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Padilla, California Democrats Call for GAO Review of Trump Coal Funding Plan

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US Senator Alex Padilla and a group of other California Democratic lawmakers have asked the US Government Accountability Office to investigate the Trump administration's use of Defense Production Act authorities and taxpayer funds to support coal infrastructure projects.

In a letter to GAO Acting Comptroller General Orice Williams Brown dated July 24, the lawmakers raised concerns over the Department of Energy's proposed use of up to $425 million in DPA funds for coal-fired power plants and the planned West Gateway Terminal export project in Oakland, California.

The lawmakers questioned whether DPA funding can legally support the Oakland export facility, arguing that the project is intended primarily for commercial coal exports to foreign markets rather than US national security needs.

"The DPA was intended to scale up domestic industrial capabilities to meet urgent military or national emergency needs," the lawmakers wrote, arguing that using the authority for a civilian export project raises "statutory, legal, and fiscal questions."

They said the projects do not appear to meet the DPA's definitions of "national defense" or "critical infrastructure protection," citing a lack of evidence linking civilian coal exports to military readiness or infrastructure security.

The lawmakers also alleged that the administration may have redirected funds intended for grid modernization and resilience efforts to support the fossil fuel industry and a commercial export venture.

The criticism follows a June 4 announcement by the Department of Energy that it plans to provide up to $500 million in DPA funding for 13 coal-fired power and export infrastructure projects. The package includes up to $425 million for 12 coal fleet projects and up to $75 million for the planned West Gateway Terminal.

DOE has described the Oakland project as a rail-served marine export terminal capable of handling more than 10 million tons of bulk commodities annually. The department said the facility would expand West Coast export capacity and support energy exports to allies including Japan, South Korea, Taiwan, Vietnam, and Malaysia.

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