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Attorney General William Tong announced today Connecticut, 21 other states and the District of Columbia are suing the U.S. Environmental Protection Agency (EPA) and EPA Administrator Lee Zeldin for ending a $7 billion solar energy program, Solar For All.
Connecticut and 23 other grant recipients also filed suit this week in the U.S. Court of Federal Claims to recover damages for EPA’s cancellation of the grant agreements executed under this program.
The Solar For All scheme was created in 2022 to fund solar deployments into low-income and disadvantaged areas as part of the Inflation Reduction Act.
EPA selected recipients and awarded all of the program funds to plaintiff states and other grant recipients by August 2024. Connecticut and the other plaintiffs moved forward with planning projects and working with stakeholders to develop their solar programs.
EPA terminated the program two months ago and clawed back the vast majority of the money already awarded. That has left Connecticut and the other plaintiffs without access to the funds to proceed with their solar programs.
Connecticut was awarded and received $62.45 million in Solar for All funding in 2024 to increase access to solar and energy storage technologies for low-income and disadvantaged communities, including multifamily affordable housing. Working with the Connecticut Green Bank and the Connecticut Housing Finance Authority, the Department of Energy and Environmental Protection expected to assist 7,400 households through increased incentives, new loans and lease programs for residential solar and energy storage. Connecticut claimed the work would save $76.2 million for participating households.
On August 7, 2005, EPA liquidated the DEEP account that had contained the full remaining $62 million balance of the grant and suspended Connecticut’s access to the grant account. Later, the account balance was changed to $4.34 million. To date, EPA has yet to provide DEEP with any explanation regarding the changes to the grant.
“Donald Trump’s irrational fixation on renewable energy is costing all of us. Just like with Revolution Wind, Trump is trying to tank our opportunities to secure clean, affordable energy and keep us dependent on fossil fuels and foreign oil. Congress created the Solar for All program, and EPA awarded these funds so that Connecticut could help low-income residents save millions of dollars on their energy bills. Trump cannot unilaterally reverse course now, and we’re suing to make sure Connecticut gets every penny we are owed,” said Attorney General Tong.
“The Trump EPA’s attempt to cancel the Solar For All program reduces access to clean, affordable solar energy for thousands of Connecticut residents,” DEEP Commissioner Katie Dykes said. “Connecticut’s Solar for All program would help residents, particularly those in multi-family affordable housing, and communities, access the benefits of clean solar energy and the much-needed cost savings it can provide. This program would also help us improve our air quality, which is among the worst in the nation, and make our electric grid more resilient. EPA’s action runs completely counter to our efforts to bring affordable, clean, and reliable energy to Connecticut residents.”
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 3rd. The effect of that move was small, given that EPA had obligated all of the $7 billion for the program nearly a year earlier.
EPA and Zeldin then terminated the program on August 7th. On social media, Zeldin called 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 Tong 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 canceling the program.
The attorneys general of Arizona, Minnesota, and Washington are leading the complaint, which was joined by the attorneys general of California, Colorado, Connecticut, the District of Columbia, Hawaiʻi, Illinois, Massachusetts, Maine, Maryland, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, and Vermont. Also joining the complaint are the governors of Kentucky and Pennsylvania, as well as the Wisconsin Economic Development Corporation.
Separately, Connecticut joined a lawsuit that was filed 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.
The attorneys general of Maryland and Arizona are leading the complaint, which was also joined by the attorneys general in California, Colorado, Connecticut, Hawaiʻi, Illinois, Massachusetts, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, 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.
Assistant Attorney General Jill Lacedonia and Deputy Associate Attorney General Matthew Levine, Chief of the Environment Section are assisting the Attorney General in this matter.
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