California Infrastructure & Economic Development Bank v. Citibank, N.A.

Four state “green banks” that were subawardees supported by Coalition for Green Capital’s grant under the Greenhouse Gas Reduction Fund filed a lawsuit against the U.S. Environmental Protection Agency (EPA), the EPA Administrator, an EPA Acting Deputy Administrator, and Citibank, N.A. in the federal district court for the District of Columbia on March 19. The lawsuit challenged "EPA's unlawful efforts to impede the flow of billions of dollars in duly appropriated, awarded, and disbursed funds." On March 25, the court consolidated this case with three cases brought by nonprofit financial institutions that also were recipients of funds. The state green banks asserted that the Trump administration’s actions violated the Administrative Procedure Act because they were contrary to law under the Inflation Reduction Act and the Impoundment Control Act and were ultra vires, were contrary to the Uniform Grant Guidance regulations, and were arbitrary and capricious. In addition, the green banks asserted an equitable ultra vires claim to enjoin the federal agency defendants from taking actions outside their authority. They also asserted separation of powers claims, alleging that the defendants’ conduct usurped legislative functions and violated the Appropriations Clause, Spending Clause, Legislative Vesting Clause, and Take Care Clause. They also alleged that the defendants’ actions to freeze the state green banks’ accounts violated the Spending Clause and the Tenth Amendment. Against Citibank they asserted breach of contract, specific performance, conversion, and replevin claims.