Gongwer News Service
Attorney General Dana Nessel along with 18 other states and Washington, D.C., filed suit Monday against the U.S. Department of Energy on imposing a funding cap to cut support for state-run energy programs.
This would prevent states from using federal funds in limiting administrative and staffing costs covered by federal energy programs, and the states say the capping of the program could shut down the state programs.
“This is not the first time we’ve seen the Trump administration try to unlawfully take resources away from Michigan and other states – and unfortunately, it probably won’t be the last,” Nessel said in a statement. “Each one of these attempts has put critical programs at risk, from cutting-edge medical and public health research to the implementation of renewable energy and energy efficiency initiatives. Thankfully, we’ve successfully stopped these illegal actions before and plan to do so again to protect Michigan’s vital energy programs.”
Instead, the states are asking to vacate this cap they call “unlawful” and restore the required reimbursement rates for the energy programs.
The law has required federal agencies to negotiate fair reimbursement rates for federally funded, state-run programs, costs never capped before. The policy that came from the department in May would ignore, according to the states, a longstanding practice.
This cap stands at 10% of the project’s total budget, ignoring previously negotiated rates.
The states say the cap would limit resources that the programs rely on and force states to cut staffing and operations.
The new policy violates the federal regulations, according to the states, and that other courts have ruled other “blanket limits” as unlawful and disruptive to programs. The coalition is asking the court to vacate the department’s policy and implementation.
This is the 30th lawsuit Nessel has joined against the administration since January.
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