Recipients of $20 billion in climate law grants are using a conservative legal theory against the Trump administration, asserting in a new court filing that EPA overstepped its authority in trying to cancel their federal awards.

The Friday brief — filed with the U.S. District Court for the District of Columbia — refers to the demise of the Chevron doctrine, which afforded agencies broad deference on policy for decades. Conservatives cheered the Supreme Court last year when it axed the doctrine in its Loper Bright v. Raimondo decision, effectively limiting executive branch power.

Now, three green banking grantees cite that decision to argue that EPA is exceeding its authority in trying to claw back the funds they were awarded under the Greenhouse Gas Reduction Fund program. In doing so, the agency is not adhering to Congress’ directives — or even EPA’s own regulations, the groups argue.

Three nonprofit grantees — Climate United, Coalition for Green Capital and Power Forward Communities — are suing the Trump administration after it froze the funds and then tried to cancel the grants altogether. Five other nonprofits have been caught up in the same EPA actions but have yet to file suit.

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