Energy Department’s Cap on Financial Assistance Blocked by Judge

The Department of Energy failed to shake states’ lawsuit over its decision to limit financial assistance covering state agencies’ indirect costs after a federal judge ruled it was a definitive, final action subject to litigation.

Judge Mustafa T. Kasubhai of the US District Court for the District of Oregon on Monday scrapped the new policy, which cuts off funding for state energy agencies’ staff pay or facility operations, as it isn’t subject to an agency discretion exception under the Administrative Procedure Act.

The order granted partial summary to the states in declaring the “Policy Flash” violated the DOE’s regulatory framework, ...