DOJ Sues Two California Cities Over Gas Bans

On Monday, January 5, the U.S. Department of Justice (DOJ) filed suit against the cities of Morgan Hill and Petaluma, California, challenging local ordinances that restrict the use of natural gas and propane in new construction. NPGA is working closely with the U.S. Department of Justice on this matter.

This lawsuit reflects the administration’s increased focus on challenging municipal energy bans that conflict with federal law and exceed local authority. These ordinances unlawfully interfere with federal control over energy markets and appliance standards, violate the Energy Policy and Conservation Act, and directly conflict with the CRA v. Berkeley decision. The cities have already responded claiming that they are not currently enforcing their bans.

NPGA has long raised concerns about local fuel bans and has been in communication with the DOJ for months outlining the legal and practical problems these ordinances create as well as helping identify local laws in conflict with federal law. In earlier communications, NPGA emphasized that municipal energy bans can restrict consumer choice, increase costs, undermine energy reliability, and conflict with federal statutes governing energy policy.

The DOJ’s actions against Morgan Hill and Petaluma demonstrate that these concerns are being taken seriously at the federal level. As Assistant Attorney General Brett A. Shumate said: “Especially during winter, Americans deserve reliable, affordable energy [and]…radical local efforts to undermine American energy dominance must be stopped.” NPGA will continue to engage with federal policymakers and keep members informed as the litigation proceeds, while advocating for policies that recognize propane’s role in the U.S. energy system.

Questions? Contact Director of Regulatory Affairs and Associate General Counsel Kate Gaziano.