Arizona and 21 other states are suing the EPA over its decision to cancel the Solar for All program. The plaintiffs argue the agency exceeded its authority by voiding previously awarded grants, including a $25 million grant for the Hopi Tribe and a total of $156 million designated for Arizona. State officials warn the loss of this funding will limit access to clean energy, drive up energy costs, and make it harder to meet surging electricity demand as utility rates rise and data center electricity use grows.
The lawsuits center on the EPA’s interpretation of H.R. 1, a federal tax and spending package that rolled back several clean energy initiatives. Arizona leaders contend that Congress intended to rescind only unallocated funds, not grants that had already been awarded. They argue the cuts will accelerate the end of the federal residential solar tax credit and cost Arizona billions of dollars and thousands of jobs tied to clean energy projects.
