Examining the Biden Administration's Energy and Environment Spending Push

Immigration Enforcement and Sanctuary PoliciesHouse Energy and Commerce Subcommittee on Oversight and Investigations · 2025-02-26 · 119th Congress
The House Energy and Commerce Subcommittee on Oversight and Investigations convened this hearing (February 26, 2025) to examine how the EPA and Department of Energy distributed tens of billions of dollars under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), including grants to newly formed organizations and a rapid surge of DOE loan closures in the final months of the Biden administration. Begins at 0:00:30
Transcript
Highlights

Title

Oversight of Biden-era EPA and DOE clean energy grant and loan spending

Purpose

The House Energy and Commerce Subcommittee on Oversight and Investigations convened this hearing (February 26, 2025) to examine how the EPA and Department of Energy distributed tens of billions of dollars under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), including grants to newly formed organizations and a rapid surge of DOE loan closures in the final months of the Biden administration. Witnesses from the GAO and the EPA and DOE Offices of Inspector General testified on internal-control gaps, conflict-of-interest oversight at DOE's Loan Programs Office (LPO), and the impact of recent federal workforce reductions and IG firings on ongoing oversight. Democrats used the hearing to press Republicans on the Trump administration's dismissal of inspectors general and freezing of congressionally appropriated funds. Begins at0:00:30

Who spoke

Chairman Morgan Griffith (Subcommittee Chair)1:51:34: Presided over the hearing, questioned witnesses on the clean school bus rebate program and the bankrupt bus manufacturer Lion Electric0:53:33, and closed the hearing2:00:13.

Chairman Brett Guthrie (R-KY), Full Committee Chair0:00:30: Cited the $5 billion Greenhouse Gas Reduction Fund award to the Coalition for Green Capital despite it reporting under $3.5 million in 2023 revenue0:01:00; later probed the $200 million Green-y Re subrecipient award and grantee/subrecipient monitoring0:41:25.

Vice Chairman (opening, unnamed): Noted the IIJA/IRA provided roughly $100 billion in supplemental EPA funding, over 10 times EPA's annual budget, and cited DOE OIG's finding that LPO administered $385 billion in loan authority without effective conflict-of-interest controls0:03:01; also cited the $2 billion Power Forward Communities grant to an organization reporting $100 in 2023 revenue0:03:32.

Ranking Member Frank Pallone (D-NJ)0:04:32: Argued the hearing ignored Elon Musk's "self-dealing" and Trump's firing of inspectors general without required congressional notice0:05:02; said Republicans held over 20 hearings without finding fraud0:07:03 and criticized proposed Medicaid cuts of at least $880 billion0:07:34; later asked witnesses whether mass firings threaten oversight capacity0:47:30.

Nicole Murley, Acting EPA Inspector General0:10:36: Testified EPA received over $40 billion under the IRA without dedicated OIG oversight funding0:11:06; found nearly $1 billion in questioned costs from unverified state lead-service-line data0:11:36 and that only 43% of clean school buses funded by 2022 rebates had been delivered as of February 2025 despite an October 2024 deadline0:12:06; said 32 hires were frozen and 23 staff took deferred resignation0:37:53.

J. Alfredo Gomez, GAO Director, Natural Resources and Environment0:15:08: Said IIJA provided over $60 billion for EPA, including $50 billion for water infrastructure, and IRA added $41.5 billion, versus EPA's ~$8.8 billion annual budget0:15:38; noted EPA needed 74 FTEs to oversee the Greenhouse Gas Reduction Fund but had only 38 staff0:19:10; called using a commercial bank as a financial agent a departure from EPA's customary funding model0:18:39.

Jonathan Black, Chief Advisor, DOE Office of Inspector General0:20:41: Testified LPO's ~$385 billion in expanded loan authority lacked adequate conflict-of-interest controls for its 300+ contracted due-diligence personnel0:21:12; said LPO closed $46 billion in loans between November 2024 and January 2025, versus five loans closed from March 2022–August 20240:23:440:32:20; noted his own last day at DOE OIG was that Friday, with 39 staff (13% of DOE OIG) taking deferred resignation0:37:23.

Frank Rusco, GAO Director, Natural Resources and Environment0:25:45: Said DOE's Office of Clean Energy Demonstrations (OCED) had awarded almost $19 billion of its ~$27 billion in IIJA/IRA funding by September 20240:26:46; flagged LPO's rapid pace, including $24.4 billion awarded in Q4 2024 and about $25 billion in January alone, as his "biggest concern"0:28:48; noted a funding freeze coincided with the lapse of a contract for independent project cost-analysis reviews0:48:30.

Vice Chairman Troy Balderson (R-OH)0:30:49: Cited a Biden EPA adviser's leaked comment about "throwing gold bars off the Titanic" to push out funding fast0:31:20; pressed Black on accelerated loan closures and weak risk-mitigation measures0:31:500:33:51.

Ranking Member Yvette Clarke (D-NY), Subcommittee Ranking Member0:35:53: Noted Trump fired at least 19 inspectors general, including DOE's and EPA's, without required notice0:36:23; confirmed DOE OIG lost 39 staff (13%) and EPA OIG had 32 frozen hires and 23 resignations0:37:230:38:24.

Rep. Bill Johnson [Griffith], Virginia (opening portion misattributed above): *(see Griffith above)*

Rep. Bob Latta / Rep. Buddy Carter (R-GA)1:38:28: Highlighted the $2 billion Power Forward Communities grant awarded to a group with only $100 in revenue in its first three months1:38:59; pressed Murley to commit to investigating the award1:41:01 and questioned Black on the $46 billion in loans closed in one month versus $40 million issued over five years under the 2009 Recovery Act1:42:32.

