WASHINGTON D.C. – California lawmakers issued a letter this week denouncing the Trump Administration’s plans to selectively terminate billions in energy investments previously approved by Congress.

The letter, signed by 30 members of the California Congressional delegation, levels claims that the approximately $7.6 billion in Department of Energy grants announced for termination are vindictively selected, pose a risk to the future of the nation’s economy, and are potentially unlawful.

“We write to express our outrage at the unlawful cancellation of nearly $8 billion of crucial Department of Energy grants supporting projects which, if reinstated, would make our country’s electric grids, industrial processes, and workforce stronger, safer, and more resilient,” opened the letter. “Many of these projects had already begun implementation, and their cancellation abandons hardworking Americans for the sake of cheap, partisan retribution. The DOE’s $7.6 billion in cancellations do not bring our country any closer to American Energy Dominance. Instead, they threaten the country’s progress toward reliable, resilient, and affordable energy for all and undermine thousands of American jobs along the way.”

The announcement of the grant terminations came the day the current government shutdown officially started on Oct. 1 of this year with Russell Vought, the Director of the Office of Management and Budget, dubbing the projects the “Green New Scam”, a play on the name of a the proposed legislation which inspired the programs -the Green New Deal- that was scaled down significantly prior to passage and is known as the Infrastructure Investment and Jobs Act.

Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled. More info to come from @ENERGY.

The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA

— Russ Vought (@russvought) October 1, 2025

Monday’s letter noted that over $2 billion in funding terminations directly impact projects in California districts represented by Republicans in Congress.

On Oct. 3, California’s Senators specifically noted the terminations included California’s Alliance for Renewable Clean Hydrogen Energy (ARCHES) Hydrogen Hub, a $1.2 billion public-private hydrogen hub project, funded by the bipartisan Infrastructure Law passed during the Biden Administration.

The program intended to use the $1.2 billion in federal funding to bring together more than 300 organizations across California representing state, county, and city governments; industry; community groups; universities; labor unions; non-governmental organizations; and national labs detailed California’s Senior Senator Alex Padilla in 2023.

“This cancellation forgoes an agreement that garnered over $10 billion in primarily private sector cost share, threatens over 200,000 new family-sustaining jobs and undermines a program slated to save nearly $3 billion in health costs per year, improving the health of Americans that have suffered from some of the worst air quality in the nation,” stated California Governor Gavin Newsom after the announced terminations this month.

The ARCHES hydrogen hub network of public and private groups includes the Central Coast Clean Cities Coalition and The Hydrogen Delivery Company, both located here in Santa Barbara, and two other local projects cited for termination -$2 million for the Community Environmental Council and $8,796,815 for Smartville Inc.- were included in the announced cuts and identified by members of the House Appropriations Committee.

The graphic below, courtesy of the California Governor’s Office, showed the industries that would be most impacted by a move towards the use of hydrogen as a fuel source.

The project was expected to create a functioning hydrogen market by 2030 as part of California’s roadmap to carbon neutrality by 2045 which included a 1,700-fold increase in the use of hydrogen as a fuel source across multiple sectors.

“For California to meet its goal of net zero emissions by 2045, it must decarbonize its transportation sector, which accounts for 50% of the state’s carbon emissions,” explained a Master’s group project at UC Santa Barbara’s Bren School of Environmental Science & Management in 2024. “However, current electric vehicle batteries are not equipped to suit the needs of larger vehicles, like freight trucks or buses. Green hydrogen, or hydrogen made from renewable electricity and water, can fill this gap. However, green hydrogen is currently produced in lesser quantities than carbon-intensive fuels, such as diesel, making green hydrogen an unaffordable fuel option.”

California’s hydrogen project was one of seven nationwide hydrogen generating projects, two of which -California’s ARCHES and the Pacific Northwest Hydrogen Hub- were included in the announced cuts on Oct. 1 of this year.

A full list of the seven regional hydrogen hubs are below:

Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub (MACH2); Pennsylvania, Delaware, New Jersey)

Appalachian Hydrogen Hub (Appalachian Regional Clean Hydrogen Hub (ARCH2); West Virginia, Ohio, Pennsylvania) 

California Hydrogen Hub (Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES); California)

Gulf Coast Hydrogen Hub (HyVelocity Hydrogen Hub; Texas)

Heartland Hydrogen Hub (Minnesota, North Dakota, South Dakota)

Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen (MachH2); Illinois, Indiana, Michigan)

Pacific Northwest Hydrogen Hub (PNW H2; Washington, Oregon, Montana)

All seven hydrogen hubs nationwide were projected to produce more than three million metric tons of clean hydrogen per year, nearly one-third of the 2030 national production goal while simultaneously eliminating an estimated 25 million metric tons of carbon dioxide emission from end uses each year noted Haris Talwar, Regional Communications Director for the Biden Administration when the projects were detailed in October of 2023.

“California and ARCHES will continue to work with our 400+ partners to develop a renewable hydrogen ecosystem that will enable multiple industries to cost effectively transition from fossil fuels to renewable energy,” vowed Governor Newsom regarding the termination. “Greenhouse gas emissions in California are down 20% since 2000 – even as the state’s GDP increased 78% in that same time period all while becoming the world’s fourth largest economy.”

Monday’s letter also noted that a total of 79 projects across California are part of the planned terminations including:

$30 million to build long-term energy storage systems for Valley Children’s Hospital that serves 1.3 million children in the Central Valley region

$13 million for Liberty Utilities’ Leapfrog program to improve energy reliability with an emphasis on rural communities

$500 million for the National Cement Company as part of the Lebec Net-Zero Project that was part of efforts to reduce and capture emissions created by the cement industry

$75 million for the Gallos Glass Project in Modesto that aimed to decarbonize the glass industry

Monday’s letter from members of California’s Congressional delegation concluded by asking Secretary of Energy Chris Wright and Director Russell Vought of the Office of Management and Budget to restore federal funding, but the fate of California’s hydrogen hub is not quite sealed.

“California and ARCHES will continue to work with our 400+ partners to develop a renewable hydrogen ecosystem that will enable multiple industries to cost effectively transition from fossil fuels to renewable energy,” vowed Governor Newsom earlier this month. “Greenhouse gas emissions in California are down 20% since 2000 – even as the state’s GDP increased 78% in that same time period all while becoming the world’s fourth largest economy.”