The solar panel giant SolarCity Corp. filed suit on Monday against the U.S. Department of Justice and the Department of Energy, accusing them of violating a solar-panel tax that applies to most U.N. climate change agreements.
SolarCity said it plans to ask the courts to halt the enforcement action against the company.
The solar panel tax, known as the UBI, was enacted under the Paris climate agreement in December 2016.
It was supposed to raise about $2 billion per year, but the tax was largely ignored by the United States, which does not have a formal climate agreement.
The company, however, has complained about the tax since the beginning, and the company says it is seeking to make the tax a legal defense.
In a press release, SolarCity said that since the tax took effect, it has lost nearly $3 billion in annual revenue, and is on track to lose another $3.6 billion this year alone.
The company has also filed a federal lawsuit against the Trump administration.
Solar City has long argued that the UBA is a loophole that encourages companies to operate in the U-shaped U-shape to avoid the tax.
It has also said that the tax does not directly harm solar power because solar customers would receive a lower percentage of their energy costs if they were to pay the UBS tax.