California Attorney General Rob Bonta and the California Public Utilities Commission (CPUC) have joined a multistate coalition in legal action against the U.S. Environmental Protection Agency (EPA) following the termination of the $7 billion Solar for All Program. The program was designed to support solar energy access in low-income and disadvantaged communities, with the aim of reducing electricity bills and creating union jobs.
Attorney General Bonta stated, “At a time when energy bills are at a record high and only continuing to skyrocket, the Trump Administration is needlessly hampering an industry that can produce safe, reliable, and inexpensive energy. Solar for All was built to deliver relief for all Americans — by lowering energy bills for working families, reducing our carbon footprint, and creating high-quality union jobs that would bolster our economy. We will not let this illegal termination of the Solar for All Program stand. This Administration can try all they want to bend the law, but we will hold them accountable. Every time.”
CPUC President Alice Reynolds commented on the cancellation: “The cancellation of Solar for All funding is not just bad policy, it is illegal. These grants were lawfully appropriated by Congress and intended to help lower energy costs and transition to a clean energy supply. Revoking the funding is a destabilizing decision, but we will continue to progress toward clean energy for all Californians, driving economic growth and creating green jobs for a sustainable future.”
California Energy Commission Chair David Hochschild added, “The Trump Administration’s clawback of the Solar for All program is a direct assault on clean, affordable energy. As public servants, it is incumbent upon us to fight for fairness and justice, and that is what this lawsuit sets out to do. The state’s goal to advance a 100% clean energy future depends on programs like this that make solar and storage affordable for all.”
Congress allocated $7 billion through the Inflation Reduction Act in 2022 for EPA programs targeting greenhouse gas emission reductions in underserved communities. The EPA’s Solar for All Program was set up to distribute these funds via competitive awards issued in 2024, ranging from $43.5 million to nearly $250 million per recipient.
In August, EPA Administrator Lee Zeldin announced on social media platform X that the agency would terminate the program, citing lack of statutory authority—a claim disputed by states involved in the lawsuit.
If upheld, this decision could impact more than 900,000 households nationwide that were expecting credits for low-cost solar energy and potential reductions in their utility bills. In California alone, nearly $250 million was at stake; CPUC was set to receive $200 million specifically aimed at building community solar systems offering monthly discounts—primarily benefiting lower- and middle-income families—and an additional $9 million earmarked for workforce training initiatives.
Two lawsuits have been filed: one in the Court of Federal Claims alleging breach of contract by EPA with each state seeking damages; another in U.S. District Court for the Western District of Washington challenging the legality of terminating funds under federal law and seeking reinstatement of the program.
The coalition includes attorneys general from multiple states as well as governors from Kentucky and Pennsylvania and participation from entities such as the Wisconsin Economic Development Corporation.
A copy of the lawsuit filed in the Court of Federal Claims can be found here. A copy of the lawsuit filed in the U.S. District Court for the Western District of Washington will be available here once filed.
