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Department of Energy Pulls Plug on Climate Projects

  • fmendoza659
  • Jun 23
  • 2 min read

Updated: Jul 9


The Department of Energy’s (DOE) recent cancellation of $3.7 billion in “clean” energy project funding, which affects two dozen projects nationwide, including three in California, has sparked outrage from state leaders. However, for many Californians frustrated by rising energy costs, missed climate targets, and the lack of tangible results, this move is welcomed.


Among the canceled California projects were a $500 million “carbon-neutral” cement plant in Lebec, a $270 million carbon capture facility in Yuba City, and a $75 million hybrid electric furnace pilot at Gallo Glass in Modesto.


These projects were funded under the Biden-era Office of Clean Energy Demonstrations and focused on experimental carbon capture and industrial decarbonization. But according to DOE Secretary Chris Wright, they failed a critical test: delivering real value to taxpayers.


Secretary Wright was blunt in his reasoning: “These projects do not advance the energy needs of the American people.” In other words, these were not shovel-ready solutions; they were speculative science experiments paid for with tax dollars.


California already struggles with the nation’s highest gas prices and a strained electric grid that buckles under summer demand. The focus coming from the Department of Energy is that if the project can't help lower costs, boost reliability, or increase domestic energy production, then it’s fair to ask whether it belongs on the federal books.


The Department of Energy clearly points out that this isn’t an anti-environment stance; rather it’s a pro-accountability stance. The DOE states that it conducted a financial review of each project before termination. If these ventures couldn’t justify their costs or demonstrate a pathway to success, then cutting them was the responsible decision.


While critics called the decision political, the Trump administration would counter with: Ambition is important. But results matter more.


 
 
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