On June 30, 2025, Governor Gavin Newsom signed into law budget legislation that includes a six-year pause on updates to residential building standards statewide. The updates to the building codes would have given the state and local governments the ability to prohibit natural gas in new construction. The pause is part of reform to the California Environmental Quality Act (CEQA) under AB 130 and SB 131 that is intended to make it easier to build new homes in the state by easing environmental review requirements.

Routine building code updates have allowed the state and local governments to impose energy-use restrictions that are stricter than state standards through reach codes that act as de facto natural gas bans. AB 130 prohibits the California Building Standards Commission and local governments from considering, approving, or adopting any new or amended building standards that apply to residential units from October 1, 2025 through June 1, 2031. There are limited exceptions for necessary emergency health and safety measures.

AB 130’s residential code pause is part of broader efforts to streamline housing production. The bill text explicitly states that the temporary pause on building code changes for residential construction is intended to support statewide housing objectives by bringing certainty to home builders and helping stem construction cost increases. Other AB 130 provisions that amend the Housing Accountability Act, permit streamlining requirements, environmental review exemptions, and housing element compliance timelines.

The 2025 California Building Code cycle, which include the 2025 Building Energy Efficiency Standards, will become effective January 1, 2026. The 2028 residential building code cycle, however, will not occur. Instead, the next opportunity for substantive residential building code updates will likely align with the 2031 cycle.

The latest legislation shows the tension between housing and the move to ban natural gas. In 2023, Governor Gavin Newsom signed CEQA reform legislation that accelerated construction timelines on the projects necessary to achieving the state’s clean energy goals. CEQA requires environmental review of all building projects.

Newsom also signed legislation in 2024 to facilitate the transition of whole neighborhoods from natural gas to electric appliances.