In the News

DOE official clashes with Dems over grants, Venezuela

The department's cybersecurity chief fielded questions during a hearing on energy infrastructure security.

A House Energy and Commerce hearing Tuesday gave Democrats a rare chance to press a senior Department of Energy official on the administration’s recent cancellation of clean energy grants in blue states, the agency's role in Venezuela's oil and its broader approach to renewable energy.

Alex Fitzsimmons, head of DOE’s Office of Cybersecurity, Energy Security and Emergency Response, appeared before the panel as lawmakers reviewed draft cybersecurity legislation.

But Democrats used the hearing to question him in his additional role as acting undersecretary of energy, a position he has held since October.

Much of the exchange centered on a federal judge’s order Monday directing DOE to reinstate nearly $28 million in Biden-era grants that were canceled earlier this fall.

Those awards were part of a broader $8 billion tranche of funding terminations that Democrats and clean energy advocates have described as politically motivated retaliation against blue states.

Fitzsimmons rejected that characterization and the judge's determination, arguing that the decisions were based on project-specific concerns rather than politics.

“We are stewards of taxpayer resources,” Fitzsimmons said. “We look at projects on an individualized basis, and we make decisions about whether they have a path to technical viability, economic and financial feasibility.”

Democrats pointed, however, to court filings in which the administration officially acknowledged that a primary reason grants were selected for termination was because the recipient was located in a “blue state."

“The court filing says the primary reason for the selection of which DOE grant termination decisions were included in the October tranche was whether the grantee was located in a blue state,” said Energy and Commerce ranking member Frank Pallone (D-N.J.). “That kind of contradicts what you just said.”

The fate of a separate internal list that has circulated in Washington suggesting additional grant cancellations could be forthcoming in both red and blue states.

Venezuelan oil

Lawmakers also pressed Fitzsimmons on the administration’s discussions with the fossil fuel industry over Venezuelan oil supplies following the arrest of Venezuelan President Nicolás Maduro.

President Donald Trump last week announced plans to refine and sell up to 50 million barrels of Venezuelan oil that had been stuck under a U.S. blockade, along with a longer-term proposal for U.S. oil companies to invest billions in revamping the country’s oil production.

Some industry executives have expressed skepticism about the plan. Democrats on Tuesday sought clarity on the structure and participants in the arrangement.

“You’re saying there is a deal for the United States to be involved in oil production in Venezuela,” said Rep. Lizzie Fletcher (D-Texas). “But is this a trade deal? Who are the parties involved?”

Fitzsimmons declined to characterize the arrangement as a trade deal and offered few specifics, referring lawmakers back to the president’s public comments.

“The parties are the people of Venezuela, the government and the U.S. energy industry,” Fitzsimmons said. “It is going to bring tremendous benefits, both to the people of Venezuela, who will rebuild their energy industry, and to the American people in the form of lower energy prices with more oil in the market.”

Wind, solar, batteries

Democrats did, however, find some common ground when Fitzsimmons acknowledged battery storage as a potentially reliable source of baseload power.

Under Energy Secretary Chris Wright, DOE has emphasized technologies it views as capable of operating continuously, particularly during periods of peak demand and grid strain. That focus has often led department officials to downplay wind and solar generation due to their intermittent nature.

Fitzsimmons said Tuesday that batteries would remain part of DOE’s investment strategy.

“You can build as much non-dispatchable electricity generation as you want; it does not obviate the need for more reliable dispatchable generation,” he said. “That includes resources like nuclear and gas and coal and, yes, batteries.”

That view at least partly aligns with Democrats’ longstanding argument that solar paired with battery storage can provide reliability comparable to traditional baseload sources.

Many solar projects remain in limbo as the Interior Department continues to enact a policy that requires Secretary Doug Burgum's sign off on routine permitting decisions. Rep. Scott Peters (D-Calif.) said in California that the agency "is not even processing solar permits."

Fitzsimmons said he could not speak to Interior decisions. He also offered little comfort to Democrats that wind power and offshore wind would receive increased support from DOE.

“Offshore wind is some of the most expensive energy that exists,” he said. “We need capacity that gets accredited by the grid operators, and that is dispatchable power.”

View this article in E&E News.