Democratic AGs Sue Over Access to Clean-Energy Funds

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  • A group of four Democratic AGs sued the EPA and Citibank, N.A., as a financial agent for the federal government, alleging that they wrongfully denied the states access to funds appropriated by Congress for clean-energy projects in violation of the Administrative Procedures Act, the separation of powers, the Spending Clause, and the Tenth Amendment, among other claims.
  • In the complaint, the AGs allege that the EPA unlawfully sought to block the states’ green banks—public or quasi-public entities that provide financial services to pollution-reducing projects in their states—from accessing $5 billion made available by Congress as part of the Inflation Reduction Act of 2022 and awarded by the EPA to fund clean-energy projects.
  • The AGs seek declaratory and injunctive relief, damages, and attorneys’ fees and costs, among other relief.
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