The top Democrat on the Senate Energy and Natural Resources Committee declared Wednesday that Energy Secretary Chris Wright has “effectively stolen funding for fully legally compliant energy projects” — and he’s getting his state’s attorney general involved.
Heinrich’s comments are part of a chorus of condemnation against the cuts from Democrats. Republicans have also expressed concern about the future of ventures in their states.
“I am apoplectic that this administration thinks that they can cancel fully executed contracts,” Sen. Martin Heinrich (D-N.M.) said in an interview Wednesday. “That is not legal and we should never accept it as normal.”
He also expressed “utter disappointment” that Wright gave Senate Democrats no warning the administration was on the verge of cancelling nearly $8 billion in green energy grants, mostly in blue states, even when a small group of them had lunch with him shortly before the news broke.
“To say my level of frustration is high with the secretary right now would be an understatement,” Heinrich said in a phone interview.
“I think the problem here is that these were by and large — the vast majority of these — were not conditionally approved projects. Most of them were fully executed contracts.”
The New Mexico Democrat encouraged other colleagues to also talk to their state AGs: “This represents breach of contract.”
Heinrich’s remarks follow reporting about tensions within the administration about project cuts. Beyond the $8 billion, a list making the rounds on Capitol Hill and elsewhere in Washington suggested many more cancellations.
On Tuesday, several staffers and lobbyists told POLITICO’s E&E News that Wells Griffith, a DOE undersecretary, was no longer on the job but had yet to be fired.
Sen. John Hickenlooper (D-Colo.) — who was also at the lunch with Wright — said he thought the secretary has been in a “tough spot.”
Hickenlooper said the senators left with the impression many of the cancellations might not happen at all. “Then all of a sudden they came out the next day,” said Hickenlooper. “That’s got to make him feel a little awkward.”
White House Office of Management and Budget Director Russ Vought first announced the cuts last month. He called the grants “Green New Scam funding.”
Asked about Heinrich’s accusations of illegality, a DOE spokesperson said Wednesday: “Secretary Wright was clear: The Energy Department has conducted a thorough, case-by-case review of every award. The Secretary’s May memorandum formalized that process, establishing clear standards to safeguard taxpayer resources. The 321 awards terminated failed to meet the standards required to justify continued taxpayer investment and would have led to less reliable, more expensive energy.”
Republicans mobilize
Heinrich said he hasn’t heard back from Wright since their lunch. Key Senate Republicans say they’re still in talks with DOE — and taking solace in small victories.
Senate Environment and Public Works Chair Shelley Moore Capito (R-W.Va.) expressed cautious optimism that her state’s ARCH2 hydrogen hub, slated to receive $925 million, might be spared.
“Uncertainty probably is not the best word at the moment — we’re moving forward,” Capito said. “The funds haven’t been cut yet, so we’re gonna take that as a win.” She also said she signed a letter to Wright expressing concern; her office did not make it public.
Even Sen. Steve Daines (R-Mont.) — whose state’s PNW hydrogen hub was part of the initial list of projects that have already received official cancellation notices — said he felt the administration was receptive.
“We have a hydrogen hub out in Montana, so I’m voicing that input back to the administration,” Daines said. “I feel like we’re always listened to. I can’t tell you how many times we pick up the phone and give them feedback.”
Sen. Jon Hoeven (R-N.D.) said: “I’m on the Energy Committee, and we have a very good relationship with DOE; we think that Chris Wright’s doing a great job. That’s how I approach it, and I would think that’s how others approach it.”
Reporters Amelia Davidson, Garrett Downs and Andy Picon contributed.
This story also appears in Energywire.
