A recent announcement by the Environmental Protection Agency (EPA) regarding its plan to distribute $20 billion from the Greenhouse Gas Reduction Fund (GGRF) has raised ethics concerns. Protect the Public's Trust (PPT), an ethics watchdog, has drawn attention to the Biden administration's decision to funnel money through nonprofit entities instead of establishing a single national green bank as originally proposed.
The EPA's April 19 announcement detailed the implementation framework for the GGRF, authorized by the Inflation Reduction Act (IRA). The original plan involved creating a "National Green Bank" responsible for funding local organizations capable of financing clean energy projects. However, the EPA now plans to deploy $20 billion in "general" funding to a number of nonprofits that will disburse the funds and may also engage with coalitions including other nonprofits.
This shift in funding distribution has raised concerns due to the close ties between high-level EPA officials and various nonprofit organizations that may be in line to receive funding. Several political appointees within the EPA have connections to organizations such as the Natural Resources Defense Council, Environmental Defense Fund, U.S. Water Alliance, Sierra Club, and the Conservation Law Foundation, which could be candidates for funding either directly or as part of a coalition.
PPT Director Michael Chamberlain commented, "In light of the extensive ties of high-ranking EPA political appointees to powerful nonprofit organizations, the American public is justified to be wary about the potential for conflicts to arise." He added, "Shifting the distribution system of $20 billion to nonprofits, with the possibility that some of those tied to agency officials may end up being among them, heightens concerns by orders of magnitude."
As GGRF dollars are announced, PPT has committed to monitoring whether entities connected to senior EPA officials are selected. Chamberlain stated, "We will be paying close attention as the EPA announces these awards to monitor if any former employers or clients of senior EPA officials are included in awards, subawards, or coalitions."
