Nonprofits challenge EPA’s illegal termination of grants that would have provided billions in household energy savings across the country
WASHINGTON – Several nonprofit solar grantees have now filed claims against the U.S. Environmental Protection Agency (EPA) in the Court of Federal Claims, challenging the agency’s decision to break grant agreements that had been awarded competitively under a nationwide program, Solar for All, meant to accelerate deployment of solar on residential homes and slash energy bills for millions of Americans.
The Southern Environmental Law Center, Lawyers for Good Government, Seyfarth Shaw, and Crowell & Moring alongside other law firms, filed the claims on behalf of Growth Opportunity Partners, Inclusive Prosperity Capital, and the Center for Rural Affairs.
The grant recipients are seeking the full value of their unlawfully terminated grants so they can continue their work expanding solar access, cutting skyrocketing power bills, and creating new clean energy jobs across the country. For example, one of the nonprofits, Inclusive Prosperity Capital, planned work in 46 states, Washington D.C., and Puerto Rico, including Georgia, North Carolina, Tennessee, and Virginia. EPA terminated the grant agreements last summer after passage of the “One Big Beautiful Bill Act” even though the law expressly left all Solar for All grant awards EPA already obligated in place.
The new cases filed in the Court of Federal Claims join an array of legal challenges to EPA’s unlawful actions to stop billions in solar grants appropriated by Congress to provide working families with relief from rising electricity bills by using low-cost solar power. The Southern Environmental Law Center and Lawyers for Good Government represent an additional coalition of individuals, solar nonprofits, and businesses—who did not receive grants but were harmed by EPA shutting down the program—in one such challenge in federal district court in Rhode Island.
The Southern Environmental Law Center, Lawyers for Good Government and the larger coalition will continue to press all legal avenues to restore much needed solar funding, even as the legal ground shifts. Ultimately, the EPA will be called to account for its illegal actions.
“Thousands of low- and moderate-income families and citizens of the United States will continue to pay higher-than-necessary energy bills as a result of the illegal and unlawful termination of the Solar for All program,” said Michael Jeans, President & CEO at Growth Opportunity Partners, Inc. “It is our responsibility at Growth Opportunity Partners to seek justice, which is a pillar of our U.S. democracy, and bring the federal government to account for the harm they have caused communities, families, municipalities, workers, citizens, and our organization.”
“American families are facing alarmingly high energy costs, which the Solar for All program was designed to address by lowering energy costs for hard-working Americans and by growing manufacturing jobs to foster a thriving, home-grown solar industry. Unfortunately, the EPA’s illegal termination of the program broke that promise, depriving communities and lenders across the nation of the programming, financing opportunities, and lasting legacy of local and affordable energy solutions for years to come,” said Kerry O’Neill, CEO of Inclusive Prosperity Capital. “IPC remains steadfast in our commitment to support American communities, homes, and families. We now look to the courts to restore our funding and ensure that these vital resources reach those who need them most. At IPC, we believe that every American deserves access to affordable, sustainable domestic energy and a grid that is working for them, not just for big power users.”
"Nebraskans need this community benefit to be restored. The Center for Rural Affairs program was designed to provide capital for community and residential solar, technical assistance, and workforce development, extending well beyond the initial grant period,” said Brian Depew, Executive Director of the Center for Rural Affairs. As many in the state face rising energy prices, this critical grant would have helped lower electricity bills for low-income households while also adding necessary generation capacity and improving grid resilience."
Background
In 2022, Congress provided $7 billion for the Solar for All Program, which EPA used to award grants to organizations and states nationwide to provide energy bill relief to over 900,000 households. All that funding is intended to get affordable solar power to more people through new leasing and power purchase programs, multifamily installations, workforce development and more.
28 million households across the country face a high or severe energy burden, meaning they spend at least 6 percent of their income on energy bills. Solar for All rooftop and community solar programs are designed to alleviate these burdens with at least a minimum of 20% savings delivered to participating households. Nationwide, the program is expected to save an estimated $350 million annually on energy bills and generate 200,000 new jobs alongside workforce training programs. In addition, the SFA program is a source of immediate, cost-effective energy for strained electric grids across the country. Termination of this essential program means EPA is sitting on billions that could be helping people reduce the cost of energy bills at a time when millions of Americans struggle to pay their rising electric bills.
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About Lawyers for Good Government
(L4GG) is a nonprofit organization that harnesses the power of 125,000 lawyers, law students, and advocates in the fight for justice. We identify where lawyers can make the greatest impact and mobilize them to defend democracy and the rule of law, protect civil and human rights, and advance environmental justice through coordinated legal action and advocacy efforts that create meaningful change for all Americans. lawyersforgoodgovernment.org
About Southern Environmental Law Center
The Southern Environmental Law Center is one of the nation’s most powerful defenders of the environment, rooted in the South. With a long track record, SELC takes on the toughest environmental challenges in court, in government, and in our communities to protect our region’s air, water, climate, wildlife, lands, and people. Nonprofit and nonpartisan, the organization has a staff of 250, including more than 160 legal and policy experts and advocates, and is headquartered in Charlottesville, VA, with offices in Asheville, Atlanta, Birmingham, Chapel Hill, Charleston, Nashville, Richmond, and Washington, DC.
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With more than 1,000 lawyers across 19 offices, Seyfarth Shaw LLP provides advisory, litigation, and transactional legal services to clients worldwide. The firm is recognized for its innovative approach, advancing the standard of legal service delivery in an evolving global marketplace.
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About Crowell & Moring LLP
Crowell & Moring is an international law firm with operations in the United States, Europe, and MENA. Drawing on significant government, business, industry, and legal experience, the firm helps clients capitalize on opportunities and provides creative solutions to complex regulatory and policy, litigation, transactional, and intellectual property issues. The firm is consistently recognized for its commitment to pro bono service, as well as its comprehensive programs and initiatives to advance the professional and personal development of all members of the Crowell community.