EXCLUSIVE: House GOP report alleges $20B green grants enriched Biden allies
Republicans from the House Oversight Committee released a report outlining what they allege are conflicts of interest, financial mismanagement and oversight failures associated with a Biden-era green energy grant program that sent $20 billion to just 8 different nonprofits.
The money stems from the Inflation Reduction Act of 2022, which budgeted roughly $27 billion to advance clean energy and ‘environmental justice’ under the Greenhouse Gas Reduction Fund (GGRF). An undercover recording of a former Biden Environmental Protection Agency (EPA) political appointee, who described disbursements made through GGRF as akin to tossing gold bars off the Titanic at the end of Biden’s term, was cited by EPA Administrator Lee Zeldin in February when he announced that the agency would be looking into the matter. Republicans are currently trying to claw back the funds, which they claim were rushed out the door at the end of the Biden administration with little oversight and steered toward Democratic allies.
‘Today’s report from the House Oversight Committee exposes the Biden administration’s sweeping green energy scheme, designed to funnel tens of billions in taxpayer dollars to enrich Democratic allies and fund partisan, politically motivated projects,’ House Republican Oversight Chairman James Comer told Fox News Digital. ‘Americans deserve better than this green energy scam disguised as environmental justice, and Oversight Republicans will continue to hold the Biden administration accountable to ensure the EPA operates as intended and that taxpayer dollars are spent transparently, responsibly, and in the best interest of the American people.’
The EPA terminated most of these grants after the Trump administration took office, but the move was met with legal pushback from Democrats. However, last week, a federal appeals court judge struck down a lower court’s ruling that blocked the Trump administration’s move to freeze the funds, arguing the administration was acting in accordance with its role to provide ‘proper oversight’ of how funds are distributed.
The EPA has referred the matter to the agency’s inspector general. The Justice Department and Federal Bureau of Investigation are also running concurrent investigations, the EPA has indicated. However, up to this point, no criminal wrongdoing has been uncovered.
Oversight and Investigations Subcommittee Ranking Member Rep. Yvette Clarke, D-N.Y., declined to comment on the matter. Additionally, several other top ranking Democrats, including the ranking member on the House Oversight Committee, Rep. Robert Garcia, D-Calif., did not respond to requests for comment.
However, in an Aug. 11 letter to Zeldin signed by several ranking Democrats, including Clarke, they accused Zeldin of ‘lying’ about the Inflation Reduction Act funding.
‘Time and again, you have boasted about the unlawful activities EPA is conducting under your leadership without any credible evidence to justify your actions,’ the letter stated.
While there may not be any criminal wrongdoing alleged thus far, the picture painted by the investigation by House Oversight Republicans shows the Biden administration ‘turned the Environmental Protection Agency into a vehicle for rewarding political allies, all while risking the stability of our energy infrastructure,’ according to Comer.
‘Today’s report from the House Oversight Committee exposes the Biden administration’s sweeping green energy scheme, designed to funnel tens of billions in taxpayer dollars to enrich Democratic allies and fund partisan, politically motivated projects,’ Comer added.
The report released by Oversight Republicans details how committee staff reviewed ‘tens of thousands’ of documents produced by the GGRF awardees in question. The documents also included EPA materials for reviewing and awarding the GGRF funds, among other records.
The report shows how the EPA judged the applicants using a scoring system that awarded points for different parts of the nonprofits’ proposals. For example, flawless ‘financial risk management’ awarded a total of 85 points, while flawless ‘legal and compliance risk management’ could provide an applicant up to 40 possible points. Meanwhile, the EPA weighted ‘equity and environmental justice’ the same way it did ‘financial statements’ and more than it weighted good ‘governance’ or ‘legal and compliance risk management,’ among other categories.
‘By doing so, the EPA all but ensured that the grants would go to President Biden’s political allies. All awardees of the GGRF had ‘climate equity’ or diversity, equity, and inclusion (DEI) policies in place or committed to putting equivalent policies in place,’ the House Oversight report argues. ‘EPA criticized multiple applicants because their targeted reductions in emissions were too low. In other cases, the EPA staff complained that there was not enough ‘environmental justice’ expertise represented in leadership or on the boards of the nonprofits. The Biden EPA insisted on climate equity metrics over merit.’
