Berkeley, California, to repeal first U.S. gas ban after settling lawsuit (NYSEARCA:UNG)

The city of Berkeley, California, has agreed to drop the first-ever U.S. natural gas ban following a settlement agreement with the California Restaurant Association, raising questions about the fate of similar efforts to reduce fossil fuel use.

On Friday, the CRA and the city of Berkeley unveiled a legal agreement, with the city ceasing its enforcement of a ban on natural gas piping for new buildings in response to an April 2023 ruling from the Ninth Circuit Court of Appeals that ruled the ban violated the federal Energy Policy and Conservation Act, which allows the Department of Energy to set efficiency standards and prohibits states from setting their own.

“Climate change must be addressed, but piecemeal policies at the local level like bans on natural gas piping in new buildings or all-electric ordinances, which are preempted by federal energy laws, are not the answer,” said CRA President Jot Condie.

The settlement “has implications far beyond the City of Berkeley and is a significant step toward safeguarding energy choice for California consumers and helping our nation continue on a path to achieving our energy and environmental goals,” according to American Gas Association President Karen Harbert.

Environmental advocates say the court decision and Berkeley’s repeal only marks the end of a chapter, and may open the door for more durable strategies to phase out fossil fuels.

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