Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC) sent a letter to Department of Energy (DOE) Secretary Jennifer Granholm raising concerns that the DOE and President Biden are using a wartime statute to funnel Inflation Reduction Act (IRA) subsidies to the Biden administration’s favored energy industries. 

BACKGROUND:  

• On November 17, 2023, the DOE announced that it was awarding $169 million for nine projects to manufacture electric heat pumps.  
• It is the members’ understanding that the awards are being carried out pursuant to an executive order, which broadened the Defense Production Act (DPA) for the purpose of expanding the domestic production capacity for electric heat pumps. 
• President Biden’s executive order waived numerous statutory requirements in the DPA meant to inform and justify such actions to the public and Congress.  
• By waiving these requirements, the public and Congress have been left in the dark as to the justification for these actions and without any assurances that this program will help reduce America’s energy reliance on adversaries, like Russia and China.  

Chairs Rodgers and Duncan asked Secretary Granholm to respond to the following questions by January 5, 2024: 

• Has the Department of Defense or the DOE issued any report identifying electric heat pumps as essential to national defense? 
• According to the International Energy Agency, China is the largest producer and exporter of heat pumps. Will you provide the Committee with information verifying that none of the funds awarded will be made available either directly or indirectly by China or its affiliated entities? 
• Will you provide the Committee with information the DOE has justifying that there is a shortfall of electric heat pumps severely impairing national defense capabilities? 
• Will you provide the Committee with information the DOE has indicating a domestic industrial base shortfall for electric heat pumps prior to the November 17 awards? 
• Will you provide the Committee with information the DOE has justifying that the $169 million in grant funding is the most cost effective, expedient, and practical alternative method for meeting electric heat pump needs? 
• The DOE Heat Pump DPA Program stated its Purpose and Strategic Goals will aim to, “[e]xpand United States electric heat pump manufacturing to reduce the amount of energy needed in our buildings, leading to less reliance by the U.S. and allies on adversaries, such as Russia, for oil and gas.” There was no citation provided for this statement detailing how electric heat pumps will reduce reliance on adversarial sources of energy. Can you provide the study, research, or applicable materials supporting this claim? 
• Because approximately $339 million in DPA funds from the IRA remain and the President has issued separate determinations expanding the DPA to produce solar, transformers and electric grid components, insulation, and electrolyzers, fuel cells, and platinum group metals, will you commit to providing the Committee with appropriate explanatory materials that justify the use of the DPA for these energy resources should further awards be announced?

CLICK HERE to read the full letter to Secretary Granholm.