Lucky Shoals Community Association, Inc. v. EPA

An organization that received an approximately $20 million grant under the Inflation Reduction Act’s Environmental and Climate Justice Block Grant program filed a lawsuit in the federal district court for the Northern District of Georgia challenging the U.S. Environmental Protection Agency’s purported termination of the entire grant program and refusal to disburse awarded grants. The grant awarded to the plaintiff was for acquisition of land for “a green campus for the community of Norcross”; for offering emergency and clean energy job training; and for services such as air, water, and energy assessment and remediation. The complaint asserted that the federal defendants’ actions were arbitrary and capricious in violation of the Administrative Procedure Act (APA) and that the defendants’ actions exceeded their authority, were contrary to law, and failed to observe required procedures in violation of the APA. The plaintiffs also asserted separate claims that the defendants’ actions were ultra vires and violated separation of powers. The plaintiff sought declaratory and injunctive relief, including an injunction preventing the defendants from terminating the grant program and from impeding or terminating the plaintiff’s access to awarded funds.