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DOJ Sues California Cities Over All-Electric Building Laws

1/13/2026

50 8 Full Breakdown

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Trump Challenges California

On January 5, 2026, the U.S. Department of Justice filed a lawsuit against Morgan Hill and Petaluma, California, challenging their all-electric building ordinances.
It reflects U.S. President Donald Trump’s administration’s effort to limit state energy regulations perceived as conflicting with federal policy.
California faces a 64% decline in gas tax revenue from 2025 to 2040 as EVs reach 21% of new-car sales, prompting new fees.

Left

California Gas Prices

California gas prices stood at $4.22 per gallon on January 8, 2026, according to the American Automobile Association (AAA).
The national average is $2.80, more than $1 lower than California.
The decline arises from higher oil supply and lower demand, with OPEC+ not boosting production.
Northern California has the lowest prices, with Yuba City at $3.74.
California remains the second-highest gas price in the United States, behind Hawaii.

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Trump Challenges California

On January 5, 2026, the U.S. Department of Justice filed a lawsuit against Morgan Hill and Petaluma, California, challenging their all-electric building ordinances.
It reflects U.S. President Donald Trump’s administration’s effort to limit state energy regulations perceived as conflicting with federal policy.
California faces a 64% decline in gas tax revenue from 2025 to 2040 as EVs reach 21% of new-car sales, prompting new fees.

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