Oregon — Oregon Attorney General Dan Rayfield and 22 other plaintiffs have filed suit against the U.S. Environmental Protection Agency (EPA) and Administrator Lee Zeldin, accusing the agency of illegally terminating the $7 billion Solar for All program—a federal initiative aimed at lowering energy costs and pollution through solar energy in low-income and disadvantaged communities.
The lawsuit, filed in U.S. District Court for the Western District of Washington, argues that the EPA violated the Administrative Procedure Act and the U.S. Constitution’s Separation of Powers Doctrine when it abruptly ended the program and clawed back awarded funds. A separate complaint filed in the U.S. Court of Federal Claims seeks damages for what states allege was a breach of grant agreements.
Created in 2022 under the Inflation Reduction Act, the Solar for All program directed EPA to award grants to states and organizations to deploy solar projects. By August 2024, all funds had been awarded. Oregon’s share was expected to help more than 900,000 households nationwide, including thousands in Oregon, save over $83 million on energy costs through solar installations and community projects.
EPA terminated the program on August 7, 2025, citing lack of statutory authority after Congress passed President Trump’s “One Big Beautiful Bill Act” in July. That legislation rescinded only unobligated funds—meaning the EPA still had legal authority over funds already granted, according to the plaintiffs.
“Working families are already feeling the strain of rising energy costs – and blocking Oregon’s clean energy programs only makes that worse,” said Attorney General Rayfield. “This funding wasn’t just about protecting the environment; it was about lowering bills, creating jobs, helping communities transition to cleaner, more affordable power.”
Joining Oregon in the lawsuit are Arizona, California, Colorado, Connecticut, Hawai‘i, Illinois, Massachusetts, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Vermont, Washington, and the District of Columbia, along with the governors of Kentucky and Pennsylvania and the Wisconsin Economic Development Corporation.
Oregon’s Department of Energy had planned to use the federal funding to expand low- and no-cost solar programs for single-family homes, create rebates for apartment buildings, and provide technical assistance for community solar projects, including those serving consumer-owned utilities.
The plaintiffs are asking the court to reinstate the Solar for All program, restore access to previously awarded funds, and award damages for the federal government’s breach of contract.
About the Author
