Colon de Mejias v. Malloy

The federal district court for the District of Connecticut rejected constitutional claims against Connecticut’s governor, treasurer, and comptroller in connection with transfers of funds from Connecticut’s Energy Conservation and Load Management Fund (ECLMF) and Clean Energy Fund (CEF) to the State’s General Fund. The transfers from the funds—which receive funds from surcharges on electricity bills—were authorized by laws enacted in 2017 and 2018. The court found no basis for concluding that the contracts plaintiffs had with electric distribution companies for provision of electricity gave them any contractual rights over how the funds in the ECLMF and CEF were spent. The court also dismissed for lack of standing the plaintiffs’ claim that the transfers violated the Equal Protection Act by assessing a tax on electric distribution company customers that did not have a rational relation to a legitimate governmental purpose. The court declined to exercise jurisdiction over the plaintiffs’ state law claims.

A group of individuals, organizations, and companies filed a lawsuit against Connecticut’s governor, treasurer, and comptroller to stop the officials from “sweeping” the Connecticut Energy Efficiency Fund (CEEF) and Clean Energy Fund. The plaintiffs described themselves as “invested in improving the State’s energy efficiency and clean energy economy” and asserted that the defendants were seeking to transfer funds to the State’s General Fund that had been collected from ratepayers and held for certain purposes—including lowering carbon emissions and investing in Connecticut’s Green Bank. The plaintiffs asserted that the diversion of the funds violated the Contracts Clause of the U.S. and Connecticut State Constitutions and the Equal Protection Clause of the U.S. Constitution. The plaintiffs also asserted that the sweep violated the legislation establishing the Green Bank and violated the tax-exempt status of one of the plaintiffs. In addition, they asserted a promissory estoppel claim.