Federal judge restores $7B Solar for All program, says EPA illegally axed it

Key Points:

• A federal judge vacated the EPA’s decision to end its $7 billion Solar for All program, ruling that the agency illegally terminated obligated grant funding and exceeded its statutory authority under the Administrative Procedure Act.
• Judge Mary McElroy stated that the One Big Beautiful Bill Act did not give the EPA discretion to convert Solar for All funds into a lump sum, and Congress intended for the EPA to continue administering already obligated grants.
• The Solar for All program, part of the Inflation Reduction Act’s $27 billion Greenhouse Gas Reduction Fund, aimed to help low-income and disadvantaged communities access zero-emission technologies, with funds obligated by September 2024 and available for five years.
• Despite Congress repealing the fund and the EPA terminating the program following the OBBBA’s passage, the court found that the EPA was required to continue administering the grants, contradicting EPA Administrator Lee Zeldin’s claim of lacking statutory authority.
• Environmental and advocacy groups praised the ruling, highlighting that the termination unlawfully withheld billions intended to lower energy costs for families and communities, and the lawsuit was filed by several organizations on behalf of labor and community groups.