House Democrats Seek Investigation of DOE’s Rumored Funding Cuts

WASHINGTON — House Democrats are calling for an investigation into the Department of Energy’s purported plans to claw back or cancel previously announced funding awards and contracts for clean energy projects in predominantly blue states.

In a letter to Sarah Nelsen, acting inspector general for the department, Rep. Rosa DeLauro, D-Conn., and her colleagues express dismay at reports by The Los Angeles Times, Reuters and others that the DOE is preparing a lengthy list of planned cuts that specifically target states and districts led by Democrats.

“The politicization of financial assistance and contract awards is deeply concerning, as it could harm not only the progress of critical energy initiatives but also erode public trust in the impartiality of federal agencies,” wrote DeLauro, the highest ranking Democrat on the House Appropriations Committee, and her colleagues.

“As a nation, we must ensure that such decisions are made based on objective criteria rather than political considerations,” they wrote.

The other signers of the letter include Reps. Marcy Kaptur, D-Ohio, ranking member of the Appropriations Energy and Water Development Subcommittee; Frank Pallone Jr., D-N.J. ranking member of the House Energy and Commerce Committee; Kathy Castor, D-Fla., ranking member of the House Energy and Commerce Energy Subcommittee; Zoe Lofgren, D-Calif., ranking members of the House Science, Space, and Technology Committee; and Deborah Ross, D-N.C., ranking member of the House Science, Space, and Technology Energy Subcommittee.

The lawmakers said they grew concerned about the situation after news outlets began reporting that the Energy Department could pull funding from hundreds of projects focused on solar power, heat pumps, battery storage and renewable fuels as early as this week.

Most of that reporting is said to be based on internal department documents leaked to the various news organizations.

If true, the cuts could affect as many as 262 projects greenlighted by the DOE’s Office of Energy Efficiency and Renewable Energy.

According to The Los Angeles Times, roughly 80% of these projects are located in states that did not go for Trump in the 2024 presidential election.

Also reported to be in cost-cutters’ sites are nearly two dozen projects receiving federal support through the DOE’s Office of Clean Energy Demonstrations.

These include several efforts being undertaken under the auspices of the Regional Clean Hydrogen Hubs Program intended to accelerate the development of hydrogen as an energy feedstock that can eventually replace fossil fuels.

Of the seven states and regions selected to participate in the $7 billion federal hydrogen project, the four set to be gutted are in primarily Democratic areas, The Los Angeles Times reported.

According to the newspaper, the hydrogen incubators on the kill list include facilities in California, Delaware, Illinois, Indiana, Michigan, Minnesota, Montana, Ohio, Oregon, New Jersey, Pennsylvania, Texas, Washington State, and West Virginia. 

The letter from the House follows a similar communication from Senate Democrats who are demanding the Energy Secretary Chris Wright stick to his promises that congressionally approved funds will be delivered to the projects.

The letter was signed by Sens. Martin Heinrich D-N.M., the ranking member on the Senate Energy and Natural Resources Committee, and Patty Murray. D-Wash.

They and 25 of their colleagues who also signed the letter, want Wright to brief them on what’s being cut and why.

“We are deeply troubled by recent news reports that the Department of Energy is creating a ‘hit list of clean energy projects’ to ‘wipe out’ for being inconsistent with the president’s priorities,” Heinrich and Murray wrote.

“This list reportedly includes hydrogen hubs and carbon capture, critical mineral, and battery storage projects that have already received grant and loan funding from the Inflation Reduction Act, the Bipartisan Infrastructure Law and annual appropriations bills,” they said.

As for the House members, they maintain that “competitive-based awards ensure that federal funds are allocated to projects that offer the best value to the taxpayers, based on merit and the technical and financial qualifications of applicants.

“However, the recent comprehensive portfolio review and the potential resulting cancellations of various awards and contracts appear to violate this principle by undermining the fairness of the process,” they continued. “It appears that some projects previously deemed worthy of funding are being cancelled without adequate justification, and in some cases, with no clear rationale other than administrative convenience.”

The Well News has reached out to the Department of Energy for comment.

In an earlier statement, a spokesman for the department said its review is ongoing and that speculation about such a list is just that, “speculation.”

Dan can be reached at [email protected] and @DanMcCue