Energy Secretary Chris Wright recently testified before two House committees on the Department of Energy’s Fiscal Year (FY) 2027 budget request.
He testified before the House Energy & Commerce’s Subcommittee on Energy and the House Appropriations Subcommittee on Energy and Water Development.
Grant Reviews/Cancellations
A major focus of the hearings was the status of DOE grants issued by the previous administration.
Previously, DOE announced a review of grants and, in some cases, indicated its intention to rescind certain grants.
However, Wright shared that DOE’s review of over two thousand grants has concluded, with many moving forward either as originally selected or with modifications.
Wright received many questions from Democrats on the committees about the process, including whether it was politically motivated and the impact of the review on trust in DOE grantmaking.
He maintained that the review was not politically motivated and was warranted based on the volume and speed of grantmaking under the Biden administration.
He repeatedly emphasized that over 80 percent of reviewed projects were approved and many canceled projects lacked “meat on the bones” but that DOE is willing to re-engage with applicants where mistakes may have been made.
Artificial Intelligence (AI)/Data Center Impacts
Rep. Marcy Kaptur (D-OH) said that AI driven data center expansion is triggering public backlash because these facilities require large electricity loads that strain local grids and raise prices.
She described instances in which township trustees face large land purchases by large companies, which she said fuels fear that residents will be “overpowered” by projects that drive up utility costs.
Kaptur urged the administration to steer development toward brownfields and urban industrial sites where grid infrastructure already exists, rather than rural farmland. Secretary Wright said he agreed and cited DOE’s Portsmouth, Ohio, brownfield project as a model. He also acknowledged that public sentiment toward AI is turning sharply negative. He highlighted the White House’s ratepayer protection pledge and stressed that the government needs to communicate the benefits of AI more effectively or the backlash could jeopardize AI related energy development.
BPA Leadership/Lower Snake River Dams (LSRD)
Rep. Dan Newhouse (R-WA) referenced the ongoing search for the next administrator of the Bonneville Power Administration (BPA) and stressed the importance of selecting a BPA administrator with deep regional expertise.
Wright agreed and said he is personally engaged in the process.
Newhouse also defended the Lower Snake River Dams and cited their hydropower, irrigation, and navigation benefits. Wright said he strongly supports preserving the dams and argued that hydropower is essential dispatchable energy, and that environmental arguments against the dams are often ideological rather than scientific.
In response to questions from Rep. Cliff Bentz (R-OR), Wright expressed support for adjusting the BPA administrator’s salary to attract top talent for that role.
Tax Credits/202(c) orders
Wright expressed concerns about the impact of blue-state policies on energy prices and inefficiencies in tax credits for wind and solar power.
He said DOE is doing everything possible to keep dispatchable power on the grid, including using Federal Power Act 202(c) orders to keep coal plants online. When questioned about the cost implications of 202(c) orders, he said the cost of grid instability and blackouts is much higher and that coal plants have kept our grid stable and prices down for decades.
Permitting/Permitting Reform
Rep. Mike Cloud (R-TX) praised DOE for focusing on affordability and asked how the agency is accelerating project development. Wright argued that the Biden administration weaponized NEPA to block project construction and that DOE has restored the law’s original intent.
He called for congressional action on broader permitting reform, including Clean Water Act Section 401 and the National Environmental Policy Act, to allow the U.S. to build more energy infrastructure. Wright emphasized that the administration’s goal is to increase energy supply and lower prices against what he said were Biden era policies that intentionally raised energy costs. He said parity between the siting of natural gas pipelines and electric transmission lines is a topic “very worthy of discussion,” but otherwise did not weigh in on any specific proposals or legislation.
Rep. Susie Lee (D-NV) raised concerns about Interior Secretary Burgum personally approving every solar and wind permit, which she says has stalled projects in Nevada. Wright agreed that permitting should not be weaponized and committed to discussing the issue with Interior.
Grid Security
Rep. Jennifer McClellan (D-VA) specifically asked about the president’s budget request that proposed eliminating funding for the Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance (RMUC) Program, a program that was recently reauthorized by the Energy & Commerce Committee and which APPA strongly supports.
Wright did not address RMUC specifically but agreed that cybersecurity is critical.
Wright also discussed issues tied to spent nuclear fuel, nuclear deployment/EDF Program and Colorado River hydropower.
