Steve DeZenzo, left, and Travis Roux, workers for Royal River Heat Pumps, set an outdoor unit into position at a home in Cumberland in October. Ben McCanna/Portland Press Herald, file
Efficiency Maine Trust, the quasi-state agency that administers energy efficiency programs and disburses heat pump incentives, has lost access to about $15 million in federal funding that would have doubled its capacity to draw private capital for energy efficiency and clean energy programs.
It’s one of more than two dozen nonprofit groups and agencies in the U.S. that the Trump administration has targeted by freezing and later canceling their assets to claw back $20 billion authorized by the Inflation Reduction Act, a signature climate measure signed by former President Joe Biden in 2022.
The Greenhouse Gas Reduction Fund the administration has in its crosshairs seeks to leverage public and private money for clean-energy technologies such as solar panels, heat pumps and other equipment. The money for Efficiency Maine was meant to support its so-called “green bank” that issues loans to homeowners, businesses and governments to upgrade to these kinds of technologies.
Efficiency Maine’s incentives for heat pumps have brought national attention to Maine for its broad use of the electric heating and cooling systems helping to reduce the state’s reliance on oil.
Lee Zeldin, the U.S. Environmental Protection Agency administrator, said the fund is characterized by “material deficiencies which pose an unacceptable risk to the lawful execution of these grants.” By placing the money in a bank, the Biden administration hindered the EPA’s oversight ability, he said.
In addition, the FBI said it has “credible information” that the accounts have “been involved in possible criminal violations,” specifically fraud.
A spokeswoman said Efficiency Maine Trust will not comment on the Trump administration’s actions, but confirmed that its $15 million grant is at stake. Two other organizations with offices in Maine — United Way and Habitat for Humanity — were cited in the FBI memo and did not respond Thursday to requests for comment about the future of their funding.
Climate United Fund, a public-private investment fund and recipient of federal money, said in a lawsuit against the EPA that Zeldin “has publicly expressed concerns about transparency and oversight and has falsely claimed that funds were rushed out of the EPA.”
“Robust reporting and accountability measures” are detailed in its contract with EPA “and the agency has full visibility into transaction-level data and awardees’ Citibank accounts,” Climate United said in its suit. Details about terms and conditions, the selection process and plans submitted by those who received funding have been available on the EPA’s website since August 2024, it said.
Efficiency Maine Trust said in its 2024 annual report that it coordinated with the Coalition for Green Capital, a successful lead applicant to a grant competition for the Greenhouse Gas Reduction Fund program. The trust said it expected to receive about $15 million, enough to double the Efficiency Maine Green Bank.
The additional money would allow the trust to expand its offerings. It commissioned an online lending platform and brought on a provider for lending services. And the trust said it fostered strong relationships with green banks nationally to organize a negotiating block for federal funding and exchange information about best practices.
FRAUD ACCUSATIONS CHALLENGED
Accusations of possible fraud drew pushback in Washington. The head of the criminal division in the U.S. attorney’s office resigned last month after declining to comply with the Trump administration demand to freeze the assets of the environmental grant and launch a criminal investigation, The Washington Post reported.
And a federal judge on Wednesday pressed the Trump administration for evidence of fraud, waste and abuse in the climate funding program. U.S. District Judge Tanya Chutkan said she would order the administration to file a sworn statement by Monday detailing the evidence used to justify ending the grant.
Attempts to eliminate the Greenhouse Gas Reduction funding are in line with other environmental policy changes by the Trump administration, such as halting zero-carbon funding for wind power, and promises to expand drilling for oil and natural gas.
