Environmental and consumer protection enforcement action. Oregon Attorney General Dan Rayfield led a coalition of 16 states in filing an amicus brief supporting a lawsuit against the IRS. The challenge contests a new IRS rule that removes a key pathway (5% investment test) for wind and solar projects to qualify for federal clean energy tax credits. The states argue the rule is unlawful, arbitrary, will increase energy costs for families and businesses, and undermine state clean energy goals and investments.
The states are asking the U.S. District Court for the District of Columbia to strike down the new IRS rule and restore the previous, decade-old standards that allowed projects to qualify for tax credits by either starting construction or investing at least 5% of project costs.
In-house legal teams should review vendor, customer, and partnership agreements in the energy and project development sectors where federal clean energy tax credits are a material economic component. Focus on clauses addressing representations and warranties regarding tax credit eligibility, compliance with evolving regulatory requirements, force majeure or changed law provisions, and conditions precedent tied to qualification for tax incentives. Given the IRS rule eliminating the 5% investment test for wind and larger solar projects, contracts may require amendments to reflect new eligibility pathways, renegotiation of economic terms dependent on this pathway, or inclusion of mechanisms to address future regulatory shifts that could impact project viability and return on investment.
Entity
Internal Revenue Service
Also known as: IRS
Industry
OtherOfficial Press Release
https://www.doj.state.or.us/media-home/news-media-releases/ag-rayfield-leads-coalition-supporting-challenge-to-irs-energy-policy-that-could-raise-costs/
RETC 4400 PLD Amicus Brief in Support of Plaintiffs Motion f
https://www.doj.state.or.us/wp-content/uploads/2026/02/RETC-4400-PLD-Amicus-Brief-in-Support-of-Plaintiffs-Motion-for-Summary-Judgment.pdf
Oregon Attorney General Enforcement Page
https://www.doj.state.or.us/consumer-protection/
"challenging a new Internal Revenue Service (IRS) rule"
"Attorney General Dan Rayfield led a coalition of 15 other states today in supporting a lawsuit"
"The states argue the rule is unlawful, arbitrary, and harmful to consumers."
"The states are asking the court to strike down the rule and restore the previous standards"
The provided press release is a media release from the Oregon Department of Justice announcing a multistate press conference of attorneys general from Oregon, California, Washington, Nevada, and New York advocating for increased state resources to address antitrust enforcement gaps following reduced federal oversight. No privacy-related enforcement actions, violations, penalties, or remedies are described in the document.
Oregon Attorney General Dan Rayfield led a 24-state coalition in a lawsuit challenging the Trump Administration’s tariffs imposed under Section 122 of the Trade Act of 1974. The U.S. Court of International Trade granted summary judgment to the states, ruling the tariffs illegal as they did not meet the statutory requirement of “large and serious balance-of-payment deficits.” The court invalidated the 10 percent tariffs on most global products, barring their enforcement.
Consumer protection and civil rights lawsuit filed by Oregon AG and 20 other states against the U.S. Department of Agriculture over unlawful funding conditions that coerce states into complying with policies unrelated to nutrition programs. The conditions relate to immigration, DEI, and gender identity, and are alleged to violate the Spending Clause and Administrative Procedure Act. The suit seeks to block these conditions to protect billions in funding for programs like SNAP, WIC, and school lunches that serve vulnerable populations.
Health enforcement action: Attorney General Rayfield led a coalition of 22 states and D.C. to secure a federal court order blocking the Trump Administration from threatening to cut off Medicare and Medicaid funding to healthcare providers that offer gender-affirming care to youth with gender dysphoria. The court ruled the administration's actions unlawful, protecting access to care and upholding the right to make personal healthcare decisions.
Antitrust enforcement action where Oregon AG filed a lawsuit to block the $6.2 billion merger of Nexstar and Tegna, alleging it violates Clayton Act Section 7 by substantially lessening competition in broadcasting, which could harm local news and raise consumer prices.
Environmental enforcement action where Oregon Attorney General Dan Rayfield, along with a coalition of states and cities, filed a lawsuit challenging the EPA's unlawful rescission of the 2009 Endangerment Finding on greenhouse gas emissions. The challenge argues that the rescission ignores scientific evidence and legal precedent, threatening public health and environmental protections.