By While many others the in the Biden administration waited with bated breath to see if they would receive “preemptive” pardons, Biden’s Secretary of Energy was doling out the cash. In one of its final significant actions, the Biden administration’s Department of Energy approved a substantial package of green energy loans totaling $22.9 billion, triggering concerns about potential conflicts of interest linked to Energy Secretary Jennifer Granholm. The funds primarily benefit utility companies, including some with deep connections to her tenure as governor of Michigan.
The packages defied the department’s inspector general, who called for the program to be shut down, reported The Washington Free Beacon.
The Department of Energy’s Loan Programs Office announced Thursday that it awarded a staggering $22.9 billion in loan guarantees for utility companies to develop green energy projects across 12 states. More than $14 billion of that total was awarded to DTE Energy and Consumers Energy, the two companies with ties to Granholm, solely for projects in Michigan.
In addition, on Friday afternoon, the office announced a $1.3 billion loan for Michigan Potash Company to help fund a sustainable fertilizer plant in Osceola County, Michigan.
DTE Energy’s political action committee contributed more than $34,000 to Granholm’s 2006 gubernatorial campaign, according to state records. Then-DTE Energy CEO Stephen Ewing, whom Granholm appointed to serve on the state’s Early Childhood Investment Corporation Executive Committee, personally donated another $3,400 to Granholm’s campaign in 2004.
Consumers Energy’s political action committee gave Granholm’s gubernatorial campaign $25,000 in that same timespan, additional data show. And Brandon Hofmeister, the company’s current senior vice president of strategy, sustainability, and external affairs, served as Granholm’s energy and climate policy adviser and deputy legal counsel when she was governor.
The outsized lame duck spending benefiting Michigan is the latest activity from the Loan Programs Office to raise questions about the integrity of the office’s spending programs. Since the 2022 Inflation Reduction Act reactivated the office, giving it tens of billions of dollars in lending authority and making it a central pillar in the Biden administration’s climate agenda, it has unveiled an eye-popping $107.4 billion in green loans, the vast majority of which has come following President-elect Donald Trump’s victory in November, according to a Washington Free Beacon analysis.
Despite warnings from the DOE’s inspector general in December about potential non-compliance with conflict-of-interest rules and a high risk of fraud, the department proceeded with the loans. The inspector general had recommended halting the program temporarily to enhance oversight and transparency, but the Loan Programs Office has continued to distribute substantial funding. Since the Inflation Reduction Act of 2022 revitalized the loan program, over $107 billion has been approved, aligning with President Biden’s broader climate agenda.
Criticism of the program’s operations extends to its leadership. Jigar Shah, head of the Loan Programs Office, faced scrutiny for previously holding financial stakes in Plug Power through his investment firm, according to The Free Beacon’s investigation into the matter earlier in the month. The DOE recently approved a $1.7 billion loan for Plug Power, further fueling allegations of compromised impartiality.
Granholm has faced significant criticism for ethical lapses throughout her tenure, including allegations of profiting from her position and violating financial disclosure laws. Last summer, a watchdog group demanded her resignation, accusing her of holding stock in companies influenced by the Department of Energy. The controversy intensified during her testimony before the Senate Energy and Natural Resources Committee, where Senator Josh Hawley accused her of perjury and violating the STOCK Act by failing to disclose $240,000 in stock sales on time. Hawley also criticized the Department of Energy’s allowance for senior officials to hold stocks related to its work, calling it “institutionalized corruption.”
Granholm’s financial dealings have drawn scrutiny beyond her personal stock transactions. She previously held shares in the electric vehicle company Proterra, which received federal support and was touted by President Biden as a key player in the clean energy sector. Granholm sold her shares for $1.6 million following a presidential endorsement of the company, citing an ethics agreement. However, critics argue the timing raises serious ethical questions, particularly as Proterra has since declared bankruptcy. These controversies have led to accusations that Granholm leveraged her cabinet position for financial gain while failing to enforce ethical standards within her department.
In addition to financial concerns, Granholm has been criticized for violating the Hatch Act, which prohibits federal officials from engaging in partisan political activity. In 2022, a government watchdog concluded that she violated the act by publicly supporting Democratic policies during a live interview but declined to press charges, citing her lack of training on the matter. This leniency has fueled accusations of preferential treatment for Democratic officials. Senator Hawley has called for Granholm’s resignation, citing her ethical breaches and the need for greater accountability within the Department of Energy.
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