A new cap on federal reimbursement of state energy programs threatens energy efficiency and energy grid resiliency itself, according to a lawsuit filed by Washington’s attorney general along with 17 other states and the District of Columbia. 

The U.S. Department of Energy announced in May it would begin limiting reimbursement of indirect costs of federally-funded state energy projects to 10% of a total project’s budget, according to a release.  

That would cover a fraction of those costs for Washington state, attorney general Nick Brown said, putting numerous efforts at risk, from wildfire mitigation planning with utilities to energy efficiency programs that benefit consumers, businesses and local governments. The lawsuit is asking a judge to vacate the Department of Energy’s new policy and reinstate prior funding agreements. 

“The administration’s energy policies to date only threaten to make our power sources dirtier, less reliable, less efficient and more expensive,” Brown said in a statement. “This policy will ultimately hurt consumers in every state, not just those in our coalition.” 

Previously, the department negotiated its funding agreements with individual states for those projects so that direct and indirect expenses, which include administrative and staffing costs, are paid for. The new policy ignores those prior agreements, which Brown and his fellow plaintiffs argue violates federal regulations to honor funding arrangements set between the states and federal government.