By Hank Russell
The U.S. District Court for the District of Oregon found that the U.S. Department of Energy’s (DOE) cap on state energy program funding is illegal. In New York, approximately $1.6 million in state energy program funding was at risk due to the DOE’s cap, which would have resulted in the elimination of 26 staff positions, according to the New York AG Letitia James’ office.
In a ruling from the bench on September 30, Judge Mustafa Kasubhai granted the attorneys general’s motion for summary judgment, concluding that the DOE policy violated the Administrative Procedure Act (APA). The core pieces of the act establish how federal administrative agencies make rules and how they adjudicate administrative litigation.
The court said the policy would have slashed reimbursements for staffing and administrative costs and threatened to cut millions of dollars for essential energy programs.
Last month, James led a coalition of 18 other attorneys general and two governors in a lawsuit to block the DOE’s attempt to cap reimbursement of administrative and employee benefit costs at 10% of a project’s budget. The attorneys general argued that DOE’s cap violated federal law, disregarded states’ negotiated cost rates, and would undermine staffing and operations for state energy agencies.
This funding also helps the state ensure that its energy systems can withstand extreme weather or disasters, determine how electricity prices and market rules are set, and run annual practice drills so the state can respond quickly if the power grid or fuel supply is disrupted. According to the lawsuit, without full federal support, the state could have potentially had to cancel or delay programs that enable it to meet energy demand while prioritizing affordability.
Joining James in this lawsuit, which was co-led by the attorneys general of Colorado, Minnesota, and Oregon, are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.
“Once again, my office has successfully stopped the federal government from illegally cutting off funding that New Yorkers rely on,” James said. “These programs help families save money on their energy bills, prepare their homes for extreme weather, and build a more resilient future. DOE’s cap on funding is unlawful and dangerous, and today’s ruling ensures that New York will continue to get the resources it needs to deliver cleaner, safer, and more affordable energy for our communities.”
Long Island Life & Politics reached out to the U.S. Energy Department, but did not respond as of press time.