Colon De Mejias v. Lamont ( 2020 )


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  • 18-3533
    Colon de Mejias v. Lamont
    In the
    United States Court of Appeals
    For the Second Circuit
    August Term, 2019
    Argued: December 20, 2019
    Decided: June 23, 2020
    Docket No. 18-3533
    LETICIA COLON DE MEJIAS, CONNECTICUT FUND FOR THE
    ENVIRONMENT, INC., FIGHT THE HIKE, ENERGY
    EFFICIENCIES SOLUTIONS, LLC, BEST HOME PERFORMANCE
    OF CT, LLC, CONNECTICUT CITIZEN ACTION GROUP, NEW
    ENGLAND SMART ENERGY GROUP, LLC, CT
    WEATHERPROOF INSULATION, LLC, STEVEN C OSUCH,
    ENERGY ESC, LLP, JONATHAN CASIANO, BRIGHT
    SOLUTIONS, LLC,
    Plaintiffs–Appellants,
    V.
    NED LAMONT, IN HIS OFFICIAL CAPACITY AS GOVERNOR OF
    THE STATE OF CONNECTICUT, SHAWN WOODEN, IN HIS
    OFFICIAL CAPACITY AS THE TREASURER OF THE STATE OF
    CONNECTICUT, KEVIN LEMBO, IN HIS OFFICIAL CAPACITY AS
    THE COMPTROLLER OF THE STATE OF CONNECTICUT,
    Defendants–Appellees. *
    *Effective January 2019, Ned Lamont became Governor of the State of Connecticut,
    succeeding Daniel Malloy, and Shawn Wooden became Treasurer of the State of
    Connecticut, succeeding Denise Nappier. Under Federal Rule of Appellate Procedure
    43(c)(2), Governor Lamont is automatically substituted for former Governor Malloy and
    18-3533
    Colon de Mejias v. Lamont
    Appeal from the United States District Court
    for the District of Connecticut
    No. 3:18-cv-817 (JCH) – Janet C. Hall, Judge.
    Before:      WINTER, HALL, and SULLIVAN, Circuit Judges.
    At issue in this case is (1) whether Connecticut’s Public Act 17-2, as amended
    by Public Act 18-81, (the “Act”), which transfers money from the state’s energy
    funds to the general purpose fund, violates the Contract Clause of the United
    States Constitution; and (2) whether the taxpayer standing doctrine bars
    Appellants’ Equal Protection claim. The district court (Janet C. Hall, J.) granted
    summary judgment to Appellees on both grounds, determining that Appellants
    had no contractual right to prevent the transfer of money to the general purpose
    fund and that the Act is an allocation of state revenue, not a tax, so that the
    taxpayer standing doctrine bars Appellants’ claim. We agree. The judgment of the
    district court is AFFIRMED.
    BENJAMIN M. WATTENMAKER (Stephen J. Humes,
    Holland & Knight LLP, John M. Wolfson, Feiner
    Wolfson, LLC, Roger Reynolds, Connecticut Fund
    for the Environment, on the brief), Feiner Wolfson,
    LLC, Hartford, CT, for Plaintiffs-Appellants.
    PHILLIP MILLER, Assistant Attorney General, for
    William Tong, Attorney General for the State of
    Connecticut, Hartford, CT, for Defendants-
    Appellees.
    Treasurer Wooden is substituted for former Treasurer Nappier in this action. The Clerk
    of the Court is requested to amend the caption as above.
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    18-3533
    Colon de Mejias v. Lamont
    PETER W. HALL, Circuit Judge:
    Plaintiffs-Appellants 1 appeal from the judgment of the United States District
    Court for the District of Connecticut (Janet C. Hall, J.), dated October 25, 2018,
    granting summary judgment in favor of Defendants-Appellees, the Governor,
    Treasurer, and Comptroller of the State of Connecticut (collectively, “Appellees”).
    The questions presented on appeal are (1) whether Connecticut’s Public Act 17-2,
    as amended by Public Act 18-81, (the “Act”), which transfers money from the
    state’s legislatively created energy funds (the “Energy Funds”) to the general
    purpose fund (the “General Fund”), violates the Contract Clause of the United
    States Constitution; and (2) whether the taxpayer standing doctrine bars
    Appellants’ Equal Protection claim.
