Investigation uncovers alleged ethical issues in Greenhouse Gas Reduction Fund Image By EPN Staff Key Points Oversight investigators say $20 billion in GGRF funds went to eight nonprofits with Democratic ties, some lacking basic compliance capacity. The EPA’s grant scoring emphasized “equity and environmental justice” as heavily as financial standards, allegedly increasing risks of fraud, waste, and abuse. Congress has repealed GGRF funding, and the EPA has formally referred the case to the DOJ for ethics and conflict-of-interest review. A new congressional oversight report found that a now-defunded Biden program, the Greenhouse Gas Reduction Fund (GGRF), was beset by alleged ethical problems. The House Committee on Oversight and Government Reform released an investigative report, “The Green New Scam: The Greenhouse Gas Reduction Fund,” which documents several suspected issues. “Today’s report from the House Oversight Committee exposes the Biden Administration’s sweeping green energy scheme, designed to funnel tens of billions in taxpayer dollars to enrich Democratic allies and fund partisan, politically motivated projects,” said House Committee on Oversight and Government Chairman James Comer (R-KY). Why it matters After analyzing thousands of pages of documentation, the Oversight Committee found the Biden Administration had used the GGRF to fund left-leaning organizations operated by progressives, many of whom had worked for the Obama and Biden administrations. Report findings: Of the $27 billion earmarked for GGRF, the Environmental Protection Agency (EPA) had awarded $20 billion to eight organizations with ties to the Democratic Party. These nonprofits boosted their financial assets by 2,000,000,000% with taxpayer funding. The EPA ensured funds went to left-leaning organizations by making “equity and environmental justice” an essential criterion in its grant award process, weighing the category the same as financial statements and higher than compliance risk management, consumer protection policies and governance. “One nonprofit receiving funds lacked even the basic capacity to comply with EPA’s reporting requirements,” the report said. Such a skewed grant award process put funding at greater risk of fraud, waste, and abuse, it said. The investigation uncovered taxpayer funds going to six-figure salaries and questionable outlays such as emissions-free brewery equipment and housing for artists. The GGRF was supposed to be implemented under the guidance of Biden’s Justice40 Initiative, which mandated that 40% of the benefits of certain federal funds go to disadvantaged communities. The bigger picture In July, Congress passed the “One Big Beautiful Bill Act,” which repealed Section 134 of the Clean Air Act and rescinded funding for the GGRF. The GGRF was part of the Inflation Reduction Act, which passed in 2022 without a single Republican vote.The GGRF funded three programs: the National Clean Investment Fund (NCIF), Clean Communities Investment Accelerator (CCIA) and Solar for All (SFA). Earlier in this year, EPA Administrator Lee Zeldin terminated the $20 billion in GGRF funding to eight NCIF and CCIA recipients over similar ethics concerns. “The well-documented instances of self-dealing and conflicts of interest, unqualified recipients, and intentionally reduced agency oversight pose unacceptable risk,” Zeldin said. Multibillion-dollar recipients such as Climate United Fund, Coalition for Green Capital, and Power Forward Communities were headed by former heads of agencies within the Obama and Biden administrations. The EPA has referred the GGRF to the U.S. Department of Justice for further investigation into ethics violations. SUGGESTED STORIES U.S. seeks overhaul of liquified natural gas regulations After two decades, the U.S. Department of Transportation is updating its rules for liquefied natural gas (LNG) facilities to support a fast-growing energy export industry. In compliance with the president’s “Unleashing American Energy” execut Read more First-in-nation gas stove warning label law faces legal heat Colorado, the first state to require cigarette-style health warnings on gas stoves, is facing a lawsuit by the Association of Home Appliance Manufacturers (AHAM) to stop the implementation of the law. The law (HB25-1161) passed along partisan lines and signed by the Read more Google signs landmark deal to back gas plant with carbon capture Google recently announced a groundbreaking corporate agreement with Broadwing Energy to utilize carbon capture and storage (CCS) for approximately 90% of the natural gas plant’s CO2 emissions. Google will help finance construction and connect the Decatur, Illinois, Read more
U.S. seeks overhaul of liquified natural gas regulations After two decades, the U.S. Department of Transportation is updating its rules for liquefied natural gas (LNG) facilities to support a fast-growing energy export industry. In compliance with the president’s “Unleashing American Energy” execut Read more
First-in-nation gas stove warning label law faces legal heat Colorado, the first state to require cigarette-style health warnings on gas stoves, is facing a lawsuit by the Association of Home Appliance Manufacturers (AHAM) to stop the implementation of the law. The law (HB25-1161) passed along partisan lines and signed by the Read more
Google signs landmark deal to back gas plant with carbon capture Google recently announced a groundbreaking corporate agreement with Broadwing Energy to utilize carbon capture and storage (CCS) for approximately 90% of the natural gas plant’s CO2 emissions. Google will help finance construction and connect the Decatur, Illinois, Read more
