AG James Sues DOE Over Energy Cuts Threatening NY Programs

New York – In a bold legal move, Attorney General Letitia James has led 18 other states and the District of Columbia in a lawsuit against the U.S. Department of Energy (DOE) to block an impending funding cap that threatens state-run energy programs across New York.

The DOE’s new policy, which slashes support for critical administrative costs, risks raising household energy bills and undermining consumer benefits. AG James argues that this move by the DOE endangers states’ ability to sustain these programs, directly impacting consumers’ access to savings and essential services.

“New Yorkers rely on state energy programs for cost-effective home preparation against extreme weather and a transition to clean energy,” said Attorney General James. “The DOE’s cuts are a direct attack on these vital efforts, and we’re taking them to court to protect the funding that supports families across New York.”

The coalition asserts that the DOE’s cap ignores decades-old federal law requiring fair reimbursement rates for state programs. The new rule, which limits indirect costs at 10% of project budgets, would force significant cuts in staffing and operations, potentially halting projects aimed at grid modernization, renewable energy expansion, and resilience against extreme weather.

In New York, the State Energy Program (SEP) formula grant faces a $1.6 million cut due to this cap, according to NYSERDA estimates. The shift to the new budget rule would leave agencies with fewer resources for direct consumer assistance, exacerbating the impact on households and small businesses.

Attorney General James’ lawsuit seeks to vacate the unlawful cap and restore legally required reimbursement rates, ensuring continued support for these crucial programs. “The Department of Energy’s actions are not just shortsighted; they are illegal,” said New York State Energy Research and Development Authority President Doreen M. Harris. “We must stand together to protect our energy infrastructure and the well-being of all New Yorkers.”

RELATED: ATF Salutes FOIA Pioneers in Sunshine Week Tribute

RELATED: Border Crosser Walks Free, Gets One-Way Ticket Home