    BACKGROUND
    I. Facts
    In Connecticut, two types of entities provide electricity: investor-owned
    electric distribution companies (“EDCs”) and municipal utilities. There are two
    1 Leticia Colon de Mejias; Connecticut Fund for the Environment, Inc.; Fight the Hike;
    Energy Efficiencies Solutions, LLC; Best Home Performance of CT, LLC; Connecticut
    Citizen Action Group; New England Smart Energy Group, LLC; CT Weatherproof
    Insulation, LLC; Steven C. Osuch; Energy ESC, LLP; Jonathan Casiano; and Bright
    Solutions, LLC (collectively, “Appellants”).
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    EDCs, Eversource and The United Illuminating Company, which serve
    approximately 1.5 million customers. There are seven municipal utilities, which
    serve approximately 125,000 customers.
    The Public Utilities Regulatory Authority (“PURA”) regulates the rates and
    services of the EDCs through the approval of “tariffs.” Each EDC operates
    pursuant to these tariffs, which set forth “rate schedules[,] . . . terms of service,
    rules and regulations of service, and standard template agreements the EDCs use
    in operating their electric distribution systems.” J. App. 99. Individual customers
    then enter into written contracts with the EDCs, in which the customers agree to
    pay PURA-approved rates in exchange for electric service.
    In 1998, the Connecticut General Assembly passed Public Act 98-28, An Act
    Concerning Electric Restructuring (the “1998 Act”), to encourage EDCs to
    restructure their power generation assets to favor more environmentally friendly
    energy production. The 1998 Act directed PURA to impose additional charges on
    electricity sold to EDC customers, which would be used to fund energy
    “conservation and load management programs.” J. App. 92. The 1998 Act also
    established the Energy Funds, which include the Energy Conservation and Load
    Management Fund (the “C&LM Fund”) and the Clean Energy Fund (the “CE
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    Fund”) to be used to implement these programs. Because PURA only regulates
    EDCs, customers of municipal utilities do not pay these charges and are not
    entitled to take advantage the programs the charges are intended to support.
    The C&LM Fund supports programs that provide financial incentives to
    Connecticut customers to reduce energy consumption. See Conn. Gen. Stat. § 16-
    245(m) (describing the purpose and management structure of the C&LM Fund). 2
    The monies in the C&LM Fund are used to help businesses and residential
    customers access renewable energy programs and to “promote electric reliability
    and reduce peak power usage, create jobs, help businesses compete, and reduce
    harmful greenhouse gas emissions that contribute to global warming.” J. App. 93.
    In paying the charges passed along in their electricity bills, EDC customers
    contribute approximately $156 million annually into the C&LM Fund.
    The CE Fund is managed by the Connecticut Green Bank (the “Green
    Bank”), which is a “quasi-public” financial institution that “uses innovative
    financing techniques and market development tools” in partnerships with the
    private clean-energy sector. J. App. 94–95. The Green Bank may use CE Funds for
    approved projects that promote clean energy investments. See § 16-245n(c)
    2Unless otherwise noted, all references to statutes are to the General Statutes of
    Connecticut.
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    Colon de Mejias v. Lamont
    (describing the purpose and management structure of the CE Fund). EDC
    customers pay approximately $27 million annually into the CE Fund.
    Pursuant to sections 16-245m and 245n of the Connecticut General Statutes,
    PURA approves three charges for the Energy Funds: two charges to support the
    C&LM Fund and one charge to support the CE Fund. PURA incorporates these
    charges into the approved rates in the tariffs. In turn, the EDCs pass on these
    charges to their customers. On customer bills, Eversource labels the three charges
    as the “Conservation Charge,” “Conservation Adjustment Mechanism,” and
    “Renewable Energy.” The United Illuminating Company groups the charges as a
    “Combined     Public Benefits     Charge,”   which    includes    charges     for   the
    “Conservation and Load Management Program” and “Renewable Energy
    Investment,” as well as a “Systems Benefit Charge” that is not at issue in this case.
    In 2017, the Legislature passed, and Governor Malloy signed, Public Act 17-
    2 (the “2017 Act”), an emergency state budget act. The 2017 Act transferred $63.5
    million from the C&LM Fund and $14 million from the CE Fund (a total of $77.5
    million) per year to the General Fund for fiscal years 2018 and 2019. On May 15,
    2018, Governor Malloy signed Public Act 18-81 (with the 2017 Act, collectively
    referred to as “the Act”), which reduced the FY 2019 transfer from the C&LM Fund
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    by $10 million (from $63.5 to $53.5 million). “The State actually implemented the
    transfers by directing the EDCs and the Connecticut Green Bank to transfer the
    funds to the State Treasurer for deposit into the General Fund of the State of
    Connecticut . . . . ” J. App. 111. The FY 2018 and 2019 transfers occurred in June
    2018 and 2019, respectively.
