California, Colorado and Washington have launched legal action against the federal government to force the release of grants that Congress previously approved for clean energy projects, the office of the California attorney general said on Wednesday.
The lawsuit targets an administration move that terminated funding allocated under laws meant to support low-carbon energy development, including the Inflation Reduction Act. California's filing frames the termination as part of a broader executive effort to limit federal backing for wind, solar and other fossil-free power sources while placing greater emphasis on increasing domestic oil production.
States have repeatedly been principal challengers to multiple administration policies and have initiated dozens of suits in recent months. The California attorney general's office said the new litigation is one more example of state-level pushback against federal actions that, in their view, exceed executive authority.
California Attorney General Rob Bonta has indicated additional legal actions are forthcoming. He told Reuters he plans to sue over changes in vaccine policy and intends to contest the rescission of a key Environmental Protection Agency determination known as the endangerment finding, which has been central to climate change regulation.
A central element of the fresh lawsuit is the cancellation of $1.2 billion in federal funding for the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES, Bonta said. The ARCHES funding was intended to support a hydrogen program designed to replace fossil fuels in a range of applications, including utilities, public transit, trucking and port operations.
In presenting the legal argument, California asserts that federal agencies are obliged to implement laws as passed by Congress. "It’s as simple as Congress has the power of the purse, not the executive branch, and Congress already appropriated this funding," Bonta said in an interview on Tuesday, ahead of the lawsuit announcement. The suit seeks judicial enforcement of those appropriations.
The litigation highlights a legal dispute over the scope of executive authority to alter or withdraw funding that Congress has directed for specific climate and clean energy initiatives. The states' complaint underscores a direct conflict between congressional appropriations and executive branch actions that terminate funding for programs created under environmental statutes.
Summary
California, Colorado and Washington sued the federal government to compel payment of congressionally approved grants for clean energy projects after the administration terminated certain funding, including $1.2 billion for the ARCHES hydrogen program. The states argue federal agencies must carry out congressional appropriations and contend the executive branch overstepped its authority.
Key points
- Three states filed suit to force release of congressionally approved grants for clean energy projects; sectors affected include wind, solar, hydrogen, utilities, public transit, trucking and ports.
- The administration ended some funding allocated under environmentally focused laws, including the Inflation Reduction Act, while prioritizing increased U.S. oil production.
- California lost $1.2 billion in funding intended for the ARCHES hydrogen initiative, which the state says was meant to substitute hydrogen for fossil fuels across multiple transport and utility uses.
Risks and uncertainties
- Judicial outcome uncertainty - It is unclear whether the courts will compel federal agencies to disburse the appropriated funds, creating legal uncertainty for clean energy project planning and financing (affects clean energy and infrastructure sectors).
- Program disruption - The termination of funds, such as the $1.2 billion ARCHES cancellation, introduces risks to project timelines and the deployment of hydrogen and other low-carbon technologies (affects hydrogen, utilities, transportation and ports).