Senate Democrats press DOE to halt coal funding shift from carbon capture programs

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Senate presses DOE on coal funding

Highlights

Senators Murray and Kaptur sent a letter demanding DOE immediately halt plans to shift Infrastructure Investment and Jobs Act funds from carbon capture to coal plant restarts.
The disputed $350 million was appropriated for carbon capture demonstration and pilot programs, but lawmakers say some selected DOE projects lack any carbon capture element.
Lawmakers warn DOE may violate the Purpose Statute and Antideficiency Act, requesting a legal justification and detailed answers by August 7.

Lawmakers challenge DOE funding plan

As reported by Senate Appropriations Committee, citing the Senate Committee on Appropriations, Murray, vice chair of the Senate Appropriations Committee, and Kaptur, ranking member of the House Appropriations Subcommittee on Energy and Water Development, sent a letter to Energy Secretary Chris Wright calling for an immediate stop to the plan.

They argue the department is attempting to use money appropriated under the Infrastructure Investment and Jobs Act for carbon capture demonstration and pilot programs to instead restart and recommission coal-fired power plants. In their letter, the lawmakers say DOE has acknowledged that some funded projects do not include carbon capture and has failed, after months of exchanges, to provide a legal justification they consider credible.

The letter says the department must halt any obligation of funds tied to the DE-FOA-0003605 selections until it can show the spending complies with the law. Murray and Kaptur also request detailed answers from DOE by August 7.

Legal and energy cost implications

The lawmakers say the $350 million at issue comes from two carbon capture programs created to support pilot and demonstration projects, not general coal plant rehabilitation. They contend the statute requires funded projects to integrate carbon capture technologies aimed at improving efficiency, reducing emissions and advancing cleaner energy use.

In their view, using those appropriations for plant restarts, overhauls and reliability upgrades without immediate carbon capture could violate the Purpose Statute and the Antideficiency Act. They also frame the dispute as a household cost issue, arguing that subsidizing uneconomic coal plants raises costs for families instead of supporting cleaner and more affordable energy over the long term.

Our earlier coverage of Canada’s Build Communities Strong Fund highlighted Ottawa’s push to expand and modernize essential infrastructure to support housing growth and community resilience. In North Dundas, nearly $8.5 million in federal funding was earmarked for water distribution upgrades, including new groundwater wells and a storage reservoir, to meet demand from 1,650 new homes as well as local institutions and businesses.

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