House Energy and Commerce Committee Chair Cathy McMorris Rodgers and Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan have raised concerns regarding the Department of Energy (DOE) and President Biden's use of a wartime statute to subsidize favored energy industries. In a letter addressed to DOE Secretary Jennifer Granholm, the committee chairs questioned the use of the Inflation Reduction Act (IRA) subsidies to support the Biden administration's rush-to-green agenda.
The DOE recently announced the allocation of $169 million for nine projects aimed at manufacturing electric heat pumps. These awards are being carried out under an executive order that expanded the Defense Production Act (DPA) to enhance domestic production capacity for electric heat pumps. However, the executive order waived several statutory requirements within the DPA, leaving the public and Congress uninformed and without justification for these actions.
Rodgers and Duncan have posed several questions to Secretary Granholm, seeking clarification on the justification and impact of these subsidies. They have asked if electric heat pumps have been identified as essential to national defense, and if the DOE has confirmed that funds awarded will not be sourced from China or its affiliated entities. The committee chairs have also requested information regarding any shortfalls in electric heat pump production and the justification for the grant funding provided.
Moreover, the committee has inquired about the support behind the DOE's claim that electric heat pumps will reduce reliance on adversarial sources of energy, particularly Russia and China. They have requested the provision of studies, research, or applicable materials supporting this assertion. Finally, Rodgers and Duncan have sought a commitment from Secretary Granholm to provide explanatory materials justifying the use of the DPA for other energy resources, such as solar, transformers, electric grid components, insulation, and fuel cells, if further awards are announced.
The letter to Secretary Granholm reflects the concerns of the committee chairs regarding the use of wartime authority to subsidize specific energy industries. They emphasize the need for transparency and justification in the allocation of funds and the impact on national defense capabilities. As the committee awaits a response from the DOE, it remains committed to ensuring that taxpayer dollars are being spent effectively and in accordance with the nation's energy priorities.
For additional details, please follow this link: https://energycommerce.house.gov/posts/chairs-rodgers-and-duncan-decry-administration-s-use-of-war-time-authority-to-subsidize-radical-rush-to-green-agenda
