Congressional Republicans have asked the Administrator for the Environmental Protection Agency (EPA) Lee Zeldin for a briefing on grants and funding awarded by the agency under the Biden Administration, signaling their interest in entering the controversy.
In the letter to Administrator Zeldin, House Oversight and Government Reform Committee Chair James Comer (R-Ky.) and Rep. Eric Burlison (R-Mo.), Subcommittee on Economic Growth, Energy Policy and Regulatory Affairs Chair, asked for a briefing “to better understand what EPA is uncovering about the Biden Administration’s allocation of funding resources to outside groups and its novel agreements with financial institutions to escape oversight.”
In the letter, Comer and Burlison raised concerns about the Biden Administration depositing $20 billion to Citbank as part of the Greenhouse Gas Reduction Fund (GGRF) grant program. Earlier this month, U.S. District Judge Tanya Chutkan temporarily blocked the Trump Administration from terminating these awards. However, the ruling does not permit grantees from drawing from the funds either.
The March 20 letter appears to be part of a larger coordinated effort to claw back EPA expenditures made by the previous administration under the Inflation Reduction Act (IRA). As we previously shared, the House Energy and Commerce Committee recently revealed its oversight plan for the 119th Congress, focusing on clean energy and advanced technology programs authorized under the Energy Policy Act of 2005, the Infrastructure Investment and Jobs Act (IIJA), and the Inflation Reduction Act (IRA).
Meanwhile, four Democratic Attorneys General led by Minnesota AG Keith Ellison – are suing the EPA for the climate grant cancellations, arguing that EPA’s actions violates fundamental constitutional guarantees of liberty in the separation of powers.”
Should you receive an inquiry from Congress, be it a letter or a phone call, take notice of the due date for a response.
When Congress initiates an inquiry, an initial request letters typically provides an exceedingly short time to respond, traditionally within two weeks of receipt. While this deadline is often negotiable, the optimal time to prepare for a Congressional investigation is before you hear from Congress.
Understanding potential political risks allows a company’s leaders to proactively take steps, on their own schedule, to reduce the impact of an investigation. These steps range from implementing appropriate records retention policies to conducting tabletop exercises, to engaging proactively with advocates on Capitol Hill.
Taking these steps before you hear from Congress empowers a confident response, allows for the development of a strategy to diffuse the conflict, and avoids the consequences of receiving a Congressional subpoena.
Should Congress request records or testimony, it is still very feasible to come to the table and negotiate an optimal outcome that avoids unnecessary exposure, while also responding to Congress with integrity.
If you receive a Congressional inquiry, call us. Womble Bond Dickinson (US) LLP has a team of leading practitioners with nuanced experiences guiding and advising clients through Congressional investigations.
Click here to read our previous client alert, “Congress Puts DOE & EPA Grants/Loans Under the Microscope.”