Berkeley Voters to Decide on Building Gas Tax

After a court struck down a Berkeley law that would have mandated all-electric appliances in new buildings, the city is proposing a tax on gas-powered large buildings. As Ysabelle Kempe explains in Smart Cities Dive, the proposal will come before the city’s voters in November.

Building owners would be taxed based on their buildings’ gas consumption and estimates of leaked methane. The law would apply to buildings over 15,000 square feet, which is smaller than the typical size of buildings with “large building” designations. 

“Proponents say the proposed tax would raise $23 million annually for a dedicated fund for building electrification.” According to Kempe, “Most of the fund the tax would create would be used to subsidize building decarbonization, with priority for low-rise residential buildings and restaurants.” Landlords would also be prohibited from passing the cost on to their tenants. 

This approach could work particularly well in Berkeley, where, unlike in some cities, voters can enact a tax with a ballot measure.