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DOE Cancels $7.56 Billion in Clean Energy awards, Sparking Partisan Outcry
The Department of Energy abruptly canceled 321 awards totaling $7.56 billion on Wednesday night, a move largely impacting projects focused on clean energy initiatives and igniting accusations of political interference.
The agency has yet to release a comprehensive list of affected projects, leaving stakeholders in the dark. As of Thursday, TechCrunch confirmed it had not received the list from the DOE.However, reports from E&E News and Heatmap reveal that the majority of the cuts disproportionately affect states that voted for Kamala Harris in the last presidential election, with some impacts also reaching states that supported President Trump.
Hydrogen hubs and direct air capture (DAC) projects appear to have been especially hard hit. California Governor Gavin Newsom stated that the cancellations include $1.2 billion allocated to the state’s hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems. Further reporting from E&E News indicates that similar hubs in Texas and Louisiana are also facing elimination.
At least 10 direct air capture (DAC) projects, representing $47.3 million in funding,have been rescinded,though projects in Alaska,kentucky,Louisiana,and North dakota were spared. The oil and gas industry has shown support for DAC technology, recognizing its potential for enhanced oil recovery through CO2 injection into underperforming wells.
A broad range of states are affected by these sweeping cuts, including Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Vermont, and Washington.
The politically charged nature of the cancellations was underscored by a tweet from Russell Vought, director of the Office of Management and Budget. Vought previewed the cuts on Wednesday, stating that “the Left’s climate agenda is being cancelled,” a move widely interpreted as an attempt to exacerbate partisan divisions. He specifically listed 16 states that voted for Harris, while conspicuously omitting those that voted for Trump, despite the latter also experiencing project cancellations.
The original awards were distributed by several offices within the Department of Energy, including the Advanced research Projects Agency-Energy, Clean Energy Demonstrations, Energy Efficiency and Renewable energy, Fossil Energy, Grid Deployment, and Manufacturing and Energy Supply Chains.
The DOE noted that 26% of the awards were granted between Election Day and Inauguration Day, emphasizing that presidential authority extends until the inauguration, not simply after the election. Awardees have been granted 30 days to formally appeal the decision.
The trump administration’s commitment to dismantling policies supporting a transition away from fossil fuels is well-documented. Last week, the Department of Energy implemented a ban on staffers using terms like “climate change” and “emissions.” this latest action follows a previous cancellation of $3.7 billion in clean energy and manufacturing awards in May, impacting industries ranging from metal manufacturing to chemical plants operated by major fossil fuel companies.
These aggressive cancellations have already prompted legal challenges from numerous award recipients seeking to retain their funding. The Environmental protection Agency (EPA), which previously canceled $20 billion in contracts, has also been targeted with lawsuits. While a federal district court initially deemed the EPA’s actions “arbitrary and capricious,” an appellate court later sided with the agency, asserting its right to exercise “proper oversight and management.” Several recipients of the recent DOE cancellations have already initiated appeals, the agency confirmed.
