Court finds DOE clean energy grant cancellation unconstitutional
The U.S. District Court of the District of Columbia has ruled that the U.S. Department of Energy’s (DOE) October cancellation of more than $7.5 billion in clean energy grants is “unlawful,” violating two separate Constitutional amendments.
In total, the cancellation amounted to $7.56 billion, affecting 315 financial awards and 223 projects around the U.S. Many of the grants were part of the Solar For All program, instituted as part of the Inflation Reduction Act in 2022.
In his Jan. 12 final written decision on the case, officially filed as ‘City of St. Paul, Minnesota, et al. v. Christopher Wright,’ district judge Amit P. Mehta notes that “the terminated grants had one glaring commonality: all the awardees (but one) were based in states whose majority of citizens casting votes did not support President Trump in the 2024 election.”
The decision also states that Secretary Wright admitted during the proceedings that the political leaning of any given state was a “primary reason” for the selection of DOE grand terminations.
“The court concludes that Defendants’ grant-termination decisions violate the Fifth Amendment. The court therefore enters judgment in favor of Plaintiffs on the equal protection claim but dismisses the First Amendment claim.”
Mehta added that the presence of political consideration in agency action does not inherently mean that a defendant has violated the Fifth Amendment’s equal protection clause. However, Walker and his fellow defendants “freely admit that they made grant-termination decisions primarily—if not exclusively—based on whether the awardee resided in a state whose citizens voted for President Trump in 2024.” On that basis, the case is considered unique and violate both the Fifth Amendment and First Amendment.
DOE, renewable energy organizations respond
To conclude his ruling, Mehta states that the parties must file a Joint Status Report by Jan. 16, indicating “whether Plaintiffs still seek permanent injunctive relief and whether Plaintiffs intend to move for attorney’s fees.” Further grant refusal by the DOE and the Trump Administration could potentially bring hundreds of follow-up lawsuits from various plaintiffs before the end of the year.
In a recent email statement, the DOE has indicated it may intend to hold firm, despite the ruling.
“We disagree with the judge’s decision and stand by our review process which evaluated these awards individually and determined they did not meet the standards necessary to justify the continued spending of taxpayer dollars,” says a DOE spokesperson. “The American people deserve a government that is accountable and responsible in managing taxpayer funds.”
Conversely, renewable energy organizations around the country are already celebrating the ruling. Joel Levin, executive director of EV transition nonprofit Plug In America said in a statement that his firm is “relieved” to hear the court’s recent decision, and is looking forward to receiving future funding.
“We look forward to continuing our important work of educating drivers and dealers about the benefits of electric vehicles,” Levin says. “During this current affordability crisis, consumers need choices that help reduce their household transportation costs, reduce unhealthy pollution, and eliminate our reliance on foreign oil.”
