GOP Lawmaker Slams EPA’s $20 Billion ‘Radical’ Energy Grants

The funding will go to left-wing interests and seek to enrich China, which dominates the supply chain for renewables, said the lawmaker.
GOP Lawmaker Slams EPA’s $20 Billion ‘Radical’ Energy Grants
U.S. Rep. Cathy McMorris Rodgers (R-Wash.) speaks at a House Republican news conference on energy policy at the U.S. Capitol in Washington, on March 8, 2022. (Kevin Dietsch/Getty Images)
Naveen Athrappully
4/5/2024
Updated:
4/6/2024

Rep. Cathy McMorris Rodgers (R-Wash.) hit out at the Biden administration’s recently announced multibillion-dollar green energy grants, accusing the government of prioritizing the green agenda over American citizens.

On April 4, the U.S. Environmental Protection Agency (EPA) announced $20 billion in grants to eight entities to “deliver clean energy and climate solutions to communities across America.” In a statement on Thursday, Ms. Rodgers criticized the “green slush fund awards,” stating that the Biden administration was prioritizing “its radical rush-to-green agenda over the needs of the American people.”

The grants will end up benefiting “leftwing special interests,” she said. In addition, the Biden administration has not yet explained how these funds will not benefit China, which dominates the supply chain of the renewables industry, the GOP lawmaker stated.

The $20 billion comes from the $27 billion Greenhouse Gas Reduction Fund (GGRF) created under the Inflation Reduction Act.

Ms. Rodgers, chair of the House Energy and Commerce Committee, called on the Senate to consider passing Republican legislation HR 1023—or the Cutting Green Corruption and Taxes Act—which seeks to rescind the $27 billion GGRF.

Out of the $20 billion, three entities will receive funds under the $14 billion National Clean Investment Fund and five will receive funds from the $6 billion Clean Communities Investment Accelerator.

The EPA claims that the fund recipients will “reduce or avoid up to 40 million metric tons of climate pollution per year.”

For every $1 in federal funds received, the eight grant recipients will mobilize almost $7 from private capital, the agency claimed.

More than $14 billion of the $20 billion, or 70 percent of the grants, will go toward “low-income and disadvantaged communities,” the EPA said.

EPA Administrator Michael S. Regan claimed that the fund recipients will “unleash tens of thousands of clean technology projects like putting solar on small businesses, electrifying affordable housing, providing EV loans for young families, and countless others.”

Republicans on the Energy and Commerce committee said in a March 20 committee blog post that the GGRF is ripe for “waste, fraud, and abuse,” pointing out that the $27 billion is almost three times the EPA’s entire fiscal year 2023 appropriated budget.

Benefiting China

A key issue for GOP lawmakers is how the funds will benefit China, which “controls the components needed for renewable energy.

“By mandating technologies that are fully dependent on resources from China, the President is taking taxpayer dollars and using them to line the pockets of one of our greatest adversaries,” they argued.

“China controls the critical minerals supply chain, accounting for roughly 60 percent of the world’s production of rare earth minerals and materials. Nearly half of the U.S. solar panel market share is controlled by China.”

When asked during a committee hearing whether the EPA could guarantee none of the GGRF funds would go to China, an official from the agency refused to give a clear answer, stating that it was “a little more complicated” than a yes or no, the post stated.

Republicans note that the EPA isn’t “well-equipped” to efficiently disburse $27 billion in funds, which the agency is required to do by September 2024.

The EPA Inspector General has also admitted that the quick timeline could lead to abuse and waste of the $27 billion, according to the post.

‘Cronyism and Conflicts’ in EPA Grants

Protect the Public’s Trust (PPT), an NGO that had earlier warned that the GGRF has “massive potential for cronyism and conflicts,” called the EPA’s $20 billion grant announcement their “worst fears” coming true.

One of the fund recipients is the Coalition for Green Capital, which receives $5 billion of the $20 billion EPA allocation. PPT pointed out that David Hayes, “who reportedly ‘assisted in developing and implementing climate-related provisions of the IRA [Inflation Reduction Act]’” serves on the board of Coalition for Green Capital.

Power Forward Communities, which receives $2 billion, has links with Arabella Advisors, “which reportedly spent hundreds of millions of dollars to help elect Joe Biden,” PPT stated. The group is formed by a coalition of five investment groups, including Rewiring America.

“Rewiring America also has numerous former operatives from the Democratic Party and left-leaning special interest groups, such as NARAL [National Abortion Rights Action League], MoveOn.org, and Media Matters for America, and features perennial Democratic candidate for Georgia governor, Stacy Abrams, on its staff,” PPT stated.

Climate United Fund, which has been allocated $6.97 billion, “has extensive connections to nationwide Democrats, including the former chair of the CA Democratic Party, along with several former Clinton and Obama appointees.”

The GGRF is part of the Biden administration’s agenda of transitioning the United States to a green energy economy, reducing the use of fossil fuels in the process. However, this green energy push comes with great cost and can even consume more resources than equivalent fossil fuel projects.
A 2020 report by the Brookings Institution notes that “wind and solar generation require at least 10 times as much land per unit of power produced than coal- or natural gas-fired power plants, including land disturbed to produce and transport the fossil fuels.”

“Additionally, wind and solar generation are located where the resource availability is best instead of where is most convenient for people and infrastructure since their ‘fuel’ can’t be transported like fossil fuels,” it said.

Moreover, EV battery production has been found to be highly damaging for the environment. In order to manufacture a single average EV battery, 250 tons of rock has to be moved and 50 tons of extracted minerals transported. This is typically followed by refining using a coal-powered energy source.

Demand for EV batteries requires more mining of metals like lithium, cobalt, nickel, graphite, and rare earth elements, all of which contribute to considerable emissions and pollution.