After receiving their scores, the program provided a ‘reconciliation process’ for EPA staff to discuss their assessments and adjust their scores, according to the Oversight report. The ultimate decision was then passed to a single ‘selection official’ who made the final determination.
The report also claims that the disbursement review process was ‘full of contradictions.’ It says documents showed EPA officials had concerns about the groups receiving the funds related to overly optimistic projections for financial benefits or emissions reductions, lack of access to private capital, high uninsured cash balances, and lack of transparency. Simultaneously, in other documents, the EPA justified the GGRF recipients as entities ‘with track records, staff, risk management policies, and other programmatic capabilities,’ according to the House Oversight report.
One of the groups under scrutiny, Climate United Fund, was established for the purpose of utilizing the GGRF, according to the Oversight report. The report points to claims from EPA staff indicating the group is ‘a new-entity purpose built for the execution of our program plan and does not have a robust reporting history.’
Climate United, reported just $95,557 in assets for fiscal year 2023 but received $6.97 billion from the EPA, representing a 7,293,980% increase in reported assets since 2023, the Oversight report points out.
Other groups also saw similarly significant increases.
Power Forward Communities received $2 billion as part of the GGRF disbursements. The group, not established until after the Biden administration announced the GGRF application process, reported just $100 in assets in its first and only tax filing – meaning that following the $2 billion GGRF award, the entities’ assets increased 2,000,000,000%, according to the House Oversight report.
‘These tired allegations distract from the fact that EPA’s illegal funding freeze will drive up energy costs for hardworking Americans across the country. When household bills are skyrocketing, Congress should be focused on deploying cheap, clean energy technologies rather than resurfacing false claims,’ Brooke Durham, a spokesperson for Climate United told Fox News Digital when reached for comment. ‘Climate United welcomes the opportunity to explain our work and the benefits of the NCIF program to Congress, federal agencies, and to the public.’
The spokesperson also noted that while the Climate United coalition – which is made up of three separate organizations – is new, the organizations that make it up are not.
‘The organizations that make up Climate United have been investing in communities for over 30 years, and are experts in the capital markets who have collectively managed more than $30 billion in institutional and public funds,’ Durham said. She added that the group was proud to tout a 946.5 point evaluation score by the EPA out of a possible 1050 points, which Durham noted was among the highest of all the awardees.
Power Forward declined to comment. However, the group’s CEO, Tim Mayopolous told CBS News last month that the GGRF award process ‘was a highly structured, competitive process that the United States government went through.’
‘The organizations that are part of our coalition that actually do this work – they have been around collectively for nearly a century, and they have invested or disbursed over $100 billion of capital into communities all over America over those years,’ Mayopolous added. ‘We’re not inexperienced people.’
Climate United, along with some of the other groups in question, are also under fire for allegedly inflating their executives’ salaries and travel benefits in proposed budgets. The CEO’s salary at Climate United was slated to be over $500,000, and at Power Forward $800,000, with an increase to over $900,00 in a year. One group produced a budget that paid its executive staff of seven employees a total of $24,862,419 over three years, according to the report.
Meanwhile, conflicts of interest, which Zeldin has described as ‘blatant,’ were also laid bare in the report. The director of the GGRF selected by the Biden White House was a former policy director at the group that wanted to pay their executive staffers close to a combined $25 million over three years, according to the report. The report says the director had to recuse himself from the award process because of the conflict.
At Climate United, the group currently staffs a former Biden climate advisor who worked during the last two years of the former president’s term. Their board makeup while pursuing the GGRF award also had ties to the Obama administration. However, Durham contested the implication that there were conflicts of interest, telling Fox News Digital that no staff or board members at Climate United helped with the design of the program, or the selection of the award recipients.
Power Forward’s GGRF application process was also accused of being led by Democrat allies in the Republican Oversight report. Power Forward was founded by executives at nonprofit Rewiring America, co-founded by top Obama administration advisors, the report states. It also claims that Power Forward had planned on awarding Rewiring America with nearly $500,000,000.
‘The nonprofits receiving awards are littered with connections to Biden Administration staff and allies. The executives and board members at some of the GGRF’s awardees even helped write the policies that created the GGRF and are now benefitting from exorbitant salaries provided by taxpayers,’ the House Oversight report states.
‘The GGRF was a huge step for the Left in realizing the Green New Deal. The program is a National Green Bank that will flood the economy with billions in taxpayer dollars to fund partisan projects regardless of whether they merit investment or not.’