Oregon is determined to reclaim $86.6 million in funding for solar energy projects that was revoked by the Trump administration. This funding was originally intended to provide significant reductions on electric bills for low-income and marginalized communities throughout the state.
The Oregon Department of Energy has submitted a formal challenge to the U.S. Environmental Protection Agency (EPA), urging the agency to reverse its decision to cancel the grant for the Solar for All program. This program was previously awarded under a legally binding agreement, and the state is requesting the release of the promised funds.
Last July, Oregon was allocated this funding as part of a nationwide $7 billion Solar for All initiative, established under President Joe Biden’s Inflation Reduction Act. This act aimed to expand solar energy access, lower greenhouse gas emissions, and foster renewable energy job growth.
However, the EPA notified Oregon and other states of the funding termination following the introduction of President Donald Trump’s Big Beautiful Bill. This legislation rescinded the Greenhouse Gas Reduction Fund and, consequently, the Solar for All funding, which was earmarked for rural and economically disadvantaged areas, as well as tribal communities unable to afford solar technology.
Oregon’s legal appeal, filed by Energy Director Janine Benner, asserts that the EPA’s cancellation violated Trump’s law. The state argues the law “rescinded only unobligated balances from the Greenhouse Gas Reduction Fund and preserved funds already awarded to grantees,” and that the EPA’s action was “arbitrary, capricious, and not supported by substantial evidence.”
The EPA has stated that the law “rescinds both the authority and the appropriated funds to run the Solar for All program,” without providing further explanation for terminating funds already awarded.
This move is part of a broader attempt by the Trump administration to shift focus from clean energy initiatives to traditional gas and oil production, consistent with several executive orders. EPA Administrator Lee Zeldin has criticized the Solar for All program as a “green slush fund” and “a boondoggle.”
In Oregon, the $86 million was intended to be distributed among several entities. The Oregon Department of Energy, the Energy Trust of Oregon, and the Bonneville Environmental Foundation were set to manage the funds to develop solar projects across the state.
A significant portion, approximately $29 million, was designated for rooftop solar installations on single-family homes with minimal to no upfront costs. Additional funds were allocated for rebates on solar installations in multifamily buildings and to develop a solar workforce grants program aimed at job creation and training.
The planned investments would have resulted in the installation of around 1,800 solar systems in single-family homes, 44 solar systems on apartment complexes, and the creation of 19 battery storage projects benefiting over 1,700 low-income households.
Energy Trust of Oregon would have received $15 million to support these installations and foster the development of additional community solar projects. These efforts are part of Oregon’s Community Solar Program, which enables private developers and nonprofits to provide clean energy options to residents.
The program aimed to offer over 4,000 community solar subscriptions, granting at least 20% savings on bills for low-income households, and allowing renters and others unable to install solar to participate.
Betsy Kauffman, renewable energy sector lead at the Energy Trust, emphasized the program’s potential to make energy more affordable for low-income Oregonians, particularly in rural areas and other communities disproportionately burdened by energy costs.
The Bonneville Environmental Foundation planned to use $11 million to facilitate similar incentives and support community solar projects for municipal and consumer-owned utilities in Oregon.
The termination of the federal Solar for All funding does not impact Energy Trust’s Portland Solar for All program, which is supported by a $25 million grant from the Portland Clean Energy Benefits Fund. This local initiative aims to install solar panels benefiting approximately 1,345 low-income Portland households.
The EPA has a 15-day window to acknowledge Oregon’s dispute and 180 days to reach a decision, according to Jenny Hansson, spokesperson for the Oregon Department of Justice.
Original Story at www.oregonlive.com