A Manhattan-based federal appeals court on Tuesday refused to revive a lawsuit by Connecticut energy customers who claimed the state’s decision to transfer millions of dollars from two dedicated energy funds to the general coffers violated the U.S. Constitution.

A three-judge panel of the U.S. Court of Appeals for the Second Circuit sided with Connecticut Gov. Ned Lamont and state Treasurer Shawn Wooden in finding that the plaintiffs, a group of individuals, energy-efficiency businesses and nonprofits, had no contractual right to control how the funds were spent. Because the transfer simply reallocated state revenue, the plaintiffs were barred by the taxpayer-standing doctrine from bringing their lawsuit, the panel said.

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