Citizens Reject Berkeley Gas Tax Ballot Measure

On November 5, the citizens of Berkeley, California overwhelmingly defeated the “Fossil Free Berkeley” Ballot Measure by a two-thirds majority. The measure, backed by climate and labor groups, would have imposed an excise tax on generating gas emissions in buildings with at least 15,000 square feet of gross floor area, with the funds going toward decarbonization programs. The “No” campaign, organized organically by local real estate real estate groups, said the tax was prohibitively expensive for small businesses, nonprofits, schools, and grocery stores – a message that resonated with Berkeley voters.

In 2019, Berkeley was the first U.S. city to approve a ban on gas hookups in most new homes, leading to legal challenges. In April 2023 the U.S. Court of Appeals for the 9^th Circuit ruled that the city could not preempt federal statutes in attempting to regulate the piping that carries natural gas into a building as a way to regulate the appliances themselves. The result of this ballot measure sent a strong message to elected and appointed officials about the value citizens place on affordability and consumer choice.