Berkeley Voters Reject Natural Gas Tax
Berkeley voters rejected a ballot measure to implement a new tax on natural gas use in buildings. The ballot measure was defeated with nearly 70% of voters opposed in the November 5, 2024 vote.
Measure GG would have imposed a tax of $2.9647 per therm of natural gas for buildings of 15,000 square feet or larger. Government buildings, single-family homes, and residential buildings with at least 50% affordable housing units would be exempt. The revenue was to be used to fund decarbonization programs.
The measure stated that it is “the intent of the People to disincentivize obsolete natural gas infrastructure and associated greenhouse gas emissions in existing commercial and large residential buildings, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas.”
A city report stated that the tax would apply to approximately 609 buildings in Berkeley and would generate approximately $26.7 million in tax revenue during its first year.
The measure also prohibited building owners from passing the tax on to residents through rent increases or “in any other matter.”
The ballot measure was the latest attempt by the city to reduce natural gas use. In 2019, Berkeley became the first U.S. city to attempt to ban the installation of natural gas piping in new residential and commercial buildings. A federal appeals court overturned the ban, holding that federal energy regulations preempted the city’s ordinance. The case was eventually settled and Berkeley agreed to repeal the ordinance implementing the ban.