United States · Energy and courts ·

Federal judge rules EPA's termination of $7 billion solar program unlawful

A federal judge in Rhode Island on September 18 vacated the Environmental Protection Agency's termination of Solar for All, ruling that the agency exceeded its authority. Congress rescinded unobligated balances, not the $7 billion already committed.

Why it matters

The program awarded funds to 60 states, tribes and nonprofits and was initially expected to help nearly one million low-income households access solar energy. The ruling restores its administrative footing, though appeals and related funding cases may affect delivery.

Full report

U.S. District Judge Mary McElroy granted the plaintiffs' motion for summary judgment, declared EPA's termination contrary to the Administrative Procedure Act and ordered the termination decision vacated.

The court found that Congress's 2025 repeal of the Greenhouse Gas Reduction Fund rescinded unobligated balances only. The $7 billion obligated before the 2024 deadline remained subject to the original grant framework.

Solar for All awarded funds to 60 states, tribes and nonprofit entities to expand access to zero-emission technology in low-income and disadvantaged communities. Reuters reported that it was initially expected to serve nearly one million households.

EPA said it was reviewing the decision and considering an appeal. The court declined to issue a separate permanent injunction because vacating the termination already prevented continued implementation; related funding disputes remain pending elsewhere.

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