Connecticut environment groups file federal lawsuit against state

Several Connecticut environment groups and companies are taking the state to federal court over the legislature’s decision to remove money from state energy funds in the two-year budget passed in October. The Connecticut Fund for the Environment and 11 other plaintiffs filed a lawsuit in the U.S. District Court Tuesday in order to stop the $165 million sweep.Using the funding for other than its intended purpose is a breach of the contracts clause of the United States Constitution, the plaintiffs argue. Much of the money is raised through a small surcharge on electric bills; because the money is now allocated for different purposes, the plaintiffs say this qualifies as an illegal tax on tax-exempt organizations — such as nonprofits that are ratepayers.