leaked doc reveals the chaotic politics behind trump energy department cuts

Department of Energy Award Cancellations: A Deeper Look

Recent actions by the Department of Energy have resulted in the rescission of approximately $8 billion in awarded funds. While initially presented as a measure to favor fossil fuels over renewable energy sources, documentation acquired by TechCrunch reveals a more nuanced situation.

Analysis of Canceled Contracts

The Department of Energy has not publicly disclosed a comprehensive list of the canceled awards. However, TechCrunch has obtained and analyzed a document detailing 321 contracts the DOE intends to terminate.

It’s important to note that not all impacted projects were exclusively focused on renewable energy technologies.

Projects Supporting Fossil Fuel Industries

Among the canceled awards were two significant grants: one totaling $300 million allocated to Colorado State University, and another for $210 million designated for the Gas Technology Institute. Both initiatives were designed to assist oil and gas companies – both large corporations and smaller producers – in minimizing methane emissions from their operational wells.

The Gas Technology Institute, a research and development organization primarily serving the natural gas sector, experienced the cancellation of a dozen awards, amounting to a total of $417 million.

Impact on Carbon Capture and Removal

Investments in carbon capture and removal technologies were also affected, with 10 out of 21 projects – representing around $200 million in funding – being canceled. A correlation exists between project location and voting patterns in the last presidential election, although this is not the sole determining factor.

Geographical Distribution of Cancellations

“Three key factors are becoming apparent,” explained Erin Burns, executive director at Carbon180. “The geographical location of the projects, the organizations involved as partners, and the anticipated progress of these initiatives are all under scrutiny.”

States that supported Kamala Harris in the previous presidential election experienced the most substantial cuts. California suffered the largest losses, with at least $2.2 billion in contracts revoked. Colorado, Illinois, Massachusetts, Minnesota, and Oregon each saw approximately $500 million in awards eliminated, while New York State lost at least $309 million.

Conversely, states that voted for Donald Trump generally had contracts canceled worth only single-digit millions of dollars.

Significant Project Cancellations

A major award, valued at $467 million, was rescinded from the state of Minnesota. This funding, allocated through the Bipartisan Infrastructure Law in 2021, was intended to modernize electrical grid interconnections across seven Midwestern states. Completion of this project would have enabled approximately 28 gigawatts of new generating capacity, primarily from solar and wind sources. For comparison, Goldman Sachs estimates the world’s data center infrastructure currently consumes 58 gigawatts.

Another substantial award, totaling $630 million, would have modernized California’s electrical grid through the testing of advanced conductors and dynamic line rating devices to enhance transmission capabilities. This project was envisioned as a demonstration of grid modernization techniques applicable nationwide.

Impact on Tribal Communities

A further grid modernization project, valued at $250 million, would have established a transmission line serving the Confederated Tribes of Warm Springs in Oregon. This infrastructure would have facilitated grid connections for approximately six renewable energy projects currently awaiting access. The project also included the installation of fiber-optic lines along the transmission route, bringing high-speed internet access to a rural area.

Political Alignment and Funding Priorities

“It appears that recipients in states with Democratic leanings who are aligned with the current administration, or operate within prioritized industries, were more likely to retain funding,” stated Courtni Holness, managing policy advisor at Carbon180.

The Nature of Energy Innovation Funding

Some of the smaller awards may have been subject to cancellation regardless. “The U.S. often adopts a broad approach to energy innovation,” Burns noted. “Numerous projects are funded with the understanding that not all will succeed regionally, technologically, or economically. It’s a strategy of taking many ‘shots on goal’ at a relatively low cost.”

Shifting Investments and Predictability Concerns

Furthermore, some companies are considering relocating to regions with more stable government support and policies, such as Canada. “This trend is impacting private sector investment,” Burns added.

“A larger concern arises,” Holness concluded, “regarding the stability of the Department of Energy and its capacity to serve as a reliable partner for U.S. businesses, offering a degree of predictability in its actions.”