DOJ Lawsuit — A Federal Battle Over the Natural Gas Ban
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Morgan Hill is now a defendant in a high-profile federal lawsuit that puts its climate policies directly in conflict with the Trump administration. On January 5, 2026, the U.S. Department of Justice filed suit in the Northern District of California against Morgan Hill and Petaluma over their ordinances banning natural gas infrastructure in new construction — ordinances both cities adopted in 2019. The DOJ complaint alleges the ordinances effectively ban all use of gas appliances in new buildings and are preempted by the federal Energy Policy and Conservation Act (EPCA), relying heavily on a Ninth Circuit ruling that struck down Berkeley's similar ban. Morgan Hill has already begun retreating: the city has repealed its 2019 natural gas prohibition due to federal preemption risks, reverting to state "electric-ready" standards — but the lawsuit continues, and the legal costs and precedent at stake extend far beyond Morgan Hill's borders.
Related cause: Utilities
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