Capito Demands Transparency on EPA Spending of Taxpayer Dollars through IRA Grant Programs

Ranking Member Capito requests detailed information on spending and funding agreement terms under the IRA's Greenhouse Gas Reduction Fund and Environmental and Climate Justice Block Grants.

WASHINGTON, D.C. - Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Environment and Public Works (EPW) Committee, sent a letter to Environmental Protection Agency (EPA) Administrator Michael Regan outlining significant concerns regarding massive EPA spending on new programs arising out of the Democrats' Inflation Reduction Act (IRA).

"This rush on the part of your staff increases the risk that funding will be improperly awarded and spent without proper transparency, reporting requirements, and other safeguards to hold accountable organizations receiving taxpayer money," Ranking Member Capito wrote in part to Administrator Regan.

"Two sections of the IRA, accounting for $30 billion in funding, are the focus of this letter: the Greenhouse Gas Reduction Fund (42 USC 7434) and the Environmental and Climate Justice Block Grants (42 USC 7438), authorizing new sections 134 and 138 of the Clean Air Act (CAA) (42 USC 7401 et. seq.), respectively," Ranking Member Capito continued.

Read the full letter here and below:

Dear Administrator Regan:

I write to you today to continue the oversight of funds provided to the Environmental Protection Agency (EPA) in the Inflation Reduction Act (IRA) (Pub. Law 117-169, Aug. 16, 2021, 136 Stat 1818). I have long had concerns over the massive spending on new programs arising out of the IRA, as well as the risk for waste, fraud, and abuse in these programs. With no oversight funding provided to the EPA Office of Inspector General in the law, it has been incumbent on Congress to conduct our own oversight.

My concerns over the potential for misuse of IRA funding have only been heightened in recent days, as one of your staff described EPA's current funding push as "throwing gold bars off the Titanic." This rush on the part of your staff increases the risk that funding will be improperly awarded and spent without proper transparency, reporting requirements, and other safeguards to hold accountable organizations receiving taxpayer money. As the EPA rushes to implement what agency staff called its "insurance policy against Trump winning," despite the will of the electorate that opted-out from this Administration's policies, the potential costs of the IRA to the American taxpayer through fraud, waste, and abuse are too great to ignore.

Two sections of the IRA, accounting for $30 billion in funding, are the focus of this letter: the Greenhouse Gas Reduction Fund (42 USC 7434) and the Environmental and Climate Justice Block Grants (42 USC 7438), authorizing new sections 134 and 138 of the Clean Air Act (CAA) (42 USC 7401 et. seq.), respectively.

For all grants made under sections 134 and 138 of the CAA, please submit two charts (one for each section) in Microsoft Excel format containing the following information:

1. Date of Grant Obligation

2. Name of Grantee

3. Dollar Amount of Grant Award

4. Total Amount of Dollars in Grants Awarded.

In addition to the two charts, please also provide a digital copy of each signed grant agreement executed under section 134 and 138 of the CAA. Recognizing that the grant agreements may be large file sizes, we are happy to work with you to download the files from a secure government cloud storage site, as opposed to having them submitted in hard copy or via external digital storage devices.

I appreciate your prompt response to this inquiry.

Sincerely,

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