    II. Proceedings Below
    In May 2018, Appellants, a group of individuals, energy efficiency business,
    and nonprofit organizations—all electricity ratepayers and EDC customers—sued
    then-Governor Malloy, then-Treasurer Nappier, and Comptroller Lembo in their
    official capacities, claiming that the Act violates the Contract and Equal Protection
    Clauses of the United States Constitution. Appellants argue that the Act violates
    the Contract Clause because it interferes with the PURA-approved tariffs, which
    are incorporated into the service agreement between the EDCs and their
    customers. According to this theory, the payment of the tariff rates gives EDC
    customers a vested right to receive the energy efficiency services and clean energy
    investments that the charges were collected to support (as set forth in the tariffs).
    Transferring money from the Energy Funds to the General Fund reduces the
    funding for green energy initiatives and programs for EDC customers. In addition,
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    Appellants assert that the Act violates the Equal Protection Clause because, by
    transferring money from the Energy Fund to the General Fund, the Act taxes EDC
    customers and not municipal utility customers. The Complaint also includes
    several state law claims that are not at issue here.
    Both parties moved for summary judgment. The district court granted
    Appellees’ motion as to the federal claims and declined to exercise supplemental
    jurisdiction over the state law claims. Regarding the Contract Clause claim, the
    court concluded that the Act does not interfere with any contractual relationship
    between Appellants and the EDCs because their contracts do not grant Appellants
    the right to control how money in the Energy Funds is spent. The court noted that
    language in the tariff explaining the purpose of the Energy Funds was “purely
    descriptive” and “does not create any contractual obligation flowing to the
    plaintiffs from the EDCs.” Colon de Mejias v. Malloy, 
    353 F. Supp. 3d 162
    , 173–74 (D.
    Conn. 2018). It observed that while customers may have had the expectation that
    the charges assessed for the Energy Funds could only be spent on energy efficiency
    and clean energy initiatives, the tariffs provide no legal right to enforce this
    expectation.
    Id. at 174.
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    Regarding the Equal Protection claim, the court granted Appellees’ motion
    for summary judgment on jurisdictional grounds. First, it ruled that the Act was
    not a tax.
    Id. at 177–78.
    It reasoned that the Act did not raise revenue directly but
    instead reallocated money already collected.
    Id. at 178.
    In addition, the court
    determined that Appellants had no property interest in the Energy Funds and,
    therefore, that the Act did not transfer property from Appellants to the State. The
    court concluded that Appellants challenged only the government’s decision
    regarding how to spend the money, a challenge that is barred by the taxpayer
    standing doctrine.
    Id. at 179.
    The court declined to extend the narrow exception to
    the doctrine for potential Establishment Clause violations. Flast v. Cohen, 
    392 U.S. 83
    , 103 (1968).
    Appellants timely appealed from the entry of judgment.
    DISCUSSION
    I. Contract Clause Claim
    “Our review of a district court’s grant of summary judgment is de novo.”
    Globecon Grp., LLC v. Hartford Fire Ins. Co., 
    434 F.3d 165
    , 170 (2d Cir. 2006).
    Accordingly, “[c]ontract interpretation as a question of law is . . . reviewed de
    novo on appeal.” Phillips v. Audio Active Ltd., 
    494 F.3d 378
    , 384 (2d Cir. 2007).
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    Appellants first argue that the district court erred in dismissing their
    Contract Clause claim because the Act impairs their contractual rights to have the
    Energy Funds spent on conservation and clean energy programs. The Contract
    Clause of the United States Constitution provides: “No State shall . . . pass any . . .
    Law . . . impairing the Obligation of Contracts.” U.S. Const. art I. § 10, cl. 1. “[T]he
    general purpose of the Clause [is] clear: to encourage trade and credit by
    promoting confidence in the stability of contractual obligations. Nevertheless, a
    State ‘continues to possess authority to safeguard the vital interests of its
    people . . . .’” U.S. Tr. Co. of N.Y. v. New Jersey, 
    431 U.S. 1
    , 15 (1977) (quoting Home
    Building & Loan Assn. v. Blaisdell, 
    290 U.S. 398
    , 434–35 (1934)). Therefore, “it is well
    settled that the prohibition against impairing the obligation of contracts is not to
    be read literally.” Keystone Bituminous Coal Ass’n v. DeBenedictis, 
    480 U.S. 470
    , 502
    (1987). Rather, “we must respect the wide discretion on the part of the legislature
    in determining what is and what is not necessary” to safeguard the welfare of its
    citizens. U.S. Tr. Co. of 
    N.Y., 431 U.S. at 16
    (internal quotation marks and citation
    omitted).
