Illustration: Sarah Grillo/Axios
The Energy Department is weighing deep cuts to its Office of Clean Energy Demonstrations portfolio as Democrats call for an IG investigation into the agency's actions.
Why it matters: A spreadsheet obtained by Axios — and which provides the most detail yet into the agency's thinking about individual demonstration projects — recommends terminating more than $7 billion awarded to 39 projects.
- The cuts, which amount to nearly half the total federal award dollars on the spreadsheet, show that the DOE is getting closer to making final decisions on a major reorganization.
Zoom in: As Axios previously reported, the agency continues to recommend cuts to almost all carbon capture projects and to hydrogen hubs in blue states such as California, Delaware and New Jersey.
- One direct air capture hub, Project Cypress in Louisiana, is still under OCED evaluation, the document shows.
- The DOE has recommended retaining the X-energy and TerraPower advanced nuclear demonstration projects.
- The rationale for retaining projects include: "supports advancing American energy dominance," "supports reducing burdens on American energy," and "unleashing commercial nuclear power."
Projects recommended for termination have no additional explanation on the spreadsheet.
The big picture: Leaked DOE "hit lists" have begun to galvanize Democrats.
- Top House Democrats on energy committees Thursday called for DOE's acting inspector general to investigate the DOE's review and any cuts that may occur.
- Sen. Martin Heinrich also led a letter signed by 26 other Senate Democrats that pressed DOE Secretary Chris Wright to express concern about the reports of "indiscriminately" canceling contracts and program funding.
DOE and the inspector general's office didn't immediately respond to requests for comment.
Between the lines: The spreadsheet suggests money from terminated awards could be reallocated elsewhere.
- Notes next to each terminated award say the date of action is "TBD, pending evaluation of reprogramming potential."
- The DOE's legal team advised agency officials compiling the lists to check with the Office of General Counsel before terminating any award, Axios scooped last month.
