The United States Justice Department has filed lawsuits against the California cities of Mountain View and Santa Monica over municipal ordinances that restrict natural gas hookups in most new buildings, placing local real estate and construction regulation at the centre of a significant federal legal contest.
The suits, brought under the Energy Policy and Conservation Act, argue that the cities’ measures effectively bar natural gas appliances in new construction and thus conflict with federal standards governing energy conservation of covered products. The department asserts that while localities may set building practices, they cannot adopt regulations that amount to a de facto prohibition of energy sources supplied through interstate commerce. Mountain View’s and Santa Monica’s codes have drawn scrutiny for limiting access to natural gas infrastructure, which supporters view as a way to reduce greenhouse gas emissions and encourage electrification in buildings.
Both cities adopted gas restriction laws amid broader climate policy efforts, with city officials saying they intend to align with California’s environmental goals by reducing fossil fuel dependency in the built environment. In practice, the ordinances require builders to design new residential and commercial properties without traditional gas connections, prompting developers to pivot towards all-electric construction models. Proponents argue such shifts support decarbonisation and modernise building energy use, but federal authorities contend that the ordinances go too far by undermining statutory protections for energy appliances.
Real estate developers and investors are watching the litigation closely because its outcome may influence planning strategies and risk assessments for property projects in jurisdictions considering similar energy-related building codes. The legal challenge highlights a broader tension between local climate initiatives and national regulatory frameworks that govern energy product standards.
