Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Politics

Trump’s Other Funding Freeze Attacks Environmental Justice

Companies, states, cities, and other entities with Energy Department contracts that had community benefit plans embedded in them have been ordered to stop all work.

Donald Trump.
Heatmap Illustration/Getty Images

Amidst the chaos surrounding President Trump’s pause on infrastructure and climate spending, another federal funding freeze is going very much under the radar, undermining energy and resilience projects across the U.S. and its territories.

Days after Trump took office, acting Energy Secretary Ingrid Kolb reportedly told DOE in a memo to suspend any work “requiring, using, or enforcing Community Benefit Plans, and requiring, using, or enforcing Justice40 requirements, conditions, or principles” in any loan or loan guarantee, any grant, any cost-sharing agreement or any “contracts, contract awards, or any other source of financial assistance.” The memo stipulated this would apply to “existing” awards, grants, contracts and other financial assistance, according to E&E News’ Hannah Northey, who first reported the document’s existence.

Justice40 was Biden’s signature environmental justice initiative. Community benefit plans were often used by Biden’s DOE to strengthen the potential benefits that projects could have on surrounding local economies and were seen as a vehicle for environmental justice. When we say often, we mean it: some high profile examples of these plans include those used for the Holtec Palisades nuclear plant restart in Michigan and the agency’s battery materials processing and recycling awards.

After Kolb’s edict went out, companies, states, cities, and other entities with DOE contracts that had community benefit plans embedded in them were ordered to stop all work, according to multiple letters to contract recipients reviewed by Heatmap News. “Recipients and subrecipients must cease any activities, including contracted activities, and stop incurring costs associated with DEI and CBP activities effective as of the date of this letter,” one letter reads, adding: “Costs incurred after the date of this letter will not be reimbursed.”

One such letter was posted by the University of Michigan research department in an advisory notice. The department’s website summarizes the letter as “directing the suspension” of all work tied to “any source of DOE funding” if it in any way involved “diversity, equity, and inclusion (DEI) programs,” as well as Justice40 requirements and community benefits plans.

These letters state companies and other entities with community benefit plans in their contracts or otherwise involved in their funding awards would be contacted by DOE to make “modifications” to their contracts. They only cite President Trump’s executive orders that purportedly address Diversity, Equity and Inclusion practices; they do not cite a much-debated Office of Management and Budget memo freezing all infrastructure law and Inflation Reduction Act spending, which has been challenged in federal court. It is altogether unclear if any outcome of the OMB memo litigation is even relevant to this other freeze.

We reached out to the Energy Department about these letters for comment on how many entities may be impacted and why they targeted community benefit plans. We will update this story if we hear back.

A lot is still murky about this situation. It is unclear how many entities have been impacted and the totality of the impacts may be unknown for a while, because a lot of these entities supposed to get money may want to keep fighting privately to, well, still get their money. It’s also hazy if all entities that received these letters are continuing to do any construction or preparatory work or other labor connected to their funding not tied to the community benefit planning, or just halting the funded labor altogether.

The blast radius from this freeze is hard to parse, said Matthew Tejada, a former EPA staffer who most recently served as the agency’s deputy assistant administrator for environmental justice under the Biden administration. Tejada, who now works for the advocacy group NRDC and remains connected to advocates in the environmental justice space, said he was very much aware of this separate freeze when he was first reached by Heatmap. But “unless you’re able to really have a network of information bottom up from the recipients, it’s a bit of a black box we’re operating around because we’re not going to get transparency and information from the administration.“

“Part of their obvious strategy here is to create enough confusion as possible to make defending as difficult as possible. But I’m fairly certain the community and various others here -- local governments, tribes -- will have plenty to say about cutting through that chaos to make sure the will of Congress and the outcomes of these programs and projects are delivered upon.” He believes that any attempts to modify these contract awards “on the pretext of canceling the contract[s] will in all likelihood meet a legal challenge.”

But the ripple effects of this other freeze are starting to surface in local news accounts.

According to the Erie Times-News, the city of Erie, Pennsylvania currently cannot access funding for a city-wide audit for home energy efficiency. And a big road improvement project in the Mariana Islands – a U.S. territory – was nearly derailed by the freeze, according to the news outlet Mariana’s Variety, which reported project developers are just going to try and move forward without the remaining money provided under contract.

We’ll have to wait and see the breadth of the impacts here and whether this freeze will produce its own legal or regulatory rollercoaster. Hang on tight.

Green

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Spotlight

Secrecy Is Backfiring on Data Center Developers

The cloak-and-dagger approach is turning the business into a bogeyman.

A redacted data center.
Heatmap Illustration/Getty Images

It’s time to call it like it is: Many data center developers seem to be moving too fast to build trust in the communities where they’re siting projects.

One of the chief complaints raised by data center opponents across the country is that companies aren’t transparent about their plans, which often becomes the original sin that makes winning debates over energy or water use near-impossible. In too many cases, towns and cities neighboring a proposed data center won’t know who will wind up using the project, either because a tech giant is behind it and keeping plans secret or a real estate firm refuses to disclose to them which company it’ll be sold to.

Keep reading...Show less
Yellow
Hotspots

Missouri Could Be First State to Ban Solar Construction

Plus more of the week’s biggest renewable energy fights.

The United States.
Heatmap Illustration/Getty Images

Cole County, Missouri – The Show Me State may be on the precipice of enacting the first state-wide solar moratorium.

  • GOP legislation backed by Missouri Governor Mike Kehoe would institute a temporary ban on building any utility-scale solar projects in the state until at least the end of 2027, including those currently under construction. It threatens to derail development in a state ranked 12th in the nation for solar capacity growth.
  • The bill is quite broad, appearing to affect all solar projects – as in, going beyond the commercial and utility-scale facility bans we’ve previously covered at the local level. Any project that is under construction on the date of enactment would have to stop until the moratorium is lifted.
  • Under the legislation, the state would then issue rulemakings for specific environmental requirements on “construction, placement, and operation” of solar projects. If the environmental rules aren’t issued by the end of 2027, the ban will be extended indefinitely until such rules are in place.
  • Why might Missouri be the first state to ban solar? Heatmap Pro data indicates a proclivity towards the sort of culture war energy politics that define regions of the country like Missouri that flipped from blue to ruby red in the Trump era. Very few solar projects are being actively opposed in the state but more than 12 counties have some form of restrictive ordinance or ban on renewables or battery storage.

Clark County, Ohio – This county has now voted to oppose Invenergy’s Sloopy Solar facility, passing a resolution of disapproval that usually has at least some influence over state regulator decision-making.

Keep reading...Show less
Yellow
Q&A

Why Environmental Activists Are Shifting Focus to Data Centers

A conversation with Save Our Susquehanna’s Sandy Field.

Sandy Field.
Heatmap Illustration

This week’s conversation is with Sandy Field, leader of the rural Pennsylvania conservation organization Save Our Susquehanna. Field is a climate activist and anti-fossil fuel advocate who has been honored by former vice president Al Gore. Until recently, her primary focus was opposing fracking and plastics manufacturing in her community, which abuts the Susquehanna River. Her focus has shifted lately, however, to the boom in data center development.

I reached out to Field because I’ve been quite interested in better understanding how data centers may be seen by climate-conscious conservation advocates. Our conversation led me to a crucial conclusion: Areas with historic energy development are rife with opposition to new tech infrastructure. It will require legwork for data centers – or renewable energy projects, for that matter – to ever win support in places still reeling from legacies of petroleum pollution.

Keep reading...Show less
Yellow