Trump’s $7.6 billion energy cuts hit California grid upgrade

By Ari Natter, Bloomberg

The Trump administration’s plan to cancel billions of dollars for energy projects following the US government shutdown includes an initiative to upgrade electric transmission lines in California.

A consortium that included the California Energy Commission and Southern California Edison was awarded a federal grant of $600 million for the upgrade last year, which was to allow faster access to clean energy. But that project — which was slated to improve 100 miles of transmission lines — will have its funding cut, according to a list from the Department of Energy.

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The department plans to terminate financial awards supporting 223 projects, which is expected to result in savings of about $7.6 billion, according to a statement from the agency on Wednesday. That includes hydrogen hubs in California and the Pacific Northwest, as reported by Bloomberg News.

The cuts followed a review by the department to ensure projects that won funds under former President Joe Biden were financially sound, and consistent with Trump administration policies. The termination of funding can be appealed within 30 days, and some ventures have already begun that process, according to the statement, without identifying them.

The Biden administration previously announced as much as $2.2 billion would be awarded for the hydrogen hubs — a broad network of producers and consumers spanning multiple states — as part of its effort to spur development of the clean-burning source of power.

The funding eliminations for green projects in Democratic-leaning states was flagged by White House Budget Director Russell Vought. It also comes as the Trump administration plans to lean into hardball tactics to pressure Democrats to end the US government shutdown that began on Wednesday.

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