In a move that has raised eyebrows among conservative circles, the Environmental Protection Agency (EPA) in August allocated billions of taxpayer dollars to a left-leaning nonprofit organization.
The CEO of this organization, the Coalition for Green Capital (CGC), has been vocal about his desire to see the demise of carbon-emitting companies and has advocated for a joint venture with the Chinese Communist Party (CCP) to phase out fossil fuels.
As reported by the Daily Caller, Reed Hundt, CEO of CGC, stated during a webinar held on August 23, "We're engaged in the world-leading mission, or we hope, with China, of changing the way that everything is organized in society, the way that heating and lighting and air conditioning and transportation take place." This webinar was held to discuss the nonprofit's plans for the $5.1 billion grant awarded by the EPA under the Inflation Reduction Acts (IRA) Greenhouse Gas Reduction Fund. This program has been flagged by Republican lawmakers as potentially funding entities with ties to the CCP.
Hundt, who is also the co-founder of CGC, is a known ally of former Vice President Al Gore and a frequent donor to Democratic candidates. He recently attended a Harris Action Fund event in Washington, D.C., headlined by Gore. According to a 2022 tax filing, the CGC had just under $2 million in its bank account. The EPAs inspector general has warned that this program, along with the IRAs $3 billion Environment and Climate Justice block grants provision, is at high risk for waste, fraud, and abuse of taxpayer dollars.
EPAs Inspector General Sean ODonnell, in his testimony to the House Energy and Commerce Environment subcommittee, stated, "$27 billion of the Agencys $41.5 billion in IRA funding for the Greenhouse Gas Reduction Fund, or 65 percent, has already been spent, and approximately 85 percent of all IRA spending is set to be obligated by the end of fiscal year 2026." He further warned that this pace of spending not only increases the risk for fraud but also necessitates urgent oversight.
The IRA, passed by Democratic lawmakers with Vice President Kamala Harris casting the tie-breaking vote, did not allocate any funding to the EPAs inspector general to oversee the $41.5 billion awarded to the agency. During the CGC webinar, Hundt suggested that cooperation on climate change should be a key aspect of the Biden administrations relationship with China.
House Republicans have expressed concerns that the IRAs investments in green energy will benefit China and increase the United States' energy dependence on the CCP. A recent Heritage Foundation report revealed that China accounts for 80% of solar component production and cobalt refining capacity, a crucial component in the production of electric vehicle batteries.
Republican Rep. Buddy Carter of Georgia, chairman of the House Energy and Commerce Environment Subcommittee, criticized the Biden-Harris Administrations 'rush-to-green' agenda, stating, "This is lining Chinas pockets, a nation that is leading in global emissions, with zero oversight. That is dangerous and unacceptable. We must ensure that no taxpayer dollars are used to prop up China, which is a threat to human rights, the environment, and national security. Innovation, not regulation, is the key to reducing emissions and unleashing American energy dominance."
Hundt also appeared to call for the elimination of the entire U.S. fossil fuel industry during the webinar. The Bureau of Labor Statistics reports that over half a million Americans were employed by the fossil fuel industry as of August 2024. Hundt stated, "All of the burning of carbon, all of the businesses and all of the buildings that burn carbon, whether its oil, whether its gas or whether its coal they have to be moving off of the carbon platform and onto the clean power platform. They have to change. If they dont change, they have to end."
Democratic Sen. Joe Manchin of West Virginia, who helped author the IRA, has consistently defended the climate law as having an all-of-the-above energy approach. This is despite the EPAs decision to award billions of taxpayer dollars to nonprofit groups like the CGC that advocate for eliminating the coal and natural gas industries.
Neither Manchins office nor the EPA responded to requests for comment from the Daily Caller News Foundation. The CGC also did not respond to a request for comment.
The EPA announced on August 16 that the agency had obligated the full $27 billion to selected awardees. This move effectively prevents a future Republican trifecta from reclaiming the billions in funding via the budget reconciliation process, should Republicans maintain the House and regain the presidency and Senate in the upcoming November elections.
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