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 to access Heatmap's exclusive climate and energy polling, award-winning journalism, and subscriber-only events. Save $57 on an annual subscription, just $156 $99/year.
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
Gina Hinojosa and Texas.
Heatmap Illustration/Getty Images

When it comes to energy and data centers, everyone loves Texas. Its pro-business political consensus, unusually deregulated electricity market, wide-open plains, sunny skies, and large natural gas and oil deposits have attracted data center developers, renewables developers, liquefied natural gas export terminals, and battery storage entrepreneurs alike.

But this all happened under decades of unified Republican control of Texas’ government. That’s ending on January 19, when Gina Hinojosa is sworn in as governor alongside every other holder of statewide elected office who won this year. In Austin, they will join a Democratic majority Texas House of Representatives, which has been under Republican control since 2003.

Keep reading...Show less
Politics

Renewables Super PAC Takes a Victory Lap

Invest in Tomorrow Coalition says it took out clean energy adversaries in the midterms. Now it’s setting its sights on 2028.

Victoria Spartz and Lauren Boebert.
Heatmap Illustration/Getty Images

A pro-renewables Super PAC – Invest in Tomorrow Coalition – is taking a victory lap, claiming it played a key role in the blue wave and announcing plans to be involved in the 2028 presidential primaries.

When I first heard of the Invest in Tomorrow Coalition, it was clearly a revenge operation. Backed by renewables companies and crypto magnate Chris Larsen, the Super PAC waded into primary elections this year to take out Republicans who voted to repeal most of the Inflation Reduction Act. Tom Matzzie, a renewables executive leading the Super PAC, described the organization to me as “focused on accountability for elected officials who decide they want to attack the clean energy industry.” Shortly afterwards, Invest in Tomorrow announced an investment in seven races before ultimately expanding to 18 races.

Keep reading...Show less
Blue
AM Briefing

Blue His House With a Blue Little Window

On electrification’s shortfall, AI for nuclear, and Alva Energy’s big plans

The Capitol.
Heatmap Illustration/Getty Images

Current conditions: Heavy rain is overflowing rivers in the Dominican Republic’s eastern inland towns, including Monte Plata, where floodwaters are washing away cars • With weeks to go before the Atlantic hurricane season officially ends, a new tropical storm may be forming between the Bahamas and Bermuda • It’s cloudy and 51 degrees Fahrenheit in London, where the British are marking Guy Fawkes Day, a holiday commemorating the 421st anniversary of the failed plot by English Catholics to assassinate King James VI of Scotland and I of England by blowing up the House of Parliament.


THE TOP FIVE

1. What to make of Democrats’ blue tsunami

It’s a rebuke of President Donald Trump! A new era! A sign that President Lyndon B. Johnson’s prediction that the Democrats would lose the South until the end of young Bill Moyers’ lifetime (he died last year) was true! Maybe it’s all of these things. But one thing is certain: Democrats’ big victory Tuesday night halts what my colleague Robinson Meyer called “Trump’s energy revolution,” meant to defy the economics of renewables. There’s still much to dissect — we don’t even know who won shockingly competitive U.S. Senate races in Mississippi and Alaska. But my colleagues have a nice slate of stories to help us get started:

Keep reading...Show less
Green