    Applying these principles, the threshold inquiry in a Contract Clause
    analysis is “whether the change in state law has operated as a substantial
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    impairment of a contractual relationship.” Gen. Motors Corp. v. Romein, 
    503 U.S. 181
    , 186 (1992) (internal quotation marks and citation omitted). Here, we hold that
    no contractual right exists. We thus need not consider the next step of the
    inquiry—the nature of the impairment.
    Federal courts look to both state and federal law to determine whether a
    contract exists and, if it does, whether the Contract Clause protects the agreement.
    Pineman v. Oechslin, 
    637 F.2d 601
    , 604 (2d Cir. 1981). State law determines whether
    an agreement is an enforceable contract, but federal law ultimately resolves
    whether the agreement is protected by the Contract Clause. Id.; see also Gen. Motors
    
    Corp., 503 U.S. at 187
    (“We accord respectful consideration and great weight to the
    views of the State’s highest court, though ultimately we are bound to decide for
    ourselves whether a contract was made.” (internal quotation marks omitted)).
    Here, both parties agree that under Connecticut law contracts exist between
    EDCs and customers in the form of the service agreements which include the
    PURA-approved tariffs. The parties disagree about whether the contracts give
    Appellants “the right to prevent or limit [transfers] from the Energy Funds to the
    General Fund.” Colon de 
    Mejias, 353 F. Supp. 3d at 173
    (citing Keystone Bituminous
    Coal 
    Ass’n, 480 U.S. at 504
    ). As a preliminary matter we conclude that the
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    Connecticut Legislature, through the enactment of sections 16-245m and 245n, did
    not contractually bind the State to spend the money in accordance with the
    statutes, incorporated by reference in the service agreements.
    Absent a legislature’s clear intention to bind itself contractually, we
    presume that “a law is not intended to create private contractual or vested rights
    but merely declares a policy to be pursued until the legislature shall ordain
    otherwise.” Nat’l R.R. Passenger Corp. v. Atchison Topeka & Santa Fe Ry. Co., 
    470 U.S. 451
    , 466 (1985) (quoting Dodge v. Bd. of Educ., 
    302 U.S. 74
    , 79 (1937)). In determining
    whether a legislature created a contractual agreement through a statute, courts
    first look to the language of the statute.
    Id. For example,
    the Supreme Court has
    found evidence of a contractual agreement created by statute when the statute
    defined the contract’s terms, described “the making and canceling” of contracts,
    and used the word “contract” more than twenty times across its various sections.
    Indiana ex rel. Anderson v. Brand, 
    303 U.S. 94
    , 105 (1938).
    Here, sections 16-245m and 245n govern the assessment of charges and the
    use of the money once the EDCs deposit it into the Energy Funds. The statutes
    provide that PURA “shall” assess the charges. §§ 16-245m(b) and 245n(b). Section
    16-245m(b) provides that the EDCs “shall establish” a C&LM Fund, and section
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    16-245m(d)(1) provides that management plans shall be submitted to “implement
    cost-effective energy conservation programs and market transformation
    initiatives.” Section 16-245n(c) directs the Green Bank to expend money to
    “promote investment in clean energy.” Neither statute, however, contains
    language demonstrating a clear intent to bind the State contractually to those
    legislated objectives.
    Unlike in Indiana ex rel. Anderson, the statutes here do not reference contracts
    or an intent to 
    contract. 303 U.S. at 105
    . Without more, the statutory language does
    not overcome the “well-established presumption . . . that the principal function of
    a legislature is not to make contracts, but to make laws that establish the policy of
    the state[,] . . . . [which] are inherently subject to revision and repeal.” Nat’l 
    R.R., 470 U.S. at 466
    . Finding no explicit language to bind the Legislature, we must view
    the decision to amend sections 16-245m and 245n to transfer money from the
    Energy Funds to the General Fund as a change in legislative policy. Therefore, we
    agree with the district court that the relevant statutes cannot form the basis for
    Appellants’ Contract Cause claim.
