Maryland Energy Programs Saved from Federal Funding Cuts Following Court Victory

Maryland residents will continue to benefit from essential energy programs thanks to a recent court order secured by Maryland Attorney General Anthony G. Brown. A federal judge has declared the U.S. Department of Energy’s (DOE) attempt to cap funding for state energy programs illegal, a move that threatened to reduce reimbursements for staffing and administrative expenses. This ruling is a significant win for Maryland, safeguarding millions of dollars allocated to vital energy initiatives across the state.

The lawsuit, spearheaded by Attorney General Brown and joined by attorneys general from 18 other states and two governors, challenged a DOE policy that sought to limit reimbursements for indirect (administrative) and fringe (employee benefit) costs to a mere 10 percent of a project’s budget. The coalition argued that this cap violated federal law, ignored pre-established cost rates negotiated by states, and would critically undermine the operational capacity and staffing of state energy agencies. The U.S. District Court for the District of Oregon, in a ruling from the bench, agreed with the states, granting their motion for partial summary judgment and finding the DOE’s policy in violation of the Administrative Procedure Act.

This court decision is expected to protect programs that assist Marylanders in reducing their utility costs and facilitate crucial energy efficiency improvements in homes. The original policy implemented by the Trump administration’s Energy Department aimed to significantly cut these reimbursements, potentially jeopardizing the state’s ability to meet climate goals and foster a healthier environment. Attorney General Brown has affirmed his office’s commitment to defending programs that support these environmental and economic objectives for the benefit of current and future generations of Marylanders.

Among the states that joined Maryland in filing the lawsuit were New York, Minnesota, Colorado, California, Connecticut, Delaware, Hawai’i, Illinois, Maine, Michigan, New Mexico, North Carolina, Oregon, Washington, and Wisconsin. The Governors of Kentucky and Pennsylvania also lent their support to the legal challenge.

Article by Mel Anara, based upon information from the Maryland Attorney General.

---