Hawaii Joins Coalition to Fight Federal Solar Grant Cancellation, Impacting Local Projects

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Hawaii is among nearly two dozen states suing the Trump administration over the cancellation of a $7 billion federal grant program designed to boost solar energy access in low-income communities. The move threatens several community solar projects in Hawaii, potentially impacting local businesses and residents.

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Hawaii has joined a multi-state lawsuit challenging the Trump administration's decision to rescind a $7 billion grant program focused on expanding solar energy in low-income communities staradvertiser.com. This legal battle stems from the EPA's plan to claw back funding awarded through the Solar for All program, a key initiative of the 2022 Inflation Reduction Act. The program aimed to help low- and moderate-income households access solar power, but the EPA now deems it a "boondoggle," citing bureaucratic inefficiencies and recent legislation as justification for the cancellation san.com.

The impact on Hawaii is significant. Hawaii Public Radio reports that approximately $62 million allocated to Hawaii is now at risk, potentially jeopardizing several community solar projects across the islands of Hawaii, Maui, Molokai, and Oahu. These projects were designed to provide low-cost solar energy to thousands of households, including renters and those in multi-unit buildings who may not own their roofs.

The Hawaii Green Infrastructure Authority (HGIA) is working alongside the state's Attorney General's office to find a solution and reinstate the federal funding hawaiipublicradio.org. Gwen Yamamoto-Lau, the HGIA Executive Director, highlighted that these projects are critical for vulnerable members of the community to break free from fossil fuels.

The situation in Hawaii mirrors challenges in other states. The Oregon Department of Energy is also challenging the EPA's decision to terminate an $87 million solar grant, arguing that it violates a legally binding agreement and could cause “irreparable harm” to Oregonians opb.org. This underscores a broader trend of states fighting to preserve funding for renewable energy initiatives. The outcome of the lawsuit will have a ripple effect, impacting local solar businesses, investors, and homeowners who had planned to participate in these projects, and ultimately, the state's renewable energy goals.

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