of Petaluma adopted “An Urgency Ordinance of the City Council of the City of Petaluma Amending Chapter 17.09 of the Petaluma Municipal Code, Entitled ‘All-Electric Construction in Newly Constructed Buildings,’ to Convert Chapter 17.09 to a Policy Promoting But Not Requiring Electrification in New Construction and Substantial Remodels … Eliminating All Mandatory Electrification Requirements in Chapter 17.09.”