Watchdog to audit federal energy funding cuts

An independent federal office is launching an investigation into the U.S. Department of Energy after it canceled $8 billion in funding for clean energy projects in California and other Democratic-leaning states.

- BY HAYLEY SMITH

The Energy Department Office of the Inspector General agreed to audit the agency after nearly 30 California lawmakers wrote a letter raising concerns about the termination of funding, something they described as unlawful because it was targeted at blue states “for their perceived lack of support for President Trump.”

The cancellation in October included more than 300 awards in 16 states that did not vote for Trump in last year’s presidential election. Among them were 79 canceled grants for California — more than any other state on the list — totaling $2.1 billion, as well as $1.2 billion in future funding expected for the state’s hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES.

Responding to the lawmakers’ letter Monday, Inspector General Sarah B. Nelson said it “highlights important issues regarding the department’s administration of financial assistance.”

“In response to your letter, the Office of Inspector General recently announced an audit which will review the Department of Energy's processes when canceling financial assistance and whether those cancellations were in accordance with established criteria,” Nelson wrote. “This work will help ensure that these activities are conducted consistently with applicable laws, regulations, and Departmental policies and procedures.”