Maryland Clean Energy Center v. United States

State recipients of grants under the Solar for All program filed a breach of contract action in the Court of Federal Claims alleging that EPA’s cancellation of the Solar for All program and unilateral termination of grant agreements constituted “a clear, unambiguous, and material breach of the agreements.” The complaint alleged that EPA acted based on an erroneous interpretation of the One Big Beautiful Bill Act as rescinding all appropriations related to Solar for All, not just “unobligated balances.” The plaintiffs contended that this basis for terminating the grants was also erroneous as a matter of contract law because the interpretation did not constitute grounds for termination under the grant agreements’ express terms and conditions. The complaint also asserted a breach of the grant agreements’ implied duty of good faith and fair dealing.