Congress Targets EPA Grant Allocations for Oversight

22

TL/DR –

Congressional Republicans are requesting a briefing from the Administrator for the Environmental Protection Agency (EPA) regarding grants and funding given out under the Biden Administration. Their concerns include a $20 billion deposit to Citibank as part of the Greenhouse Gas Reduction Fund grant program. They are part of a broader effort to scrutinize EPA spending made by the previous administration under the Inflation Reduction Act.


Congressional Republicans Seek Briefing on EPA’s Biden-Era Grants and Funding

Republicans in Congress have requested a briefing from the Environmental Protection Agency (EPA) Administrator Lee Zeldin concerning the agency’s allocation of grants and funding under the Biden Administration, indicating their potential entry into the ongoing controversy.

In their letter to Administrator Zeldin, House Oversight and Government Reform Committee Chair James Comer (R-Ky.) and Rep. Eric Burlison (R-Mo.), Chair of the Subcommittee on Economic Growth, Energy Policy and Regulatory Affairs, sought clarity on the Biden Administration’s distribution of funds to outside groups and its agreements with financial institutions to evade oversight.

The letter voiced concerns about the allocation of $20 billion to Citbank under the Greenhouse Gas Reduction Fund (GGRF) grant program. A recent court order temporarily prevents the previous administration from terminating these grants, but also restricts grantees from accessing the funds.

This request is part of a broader effort to reclaim EPA expenditures made under the previous administration’s Inflation Reduction Act (IRA). The House Energy and Commerce Committee recently disclosed its oversight plan for the 119th Congress, which is focused on clean energy and advanced technology programs authorized under various Acts.

Simultaneously, four Democratic Attorneys General – led by Minnesota AG Keith Ellison – are suing the EPA over climate grant cancellations, alleging that the EPA’s actions infringe on constitutional liberties related to the separation of powers.

If you are contacted by Congress, observe the response due date. Congress often provides a brief response time, usually within two weeks of receipt. Being prepared for a Congressional investigation ahead of time allows you to respond confidently, develop a strategy to manage the conflict, and avoid the repercussions of a Congressional subpoena.

Proactive measures can reduce the impact of an investigation, ranging from implementing record retention policies to conducting tabletop exercises, and engaging with advocates on Capitol Hill. Even if Congress requests records or testimony, it is often possible to negotiate a satisfactory outcome that minimizes unnecessary exposure while responding to Congress with integrity.

If you receive a Congressional inquiry, contact us. Womble Bond Dickinson (US) LLP has a team experienced in guiding clients through Congressional investigations.

Interested in further information? Check out our previous client alert on Congress’s examination of DOE & EPA Grants/Loans.


Read More US Economic News