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Could California lose out on billions of climate-related grants because it moved too slowly?
Will $3.8 billion in climate grants get caught up in the California vs. Trump tussles?
(
Mark Schiefelbein
/
Associated Press
)
Topline:
The Trump administration is pulling the plug on billions of dollars of climate projects right as they get off the ground. That's now a worry for California because roughly 98% of the climate, energy, forest and transportation dollars obligated to California-based local governments, companies or nonprofits from the Biden-era Inflation Reduction Act are unallocated and vulnerable to cancellation.
The backstory: A review of federal spending data by analytics firm Atlas Public Policy, shared with Politico, shows that spent funds include $3 million for small-scale solar projects and $4.4 million in community climate projects — but those are tied to bigger programs the Trump administration has terminated. And they're just a fraction of the billions promised to the state in the 2022 legislation.
Projects in limbo: Annabelle Rosser, a senior policy analyst at Atlas, said remaining grants are vulnerable to clawbacks, putting millions in climate money in limbo. That includes a carbon-capture project by the National Cement Company. Jon Dearing, National Cement's vice president, said the company is appealing the termination of its $500 million award to make "carbon neutral" cement at its factory in Lebec, near the Grapevine. A final decision from the Department of Energy could take weeks or months — meanwhile, the company's six-year phased project is shrouded in uncertainty.
What's next: The fate of community climate grants are is in the hands of the courts after legal challenges. If Sacramento wants to step in to pick up the tab, the clock is ticking: The end of the legislative session is Sept. 12.
Read more in POLITICO’s California Climate newsletter.
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