Attorney General Rayfield Challenges EPA Over Cuts to Solar Program That Lowered Energy Costs for Oregon Families

Attorney General Dan Rayfield and 22 other plaintiffs are suing the U.S. Environmental Protection Agency (EPA) and EPA Administrator Lee Zeldin for illegally ending a $7 billion program that lowers energy costs and pollution by bringing solar energy to more than 900,000 households in low-income and disadvantaged communities across the country.

Oregon and 23 other grant recipients also filed suit yesterday in the U.S. Court of Federal Claims to recover damages for EPA’s unlawful breach of the grant agreements that were executed under this program.

Congress created the Solar for All program in 2022 as part of the Inflation Reduction Act, directing EPA to make competitive grants to states and other entities to deploy solar projects in low-income and disadvantaged areas. EPA selected recipients and awarded all of the program funds to plaintiff states and other grant recipients by August 2024. Oregon and the other plaintiffs moved forward with planning projects and working with stakeholders to develop their solar programs.

But EPA abruptly and unlawfully terminated the program two months ago and clawed back the vast majority of the money already awarded. That has left Oregon and the other plaintiffs without access to the funds to proceed with their solar programs, after the states spent significant time planning and launching programs and committing state funds. The Oregon Department of Energy had planned to use federal EPA funding to help Oregonians save more than $83 million on energy costs. Without that funding, the state can’t move forward with several key programs — including low- or no-cost solar installations for single-family homes, rebates for apartment buildings that help low-income residents, and financial and technical support for new community solar projects, including those in areas served by consumer-owned utilities.

“Working families are already feeling the strain of rising energy costs – and blocking Oregon’s clean energy programs only makes that worse,” said Attorney General Rayfield. “This funding wasn’t just about protecting the environment; it was about lowering bills, creating jobs, helping communities transition to cleaner, more affordable power.”

When President Trump took office this past January, he prioritized fossil fuel extraction to address an alleged “energy emergency” while arbitrarily excluding solar power as a resource that can be tapped to meet the country’s energy needs. In July, Congress passed the president’s “One Big Beautiful Bill Act,” rescinding funds for the Solar for All program that were unobligated as of July 3. The effect of that move was small, given that EPA had obligated all of the $7 billion for the program nearly a year earlier.

But instead of following that newly passed law, EPA and Zeldin illegally terminated the program on August 7. On social media, Zeldin made baseless accusations, calling Solar for All a “boondoggle.” The agency then sent memos to all recipients, including the plaintiffs, saying EPA no longer has a “statutory basis or dedicated funding” for the program, even though Congress never directed EPA to cancel funds that had already been awarded. In fact, Congress did the opposite by only rescinding unobligated funds for Solar for All.

Attorney General Rayfield and a multistate coalition are filing a lawsuit today in U.S. District Court for the Western District of Washington, alleging, among other things, that the EPA violated the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine in unlawfully canceling the program.

Joining Attorney General Rayfield in this complaint are the attorneys general of Arizona, California, Colorado, Connecticut, Hawai’i, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Rhode Island, and Vermont, Washington and the District of Columbia. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation.

Separately, Oregon joined a lawsuit that was filed yesterday in the U.S. Court of Federal Claims. In that complaint, the states and other entities argue the EPA breached the clear terms of the agreements and violated the duty of good faith and fair dealing in canceling their Solar for All grants. They’re asking the court to award the plaintiffs money damages, interest, and fees.

Attorney General Rayfield is joined in this lawsuit by the attorneys general in Arizona, California, Colorado, Connecticut, Hawai’i, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Vermont, Washington, and the District of Columbia. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation.