E&C Republicans Expand Oversight of EPA’s $27 Billion Green Bank

Aug 19, 2024

Washington, D.C. - In a new letter to the Environmental Protection Agency (EPA), Energy and Commerce Committee Republicans are pressing for answers regarding Greenhouse Gas Reduction Fund (GGRF) awards.

The letter to Administrator Regan, signed by Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), and Subcommittee on Environment, Manufacturing, and Critical Materials Chair Earl L. "Buddy" Carter (R-GA), requests an unredacted copy of all GGRF award agreements that have been finalized.

It follows up on an Oversight Subcommittee hearingfrom earlier this year, where Mr. Zealan Hoover, Senior Advisor to the Administrator, assured Committee Members that the award agreements that EPA entered into with recipients to receive GGRF program awards would address the concerns raised.

LETTER TEXT BELOW:

Dear Administrator Regan,

We write to you as part of the Energy and Commerce Committee's (the Committee) continued oversight of the Environmental Protection Agency's (EPA) Greenhouse Gas Reduction Fund (GGRF).

As you know, Committee Members have many questions regarding this first-of-its-kind, $27 billion program, including those discussed at a January 30, 2024, Subcommittee on Oversight and Investigations hearing on the GGRF, with Mr. Zealan Hoover, Senior Advisor to the Administrator, testifying on behalf of the EPA. In numerous instances, Mr. Hoover assured Members that the award agreements that EPA would enter into with recipients that the EPA selected to receive GGRF program awards would address the concerns they raised.

For example, in response to a question from Committee Chair Rodgers about what conflicts of interest policies would govern funding recipients responsible for further distributing this money, Mr. Hoover responded that "they will be subject to all of the terms and conditions of their financial assistance agreement." After Representative Guthrie pressed for more information on whether organizations with foreign ties could receive GGRF funding, Mr. Hoover stated that "one of the terms and conditions in each of the award agreements is going to be a prohibition against entering into any form of contractual relationship with a foreign entity of concern." Mr. Hoover also replied to Representative Lesko, "[e]ach grantee is applying with a rigorous investment plan, proposed project pipeline, and timeline for a wide array of necessary activities covering their investment work, their governance, their organizational structure. All of that will be enshrined in our terms and conditions of the grant agreement."

Members also submitted follow-up questions for the record after the hearing. Oversight and Investigations Subcommittee Chair Griffith requested more detail about performance audits, and the EPA responded, in part, "[w]e expect that the terms and conditions of GGRF grants, as provided in 2 C.F.R. § 200.208, will authorize the project officer to closely monitor recipient performance and compliance with grant requirements." Additionally, in response to Chair Griffith's inquiry on how the EPA could evaluate the past performance of applicants that included new organizations or coalitions, the EPA stated that it required applicants to submit risk management plans, and that awardees would have to comply with specific terms and conditions in their award agreements. In response to a question on Build America, Buy America Act (BABA) compliance, the EPA stated that it was "including terms and conditions in the award agreements to reinforce that all grants are subject to [BABA] by statute," and that "EPA will hold selected applicants accountable to BABA requirements through the terms and conditions of the award agreements." Finally, the EPA also responded to a question from Representative Crenshaw, saying that "EPA will include a term and condition in all award agreements to protect against federal funds flowing to entities with certain connections to the People's Republic of China."

In short, the EPA repeatedly sought to reassure the Committee that its award agreements with selected recipients would address the issues of concern and potential risks. The Committee seeks additional detail on how these award agreements will address the issues of concern and potential risks.

As such, please provide a complete and unredacted copy of the award agreement, including all of the attachments, appendices, and any amendments, that the EPA executes with each funding recipient under the GGRF. By no later than August 29, 2024, please provide a copy of all award agreements that have been finalized as of the date of this letter, and please provide a copy of all remaining agreements as soon as they are finalized.

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