WASHINGTON — A coalition of energy and environmental groups, led by the Environmental Defense Fund (EDF), has filed a lawsuit alleging that the Department of Energy’s cancellation of approximately $7.5 billion in clean-energy grants unfairly targeted certain states and undermines critical power sector development.
The suit states that the 321 projects impacted “make buildings more efficient, expand access to zero-emitting electric vehicles (EVs), help local governments reduce barriers to clean, affordable solar energy use for their residents and businesses, and prevent the leaking of methane and other harmful pollution from oil and gas development through solutions that prevent waste and reduce toxins.”
Industry experts warn that halting these initiatives could lead to higher utility costs, stalled access to clean, affordable energy, and vulnerabilities in energy supply chains. According to EDF, utilities in as many as 47 states may already be facing higher costs as a result. Construction and engineering firms engaged in clean-power builds now face significant uncertainty, including suspended or cancelled projects, job losses, and a stalled supply chain.
The legal action highlights the growing interplay between national security policy, industrial strategy, and energy infrastructure. With critical minerals, grid resilience, and electrification high on the current administration’s agenda, the cancellation of energy projects sends ripples through sectors that depend on long-term investments.
The lawsuit urges policymakers to consider the consequences of shifting priorities for the electrical and energy industries and for the country’s critical infrastructure.
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