    Appellants argue that, even if the state is not bound by the contract, the plain
    language of the service contract—specifically the “Explanation of Charges”
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    section—expressly guarantees that the charges for the Energy Funds are “only to
    fund programs” that benefit energy conservation and market transformation
    initiatives, and that any other interpretation produces an absurd result rendering
    other terms of the service contract unenforceable. Appellants’ Br. at 22–23.
    Appellants’ proposed interpretation misunderstands the precise right at
    issue. The service contract between the EDCs and customers is limited in scope to
    providing electricity in exchange for payment of PURA-approved charges. The
    rate an EDC may charge is governed by the service contract, which includes the
    language of the authorizing tariffs. The services contract does not give Appellants
    the legal right to control the expenditure of funds collected because those
    expenditures are governed by statutes, which are subject to change by the
    Legislature. Cf. Stoneridge Apts., Co. v. Lindsay, 
    303 F. Supp. 677
    , 679 (S.D.N.Y. 1969)
    (“The [Contract Clause] is clearly intended to protect benefits and rights of a party
    under a contract and not to interfere with legislation which merely relates to the
    subject matter of the contract.”).
    Furthermore, there is nothing in the language of the tariffs that explicitly
    limits how money is to be spent once deposited into an Energy Fund. See Nat’l R.R.
    Passenger 
    Corp., 470 U.S. at 465-66
    (“[A]bsent some clear indication that the
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    legislature intends to bind itself contractually, the presumption is that a
    law . . . merely declares a policy to be pursued until the legislature shall ordain
    otherwise.” (internal quotation marks and citation omitted)). The Explanation of
    Charges section invoked by Appellants does not contain limiting language
    regarding the use of the collected funds. The express language of the tariffs,
    therefore, does not grant Appellants the right to control transfers from the Energy
    Funds to the General Fund.
    Nor does the EDC contract’s incorporation by reference of the PURA
    decisions give Appellants a right to prevent or limit transfer of money from the
    Energy Funds. These PURA decisions recognize that PURA “performs a limited
    role[,] . . . which consists primarily of ensuring funding for the [Energy Funds].” J.
    App. 213. PURA’s role is to approve the tariffs that govern the collection of the
    charges by the EDCs, while it is the statutes that govern the use of the monies once
    the EDCs deposit it into the Energy Funds. Incorporating the language of the
    statutes and the PURA decisions by reference, therefore, does not create a right for
    Appellants to control transfers from the Energy Funds.
    Finally, Appellants argue that the Act violates the “filed rate doctrine” by
    removing money from the Energy Funds without modifying the existing tariffs.
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    Under the filed rate doctrine, regulated entities must adhere to the rate established
    by the appropriate regulatory agency. § 16-19(a); see Maislin Indus., U.S., Inc. v.
    Primary Steel, Inc., 
    497 U.S. 116
    , 127 (1990); see also Arkansas Louisiana Gas Co. v. Hall,
    
    453 U.S. 571
    , 576 (1981) (“Under [the filed rate] doctrine, no regulated seller is
    legally entitled to collect a rate in excess of the one filed with the [regulatory]
    [c]ommission for a particular period.”). The doctrine also establishes that when
    the entity adheres to this established rate, ratepayers may not challenge these
    approved rates in court. See Wegoland Ltd. v. NYNEX Corp., 
    27 F.3d 17
    , 18 (2d Cir.
    1994) (“Simply stated, the doctrine holds that any ‘filed rate’—that is, one
    approved by the governing regulatory agency—is per se reasonable and
    unassailable in judicial proceedings brought by ratepayers.”).
    Here, Appellants contend that the term “rate” applies not only to the rate
    schedule but also to the entire tariff. Under this interpretation, Appellants claim
    that they had an expectation that the collected funds would be used in accordance
    with sections 16-245m and 245n until a new rate and use was approved by PURA.
    We disagree. The filed rate doctrine guarantees that a tariff’s rate schedules
    conform to relevant regulations to prevent price discrimination. Maislin 
    Indus., 497 U.S. at 126
    . The rates here remain unaltered, and there is no requirement for PURA
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    to approve new tariffs that conform to the Act because, as discussed above, the
    express terms of the tariffs do not include language limiting the use of monies
    deposited in the Energy Funds.
    For the foregoing reasons, we hold that Appellants do not have a contractual
    right to control transfers from the Energy Funds. Consequently, Appellants have
    failed to plead a violation of the Contract Clause.
