U.S. Sen. Martin Heinrich, a New Mexico Democrat, is calling on U.S. Department of Energy Secretary Christopher Wright to uphold funding commitments for projects authorized under President Joe Biden’s administration.
Heinrich joined U.S. Sen. Patty Murray, D-Washington, and 25 other Democratic senators in sending a letter to Wright after news organizations reported on a “hit list” of projects that could lose funding. That list of projects included an electric vehicle battery repurposing operation in Santa Fe.
Heinrich and Murray maintain that canceling the federal funding for these projects would break existing agreements, harm deployment of new energy resources and lead to lost jobs.
In the letter, the senators say hydrogen hubs, carbon capture facilities, critical mineral and battery storage projects that have already received federal funding from the Inflation Reduction Act, the bipartisan infrastructure law or annual appropriations bills are on the list.
“You assured us during your confirmation hearing that you believe that legal agreements should be honored (including managing the financial commitments you have inherited) and that you will follow the law,” the letter states. “Indiscriminately canceling program funding and executed contracts, and refusing to execute on the funding directives Congress enacted, neither honors existing agreements nor is consistent with the spending laws that have appropriated funding for specific purposes.”
The letter further states that Congress has authorized the spending and the president does not have the authority to “substitute his policy preferences for requirements in law.”
“Dissolving contracts, cancelling grants and loans, and reneging on loan guarantees without any intention to execute the laws is not only illegal, but is harmful to the public and energy consumers,” the letter states. “Your indiscriminate cancellations of spending will increase energy prices, make our grid less secure, and stop energy innovation.”
The senators requested Wright provide a detailed list of grants, loans and loan guarantees that he believes should be rescinded along with explanations as to why he believes they should be rescinded.
During a visit to Sandia National Laboratories, Wright told reporters that projects that have already received allocations would not lose federal funding.
“There’s a lot of great projects. There may be some areas that we don’t think are the most productive use of taxpayer funds, but when agreements are in place, of course, we will follow the law,” he said in response to questions asked by NM Political Report during his Feb. 25 visit to New Mexico. “There’s unallocated funds in both of those bills as well, and I think we’re going to have some opportunities to direct those towards the greatest bang for the buck.”
