Capitol News

Michigan Attorney General Dana Nessel has announced that a federal court has ruled against the U.S. Department of Energy’s (DOE) policy to cap funding for state energy programs. The U.S. District Court for the District of Oregon found that the DOE’s cap on reimbursements for staffing and administrative costs is illegal, following a motion for summary judgment brought by 19 attorneys general and two governors.

Judge Mustafa Kasubhai determined that the DOE’s funding policy violated the Administrative Procedure Act. The decision prevents reductions in reimbursements that could have impacted millions of dollars in funding for essential energy programs across the country.

“I am relieved that another Court has rejected the Trump Administration’s unlawful attempt to rewrite the rules on already allocated federal funding,” said Nessel. “Michigan and other states rely on these funds to keep vital programs running, and this decision reaffirms that the White House cannot arbitrarily strip away resources for renewable energy and energy efficiency initiatives.”

Earlier this year, Nessel joined a coalition of 18 other attorneys general and two governors in filing a lawsuit against the DOE’s attempt to limit reimbursement of indirect administrative and employee benefit costs to 10 percent of a project’s budget. The group argued that this cap violated federal law, ignored previously negotiated cost rates with states, and would negatively affect staffing and operations at state energy agencies. Judge Kasubhai agreed with these arguments, ruling that the funding cap was both illegal and inconsistent with DOE grant regulations.

Other parties involved in the lawsuit include attorneys general from California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Washington, Wisconsin; as well as governors from Kentucky and Pennsylvania.