Environmental advocacy groups, as well as government ethics watchdogs, are concerned about the possible withholding by federal agencies of billions in funding that was approved for clean energy programs and energy efficiency. Despite court orders requiring the release of this funding, the EPA under the current government is being scrutinized for possibly jeopardizing the initiatives.
Zealan hoover, a retired EPA senior advisor who was responsible for programs authorized by historic legislation such as the Inflation Reduction Act, or IRA, and the Bipartisan Law on Infrastructure, has stated that funding is frozen due to the alleged direction of former president Trump.
Hoover said during a briefing that “communities shoulder the financial burden of projects the federal government has a legal obligation to pay for in advance, but payments are still stalled” despite numerous court orders. This includes community solar energy installations, upgrades to homes’ energy efficiency, as well initiatives such as the clean-school bus program, designed to help school districts transition to low emission vehicles.
Local businesses are feeling the effects of this disruption, as reported furloughs or cutbacks could have a ripple effect. Hoover pointed out that contractors in the area are being given “stop work orders” which stop essential projects, such as solar panel and building insulation upgrades. Due to the slowdown, manufacturers are reducing their workforce and preparing for possible furloughs.
Rhode Island federal court and District of Columbia district courts issued rulings temporarily blocking the administration’s ability to enforce the federal loan and grant freezes.
Jillian Blanchard of Lawyers for Good Government’s non-profit organization, Lawyers for Good Government has highlighted the implications for constitutional law. The courts have ruled that federal fund freezing is unconstitutional, she said. According to her, the executive branch has overstepped their authority when it unilaterally stops programs approved by Congress or breaks binding agreements.
Pennsylvania Governor Josh Shapiro, who echoed these concerns, initiated legal proceedings, citing difficulty in gaining access to $1.2 billion federal funding in support of state projects. Shapiro said that, “even though multiple federal judges ordered the Trump Administration unfreeze the funding, the access to it hasn’t been restored. This leaves my Administration no other choice than to take legal action in order to protect Commonwealth residents and their interests.”
Pennsylvania has many challenges. Delay in funding is preventing heavy industry from reducing emissions, weatherization for low-income home owners, reclamation of damaged coal mine land, and capping abandoned gas wells.
Ohio River Valley Institute estimates these programs can generate approximately 8, 000 jobs in Pennsylvania. This highlights the economic impact that the funding stalling could have.
EPA officials have not responded to comments despite requests. EPA Administrator Lee Zeldin, however, has publicly called on the termination of all financial agreements related the Greenhouse Gas Reduction Fund. This fund is a critical component of the IRA.
In a recent social media posting, Zeldin announced, “We’ll review every penny we spend,” signaling that he will no longer be “irresponsibly” donating large sums to activist organizations on the far left. Greenhouse Gas Reduction Fund – a 20 billion dollar initiative aimed at creating a financing network that would finance community projects relating to energy and transportation with lower carbon emissions. The fund is used to support critical initiatives, such as heat pump installations, building electrification and the deployment of community solar in areas that are underserved.
Hoover rebutted Zeldin’s claims of irresponsible financing, highlighting the “rigorous and robust” vetting processes. He said that funding was done with integrity, and under appropriate supervision.
Through initiatives such as the Clean Communities Investment Accelerator and the National Clean Investment Fund, the EPA has allocated funds to encourage private investment in disadvantaged areas. Reginald Parker is a board member and trustee for Freedmen Green Bank and Trust. He uses this money to install rooftop solar panels and improve energy efficiency in community buildings. Parker says that this funding stimulates private investment, economic growth, and job creation at the local level. Parker warns against withdrawing funding, which could put millions of dollars at risk and threaten hundreds of jobs.