NE Washington News

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 hearing from earlier this year, where 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 continued oversight of the Environmental Protection Agency’s Greenhouse Gas Reduction Fund.

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 Zealan Hoover testifying on behalf of the EPA. In numerous instances, Mr. Hoover assured Members that the award agreements that EPA would enter into with recipients selected to receive GGRF program awards would address their concerns.

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; the EPA responded: “[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 past performance applicants including new organizations or coalitions; it required applicants submit risk management plans; awardees comply specific terms conditions award agreements; BABA compliance: “including terms conditions reinforce all grants subject [BABA] statute,” “EPA hold selected applicants accountable BABA requirements through terms conditions award agreements.” Finally EPA responded question Representative Crenshaw saying “EPA include term condition protect against federal funds flowing entities certain connections People’s Republic China.”

In short EPA repeatedly sought reassure Committee its award agreements selected recipients address issues concern potential risks additional detail how these address issues concern potential risks.

As such please provide complete unredacted copy award agreement including attachments appendices amendments executes each funding recipient under GGRF no later August 29 2024 provide copy all finalized date letter provide remaining soon finalized.

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