    II. Equal Protection Claim
    Appellants also argue that the Act assesses a tax on EDC customers but not
    on municipal utilities customers in violation of the Equal Protection Clause. Under
    the “taxpayer-standing doctrine,” taxpayers generally have standing to challenge
    the imposition of taxes but not tax revenue expenditures. See In re U.S. Catholic
    Conference, 
    885 F.2d 1020
    , 1027 (2d Cir. 1989). A tax is “[a] charge, usu[ally]
    monetary, imposed by the government on persons, entities, transactions, or
    property to yield public revenue.” Tax, Black's Law Dictionary (11th ed. 2019); see
    also Nolte v. Hudson Navigation Co., 
    8 F.2d 859
    , 863 (2d Cir. 1925) (defining a tax as
    “an impost levied by authority of the government upon its citizens or subjects for
    the support of the state”). As the district court noted, although the nature and
    context of the payment may vary, a central element of the definition is the transfer
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    of property from citizens to their government. Colon de 
    Mejias, 353 F. Supp. 3d at 177
    . In order for the Act to be a tax, therefore, Appellants must have a property
    interest in the Energy Funds that were reallocated to the General Fund. We turn
    to an examination of that issue.
    Whether a litigant has a “property interest” is a question of state law. See,
    e.g., Bd. of Regents of State Colls. v. Roth, 
    408 U.S. 564
    , 577 (1972). Under Connecticut
    law, property interests require “a legitimate claim of entitlement,” Honulik v. Town
    of Greenwich, 
    293 Conn. 698
    , 723 (2009), such as “(1) the right to use the property;
    (2) the right to earn income from the property and to contract over its terms with
    other individuals; and (3) the right to dispose of, or transfer, ownership rights
    permanently to another party,” A. Gallo & Co. v. Comm’r of Envtl. Prot., 
    309 Conn. 810
    , 838 (2013) (internal citations omitted).
    Appellants have no such claim of entitlement to the monies in the Energy
    Funds. Rather, sections 16-245m and 16-245n provide for government oversight
    and control over those Energy Funds. The authority to approve expenditures from
    the C&LM Fund is vested in the Energy Conservation Management Board and in
    the Commissioner of Energy and Environmental Protection. See § 16-245m(d)(1).
    Similar authority with respect to the CE Fund is vested in the Green Bank. See § 16-
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    245n(c). Appellants have no right to control or use the money in the Energy Funds.
    See A. 
    Gallo, 309 Conn. at 838
    .
    Appellants’ interest here is at most a “unilateral expectation” that the
    Energy Funds will be spent on conservation and green energy programs—not a
    clear entitlement to have the funds expended in that manner. Bd. of Regents of State
    
    Colls., 408 U.S. at 577
    . Accordingly, as Appellants have no property interest in the
    funds, their reliance on Energy Nuclear Vermont Yankee, LLC v. Shumlin is
    misplaced. 
    737 F.3d 228
    , 228–231 (2d Cir. 2013).
    In sum, because the transfer of previously collected revenue from the
    Energy Funds to the General Fund is not a transfer of Appellants’ property to the
    state, it cannot constitute a tax. At its core, Appellants’ argument is that funds
    previously collected for green energy and conservation initiatives will now be
    expended for another use. But taxpayers do not have standing to challenge such
    expenditures. In re U.S. Catholic 
    Conference, 885 F.2d at 1027
    . 3 We therefore hold
    3Appellants do not argue for, and we do not apply, an exception to the taxpayer-standing
    doctrine as we do for challenges to government expenditures that implicate the
    Establishment and Free Exercise Clauses of the First Amendment. See 
    Flast, 392 U.S. at 103
    . Policy judgments, like allocating funds in a budget, are better left to legislatures, and
    the Supreme Court has yet to expand Flast’s narrow exception to respect “the proper—
    and properly limited—role of the courts in a democratic society.” DaimlerChrysler Corp.
    v. Cuno, 
    547 U.S. 332
    , 341 (2006) (internal citation and quotation marks omitted); see also
    id. at 445–46
    (“[B]ecause state budgets frequently contain an array of tax and spending
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    that Appellants have no standing to proceed with their Equal Protection claim and
    affirm the judgment of the district court.
    CONCLUSION
    For the foregoing reasons, the district court’s grant of summary judgment is
    AFFIRMED.
    provisions, . . . affording state taxpayers standing to press such challenges simply
    because [of] their tax burden . . . would interpose the federal courts as virtually
    continuing monitors of the wisdom and soundness of state fiscal administration, contrary
    to the more modest role Article III envisions for federal courts.” (internal quotation marks
    omitted)).
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