The U.S. Environmental Protection Agency (EPA) has formally referred the Greenhouse Gas Reduction Fund (GGRF) to the agency’s Acting Inspector General (IG) for investigation, citing serious concerns over financial mismanagement, conflicts of interest, and oversight failures allegedly occurring under the previous administration.
In a letter to the Acting IG, the EPA detailed what it described as “well documented and concerning” issues demanding further scrutiny. The referral comes amid ongoing comprehensive reviews of the GGRF and parallel investigations already underway by the U.S. Department of Justice and the Federal Bureau of Investigation into potential misconduct.
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EPA Administrator Lee Zeldin framed the action as a necessary step towards fiscal responsibility. “It is my pledge to be accountable for every penny the EPA spends,” Zeldin stated. “This marks a stark turn from the waste and self-dealing of the Biden-Harris Administration intentionally tossing ‘gold bars off the Titanic.’ The American people deserve accountability and responsible stewardship of their tax dollars. We will continue to deliver.”
The referral letter highlights specific examples that raise alarms. One instance cited involves an organization linked to political figure Stacey Abrams, which reportedly received a $2 billion grant award despite declaring only $100 in revenue in 2023. According to the EPA, this grant represented 20 million times the organization’s reported revenue. Further fueling concerns, the grant agreement allegedly gave the organization 90 days to complete basic “How to Develop a Budget” training, while simultaneously instructing it to begin spending the funds within the first 21 days of that period.
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“Recent findings reveal a pattern of reckless financial management, blatant conflicts of interest, astonishing sums of tax dollars awarded to unqualified recipients, and severe deficiencies in regulatory oversight under the prior administration,” the EPA letter stated.
The agency has offered its full cooperation and resources to the IG’s office to facilitate a “full and thorough investigation” into the GGRF’s management and disbursement of funds.
“[W]e will continue to aggressively pursue enhanced oversight, answers, and accountability,” the letter concluded. “We stand firmly alongside the Office of the Inspector General in our shared mission to eliminate waste, fraud, and abuse with the EPA.”
The Inspector General’s investigation will now proceed independently to assess the allegations surrounding the multi-billion dollar fund established to support clean energy projects.
Editor’s Note: Correspondence from attorneys representing CGC and Mr. Jahi Wise, says, “The attached publication/communication suggests that Mr. Wise failed to recuse himself in connection with the EPA’s consideration of CGC’s grant application and EPA’s award to CGC under the Greenhouse Gas Reduction Fund (“GGRF”). That suggestion is false. Consistent with EPA policy concerning conflicts of interest, Mr. Wise was barred from participating in the review, evaluation, selection, or approval of funding for applications in any GGRF grant competitions for which CGC submitted an application. And, in fact, he did not review applications from CGC or its competitors for GGRF funding, nor did he participate in the selection of CGC for a GGRF award. This is clearly the case, as shown in recent court filings as well as communications between Mr. Wise’s lawyers and the U.S. Department of Justice. See, e.g., Climate United Fund v. Citibank, N.A., No. 25-cv-00698 (D.D.C.), Dkts. 33-27, 60.”
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