EPA asks appeals court to block injunction against climate grant terminations

EPA on Wednesday asked an appellate court to block a judge’s injunction that halted its termination of almost $17 billion in climate grants.

If the D.C. Circuit Court of Appeals doesn’t stay the injunction before 2 p.m. Thursday, as much as $625 million in Greenhouse Gas Reduction Fund money could be drawn out by the recipients to be spent on projects to reduce greenhouse gas emissions and cover administrative costs.

“Plaintiffs have made clear in demand letters and pending transaction requests that, absent a stay, they will transfer hundreds of millions of dollars in grant funds to external accounts immediately,” the agency wrote. “Once those funds are released, there is no reasonable likelihood the government will be able to recover them, even if it prevails on appeal.”

Judge Tanya Chutkan of the U.S. District Court for the District of Columbia issued an injunction late Tuesday night blocking EPA’s terminations and allowing the grantees access to their accounts again. But she gave EPA until Thursday afternoon to seek a stay before Citibank, which holds the money in its accounts, has to start complying with the recipients’ withdrawal requests.

EPA pointed again to the Supreme Court’s April 4 order allowing the Education Department to move ahead with terminating tens of millions of dollars in grants to states. That decision should guide here, EPA has argued.

Chutkan “refused to heed the Supreme Court’s guidance,” EPA wrote. “Because the district court in this case committed the same error as the district court in [the education grants case], the government is likely to prevail.”

EPA also defended the terminations on the merits, writing that it had “reasonable concerns regarding the award process and lack of transparency and oversight over the resulting agreements.”

Chutkan has not yet released the opinion laying out her legal rationale for the injunction.

The motion requested an administrative stay, which would temporarily block Chutkan's order, to be followed later by fuller briefing and a longer-term decision whether to block Chutkan's injunction.

The grant recipients oppose EPA's request, the agency said in its motion.

In a statement, Climate United Fund CEO Beth Bafford noted her group has been unable to access its funds for two months now, stalling projects across the country.

“We stand firm on the merits of our case and will press forward to deliver on our promises to communities across America,” Bafford said.

In addition, House Democrats on Wednesday slammed the Trump administration for its efforts to terminate the grants.

“This relentless pursuit is little more than a campaign of intimidation,” leaders of the House Sustainable Energy and Environment Coalition said in a statement. “Despite not having any of the facts on its side, EPA clearly hopes that it can run these programs into the ground via delay and coercion.”

The statement was joined by Reps. Doris Matsui of California, Mike Quigley of Illinois, Paul Tonko of New York, Don Beyer of Virginia, Suzanne Bonamici of Oregon, Sean Casten of Illinois, Mike Levin of California, Chellie Pingree of Maine and Debbie Dingell of Michigan.