Rep. Debbie Dingle (D-MI)1:44:03: Defended the Greenhouse Gas Reduction Fund's bipartisan origins and argued it lowers energy costs, including up to 20% via the Solar for All program1:47:05.

Rep. Kathy Castor (D-FL)1:49:07: Asked whether the illegal firing of the EPA IG delayed oversight work1:49:37; pressed Black on whether frozen grant/loan funds were still being illegally withheld despite court orders1:53:09.

Chairman Gary Palmer (Subcommittee Chair, questioning at end)1:54:10: Cited roughly $240 billion per year in improper federal payments as justification for the funding freeze and hearing1:54:41; asked Black about the LPO's "trust but don't verify" approach to conflict-of-interest tracking1:57:42.

Rep. Morgan McGarvey / Rep. Ritchie Torres (D-NY)1:06:40: Asked whether workforce reductions would impair EPA's ability to manage drinking water infrastructure and cited GAO's high-risk designation of NNSA workforce issues after the firing of over 300 NNSA staff1:10:44.

Rep. Randy Weber (R-TX)1:01:37: Asked about DOE support for advanced nuclear (X-energy/Dow) and later pressed witnesses on a backlog of over 160 EPA Class VI carbon-storage permits1:03:38.

Rep. Kathy Griffith [Morgan Griffith] / Rep. Lizzie Fletcher (D-TX)0:56:04: Raised EPA Region 6's placement of all NEPA permit reviewers on leave, affecting five states and 66 tribal nations0:57:35; questioned Black on federal conflict-of-interest and financial-disclosure requirements1:00:36.

Rep. Diana DeGette (D-CO)1:33:27: Asked whether the prior DOE and EPA inspectors general ever presented evidence of grant-related waste, fraud, or abuse to the committee in the last Congress1:34:27.

Rep. Morgan McGarvey [Kim Meltzer/Suzan?] (Virginia member)1:28:24: Asked Murley and Black to elaborate on their offices' role preventing corruption and conflicts of interest, citing EPA settlements with Tesla1:28:54.

Rep. Trahan (D-MA)1:17:50: Cited a stalled Peach Tree Orchard Road groundwater cleanup in Augusta, GA, and a green-hydrogen factory in her district funded by IIJA, asking Rusco about government reliability for private investment1:20:20.

Key moments

Chairman Guthrie said the Coalition for Green Capital received a $5 billion EPA award despite reporting under $3.5 million in 2023 revenue — more than 1,400 times its revenue — and that a $200 million subrecipient, Green-y Re, was incorporated in October 2024, after the award0:01:000:42:27.

DOE OIG's Jonathan Black testified LPO closed $46 billion in loans between December 2024 and January 2025, compared with five loans closed from March 2022 to August 2024, and said LPO's own outside experts flagged risk-mitigation measures covering only 25% or less of needed revenue protection or cost control on two reviewed loans0:23:440:24:44.

Rep. Carter noted Power Forward Communities received a $2 billion EPA grant after reporting just $100 in total revenue in its first three months of operation1:38:59; Murley agreed this would warrant scrutiny and committed to initiating IRA-focused review work1:41:01.

EPA OIG's Nicole Murley testified that only 43% of buses funded under the 2022 Clean School Bus rebate program had been delivered as of February 2025, despite an October 2024 deadline, and that the EPA OIG lacks dedicated funding to oversee $40+ billion in IRA spending0:12:060:13:07.

Rep. Griffith and Murley discussed the bankruptcy of bus manufacturer Lion Electric, with Murley declining to confirm or deny an ongoing investigation, which Griffith said implied one exists0:53:33.

GAO's J. Alfredo Gomez said EPA determined it needed 74 full-time staff to oversee the Greenhouse Gas Reduction Fund's subprograms but had only 38, and that EPA used a commercial bank as a financial agent to hold roughly $20 billion — a departure from its customary funding model0:19:100:18:39.

Frank Rusco said a recent funding freeze coincided with the lapse of a contract for independent cost-analysis reviews of DOE clean-energy projects, warning money could go out without review or delay/cancel projects0:48:300:49:01.

Rep. Clarke and witnesses confirmed DOE OIG lost 39 staff (13% of its workforce, including five senior executives) and EPA OIG had 32 frozen hires and 23 deferred resignations amid the Trump administration's personnel actions0:36:530:37:53.

Rep. Weber revealed a backlog of over 160 EPA Class VI carbon-storage well permits, which none of the four witnesses had prior knowledge of1:04:08.

Chairman Palmer cited roughly $240 billion per year in improper federal payments as the rationale for funding freezes and the hearing itself, while Black confirmed LPO's approach amounted to "trust but don't verify" on conflict-of-interest tracking1:54:411:58:13.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Oversight and Investigations
Chamber / CongressHouse · 119th Congress
Date2025-02-26
TypeHearing
Witnesses
Mr. Frank Rusco — Director, Natural Resources and Environment Team, U.S. Government Accountability Office
Mr. Jonathan Black — Chief Advisor for Strategic Planning and Program Oversight, Office of Inspector General, U.S. Department of Energy
Ms. Nicole Murley — Acting Inspector General, Office of Inspector General, U.S. Environmental Protection Agency
Mr. J. Alfredo Gomez — Director, Natural Resources and Environment Team, U.S. Government Accountability Office
Videoyoutube
Transcript239 caption blocks · 19,381 words · 2:00:23 runtime
EventCongress.gov 117929