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19 States Sue to Restore EPA’s Canceled ‘Solar for All’ Grants as Parallel Damages Cases Expand

States argue Congress rescinded only unobligated money, leaving awarded grants legally intact.

Overview

  • Washington and 18 other states filed in the Western District of Washington to reinstate $7 billion in Solar for All awards, alleging violations of the Administrative Procedure Act and the Constitution’s separation of powers.
  • California’s utilities regulator and other plaintiffs including 15 states separately sued in the U.S. Court of Federal Claims seeking monetary damages for alleged breach of 60 grant agreements.
  • Nevada Attorney General Aaron Ford, joined by 22 states and the District of Columbia, filed a Court of Federal Claims action to recover a $155.7 million award to the Nevada Clean Energy Fund, which advocates say would have lowered bills for about 50,000 residents and supported roughly 1,000 jobs.
  • EPA terminated the program in August after passage of the omnibus “One Big Beautiful Bill,” telling grantees it had no statutory basis or dedicated funding; the agency has declined to comment on the pending cases.
  • The $7 billion program was slated to support more than 4 GW of solar for about 900,000 low-income and disadvantaged households, with California officials highlighting the loss of a $250 million award tied to over 600 planned facilities and discounted-rate offerings.