ALBANY — A legally challenged federal funding freeze instituted by President Donald Trump is having local impacts, throwing the future of an Albany pilot program aimed at decommissioning gas lines into question.
Since 2020, Albany has sought to cut gas services and fully electrify a city block. Described as a “marquee project” by councilmembers Preston Jordan and John Anthony Miki, the effort is meant to serve as a model for how entire communities can efficiently and equitably transition to green energy sources amid a growing climate crisis.
The first-of-its-kind project would need 100% buy-in from service users on whatever block is selected, which would require extensive public engagement. A $200,000 federal grant through the Energy Efficiency and Conservation Block Grant Program was promised to Albany in October 2023 under President Joe Biden to help move that portion of the pilot program forward.
The terms of that grant were agreed upon by the city and the Department of Energy in September 2024 and that two-year engagement process was set to begin this year.
Those plans may now be stalled after Trump issued an executive order freezing federal funding, a pause the current administration has argued is necessary to ensure programs align with new priorities.
Despite a ruling in January that temporarily prohibited the financial freeze, Albany staff say they’re still unable to access the funds. Scheduled check-in meetings with the Department of Energy have also been cancelled, Transportation and Sustainability Manager Justin Fried said during a recent city council meeting.
“We don’t have any direction to change what we’re doing, but we don’t have access to payment to get reimbursed project expenses at this point,” Fried said.
It’s still unclear if or when the city will receive the federal grant dollars given the ongoing legal battle, Fried said.
To keep the project moving as planned, staff has asked the council to allocate $125,000 from the city’s Climate Action and Adaptation Reserve Fund. A total of $143,469 is currently in the fund, which is supported by a tax on gas and electric utilities, known as Measure DD, passed by voters in 2020.
Staff would either return at a later date to request the additional $75,000 or future work on the project would be paused, Fried said.
Jordan and Albany Mayor Robin Lopez were in favor of funding the effort with city dollars, with Jordan arguing that the project could have larger implications for California and its goal to reduce greenhouse gas emissions by 85% by 2045.
Completing the study would also put the city in a good position to compete for additional grants to fund the next construction phase of the project, Jordan said.
“As painful as it is, I’m in favor of allocating this funding. If we do this work, we’re going to be in a very good position to compete for grant funding to actually do the construction, which is way more than the cost of what we’re talking about here,” Jordan said.
Lopez also shared concerns the city would be penalized by the Department of Energy if it didn’t remain on schedule. Instead of pausing the project, he said reserve funds should be used for now as the city and other affected jurisdictions “put Agent Orange to task,” referring to Trump.
Alternatively, Miki said he’s concerned the city would begin implementing an engagement process plan, which was also up for approval, without proper feedback from the Department of Energy, putting the grant into jeopardy anyways.
Councilmember Jennifer Hansen-Romero and Vice Mayor Peggy McQuaid also questioned whether the reserve funds would be better used on other projects like the city’s heat pump rebate program or installing electric vehicle charging stations.
Those concerns were shared by two members of the Albany Climate Action Coalition, Nick Peterson and Lucinda Young.
“As wonderful as this program is, I find myself questioning – this is a lot of money – is this the best use of the money here,” Young said during public comment.
Pausing the pilot program could cause issues, Fried warned. The cost for services could increase and Environmental Justice Solutions, the agency contracted to help with the outreach work, may not be able to hire the interns it needs to help facilitate the outreach this summer without adequate time, he said.
Councilmembers ultimately agreed to delay any official decision until staff provided additional information about the agreement the city entered into with Department of Energy.
Lopez said in an email Monday that the discussion has not yet been scheduled but argued that the decision should be unnecessary, reiterating sentiments shared during the meeting.
“In an ideal world, we wouldn’t need to bring this conversation back to the City Council agenda because our leaders at the federal level would have agency to grow a spine to stand on business when it concerns opportunities to invest in communities that are moving in innovative ways to address the climate crisis,” Lopez said in email. “For now, the work rests on local leaders and incredible city staff to find creative ways to keep projects moving that have been impacted by federal executive orders.”