- A group of 18 Democratic AGs and the Governors of Pennsylvania and Kentucky sued the U.S. Department of Energy (DOE) to block a new DOE policy that caps funding for indirect costs and fringe benefits for state-run energy programs.
- Indirect costs include shared operational expenses, like the costs of operating a facility or funding staff who work across multiple projects. Fringe benefits refer to staff costs apart from salaries, like health insurance and retirement contributions.
- In the complaint, the plaintiffs argue that these basic administrative and staffing costs have historically been uncapped, that the DOE policy violates federal regulations that require agencies to honor pre-negotiated indirect cost rates between states and the federal government, and that similar funding caps have recently been struck down by federal courts. Plaintiffs allege that the DOE policy violates the Administrative Procedures Act because it is contrary to the law, and arbitrary and capricious.
- The plaintiffs seek declaratory and injunctive relief, and attorneys’ fees and costs, among other relief.