- Seventeen Democratic AGs, led by Oregon AG Dan Rayfield, filed an amicus brief supporting a challenge to IRS Notice 2025-42, a guidance document that tightened eligibility rules for certain federal clean-electricity tax credits.
- The brief was filed in Oregon Environmental Council, et al. v. IRS, a case in which plaintiffs challenge the IRS’s decision to eliminate the “five percent safe harbor” test for wind and large-scale solar projects, which the AGs argue will decrease the supply of clean energy and increase electricity costs for ratepayers.
- The states argue the notice is arbitrary and capricious because the IRS failed to provide a reasoned justification for the change or consider states’ serious reliance interests in the prior framework. They warn the notice disrupts energy planning and procurement, threatens state revenues and jobs tied to renewables, and makes it harder for states to meet renewable-energy requirements, while increasing reliance on fossil fuels and related environmental and public health harms.
- The AGs urge the court to grant the plaintiffs’ motion for summary judgment and vacate the notice.