The Department of Energy is rescinding an effort to cap funding for state energy programs and dropping its appeal of a court verdict that found the move was illegal.
The move Thursday came as a victory to the 19 Democratic-led states and the District of Columbia who sued the agency last fall over the move to limit the use of its grant funding for “indirect costs” such as buildings, equipment and personnel.
A federal judge last September sided with the states, finding the DOE policy violated the Administrative Procedure Act.
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DOE had appealed, but its decision to drop the appeal preserves the states’ win and brings the case to a close, said New York Attorney General Letitia James.
