Energy Department’s Watchdog Agrees to Padilla-Schiff-Lofgren Request for Independent Audit of Canceled Grants for 70+ California Projects

Padilla, Schiff, Lofgren and 26 members of the California congressional delegation asked the Department of Energy Inspector General to review the cancellation of $3.3 billion in federal funding for California projects, including the ARCHES Hydrogen Hub, earlier this year

WASHINGTON, D.C. - U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.) and Representative Zoe Lofgren (D-Calif.-18) announced that the U.S. Department of Energy (DOE) Office of Inspector General (OIG) agreed to their request to launch an independent investigation into the unlawful termination of $7.6 billion in grants to California and other states targeted for their perceived lack of support for President Trump.

Padilla, Schiff, and Lofgren led 26 members of the California Congressional delegation in a request for the audit in October, following Office of Management and Budget Director Russell Vought's post announcing the cancellation of 79 grants for California, totaling $2.1 billion, as well as $1.2 billion in future funding that Padilla secured for the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) hydrogen hub as part of 321 terminated projects nationwide.

The cancellation of these funds threatens hundreds of thousands of jobs across energy, construction, and manufacturing sectors and would cause higher energy costs for California residents.

"The Trump Administration's unlawful cuts of billions of dollars for California energy projects - including over $2 billion in Republican-represented districts - is making Donald Trump's affordability crisis even worse," said Senator Padilla. "After our calls for a watchdog investigation, I am glad to see the Energy Department's inspector general taking action to bring transparency and accountability for the Administration's vengeful hit list. From a backup power generator for a California children's hospital to bipartisan funding for ARCHES Hydrogen Hub, the Administration must reverse these harmful cuts and work to prevent Americans' energy costs from skyrocketing even further."

"Donald Trump and his administration have launched an unlawful campaign of vengeance toward California, and their illegal cancellation of 79 energy grants to California was the latest example. I'm pleased to see that at our request, the Energy Department's acting Inspector General is opening an investigation into this clear political targeting, which the Trump administration has openly admitted in court was intended to punish blue states," said Senator Schiff. "The cancellation of these funds directly threatens California jobs and will drive up energy bills at a time when costs are already out of control and the demand for energy is going up exponentially. I look forward to the Office of Inspector General's thorough review of this matter and will continue to urge that these critical, congressionally appropriated grants are reinstated."

In addition to Padilla, Schiff, and Lofgren, the October request was also signed by Speaker Emerita Nancy Pelosi (D-Calif.-11) and U.S. Representatives Nanette Barragán (D-Calif.-44), Ami Bera (D-Calif.-06), Julia Brownley (D-Calif.-26), Judy Chu (D-Calif.-28), Gil Cisneros (D-Calif.-31), Laura Friedman (D-Calif.-30), John Garamendi (D-Calif.-08), Robert Garcia (D-Calif.-42), Jared Huffman (D-Calif.-02), Sara Jacobs (D-Calif.-51), Sydney Kamlager-Dove (D-Calif.-37), Mike Levin (D-Calif.-49), Sam Liccardo (D-Calif.-16), Ted Lieu (D-Calif.-36), Doris Matsui (D-Calif.-07), Dave Min (D-Calif.-47), Kevin Mullin (D-Calif.-15), Jimmy Panetta (D-Calif.-19), Scott Peters (D-Calif.-50), Luz Rivas (D-Calif.-29), Raul Ruiz (D-Calif.-25), Lateefah Simon (D-Calif.-12), Norma Torres (D-Calif.-35), Derek Tran (D-Calif.-45), Juan Vargas (D-Calif.-52), and George Whitesides (D-Calif.-27).

Senators Padilla and Schiff have strongly opposed the Department of Energy's recent project cuts. In October, Padilla, Schiff, and Lofgren led 27 Democratic California lawmakers in writing to Budget Director Vought and Secretary of Energy Chris Wright to denounce the DOE energy project cuts. Padilla and Schiff also joined 35 Senators in demanding that Secretary Wright and Director Vought restore funding for 223 energy projects in Democratic-led states that the Trump Administration unlawfully canceled. Additionally, The California Senators also blasted the Department's cancellation of all $1.2 billion Padilla secured in the Bipartisan Infrastructure Law for California's ARCHES hydrogen hub. Padilla, Schiff, and Representatives Whitesides and Levin previously led a bipartisan, bicameral delegation of 45 lawmakers in urging DOE to preserve funding for hydrogen production hubs, including ARCHES.

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