BISMARCK, N.D. -- COVID-19 relief spending by North Dakota officials is drawing scrutiny.

A pair of watchdogs question why the state is using CARES Act money for fracking grants.

In late October, the state approved $16 million in federal assistance for the oil and gas industry, which ended up receiving grants for the fracking process.

But the Dakota Resource Council and the group North Dakotans For Public Integrity (NDPI) say these grants appear to go against CARES Act guidelines and violate the state constitution.

The organizations sent a letter to a pair of key state agencies and federal officials, citing these legal concerns. NDPI President Dina Butcher said transparency issues are at play.

"It just was problematic for a lot of people who turned to one another and said, 'What's this one about?'" Butcher explained. "We couldn't find the information about to whom these grants were being made and what the process was going to be."

Specifically, she contended the action violates the state constitution's "gift" clause.

The North Dakota Industrial Commission received the letter. Gov. Doug Burgum is on the commission, and a spokesman referred to comments made during the panel's meeting this week.

Burgum resisted claims that these grants were "gifts" to the industry. And the budget director previously said the Act's guidelines were met because producers have been negatively impacted by the crisis.

At the time the spending was approved, state officials noted it would create needed jobs within the industry.

Lisa DeVille, a Dakota Resource Council board member representing group affiliate Fort Berthold Power, said that money could have been better spent on tribal members in need.

"This CARES Act money could have been used for my community," DeVille asserted. "It could have been used for other tribal communities for fuel assistance and social services."

She added in her community, they're constructing a new fire and emergency medical services building to help respond to more calls associated with the Bakken oil and gas development.

But she noted tax revenue for the project has stalled, putting her residents and first responders in a tougher situation to deal with the effects from the North Dakota oil boom.

Meanwhile, the state said it will honor information requests made by the groups.

CARES Act spending scrutiny has come up in other states such as Iowa, where money was diverted to technology projects.

By Ashli Blow for Tennessee Lookout.
Broadcast version by Danielle Smith for Tennessee News Service reporting for the Solutions Journalism Network-Public News Service Collaboration

Rebecca Maino would set aside $20 each month for her house repairs. Her aging home in Memphis had a leaky sink, an outdated air conditioner, and holes in the walls.

It just wasn’t enough to cover the costs. On her limited budget, she couldn’t manage to save more money while paying her family’s bills.

“When [contractors] come in and the scope of work that they tell you is thousands of dollars, people that are on fixed incomes that have worked their whole life to pay their home off, they simply cannot afford that,” said Maino. 

Over the years, the inconvenience evolved into a safety concern. With the increasing frequency of extreme weather — like last week’s deadly, subfreezing temperatures — her energy-inefficient home was becoming a health risk. Maino turned to Memphis Gas Light and Water (MLGW) and their weatherization program that could help with improvements. 

As storms intensify, environmental coalitions are backing these assistance programs as a viable climate solution in southern cities like Memphis. Weatherization gives residents the resources they need to protect themselves while reducing energy use from sources that emit climate-altering pollution. It also reduces energy during peak power demands that Tennessee now experiences as people try to stay warm in winter weather.

Weatherization programs have a longstanding presence across the nation. It’s a strong policy framework that MLGW has adapted into a program that is uniquely its own, some of which comes down to Memphis grit: the people behind the program who are dedicated to working hard for their community. 

“I take my job personally, because I came from a challenging upbringing right here in Memphis. I know what it’s like to be cold in the wintertime, hot in the summertime, and not having a lot of necessary needs to be met,” said David Wright, the technician who was assigned to Maino’s case. 

“We can’t rebuild a house all over again,” he said. “We try to make the [recommendations] the best that we possibly can give to a customer and to meet the needs they have.” 

When Wright showed up at Maino’s doorstep, that’s exactly what he did. He walked Maino through the issues while writing a work order that prescribed her a new air conditioner and heater, pipe repairs, and wall patchups. That order also identified the contractors responsible for installing appliances and making the necessary fixes. 

Maino never received an invoice, because the ratepayers had it covered. 

$8.3M in ratepayer donations funds weatherization projects 

In 2016, a MLGW customer-led advisory board told the utility it wasn’t doing enough with Share The Pennies—a small program that rounded up utility bills to the next whole dollar for weatherization services. For three years, customers were given the option to donate their extra change, but many weren’t checking the box. 

The board worked with Memphis City Councilmember Patrice Robinson to propose a resolution that would make Share The Pennies an opt-out program, asking customers to remove themselves if they didn’t want to participate. The city council passed it. 

Margie Borrum-Smith took the calls from unhappy customers. 

“People would say, ‘I don’t want anybody telling me what to do with my money,’ but when they hear about what’s going on, they want to participate,” said Borrum-Smith, who is now the manager of MLGW’s energy services and oversees the Share The Pennies program. 

Customers contributing to the program give about $12 each year, resulting in a collective revenue of $8.3 million. It has funded the weatherization of 935 homes. 

But, managing the program budget is not just about the quantity of work, it’s about the quality of the work, said Borrum-Smith. 

MLGW technicians oversee home projects from beginning to end. To perform services, they are required to hold certification as a home energy rater, an accreditation recognized by the U.S. Department of Energy. 

Trained to conduct ethical inspections and uphold industry standards, they offer cost-saving recommendations and investments in sustainable appliances such as heat pumps—an energy-efficient technology capable of both heating and cooling homes.

During installations, technicians collaborate with a roster of 41 local contractors, with many being small businesses owned by people of color and women. Together, they adhere to a set of standards and code enforcements.

“In the end, the technician has to sign off and the customer has to sign off,” said Borrum-Smith. “It’s the technician that should be asking, ‘are you satisfied?’ Because we shouldn’t let anything pass that should not be like we want it in our home.” 

The demand for weatherization services exceeds what Borrum-Smith’s team can currently meet. In addition to better living conditions, people want more affordable monthly utility bills. 

Memphis has one of the highest energy burdens nationally, where families or individuals allocate a significant portion of their income to utility bills. Thirteen percent of households face energy burdens, nearly 10% higher than the national average, as reported by the American Council for an Energy-Efficient Economy. 

MLGW’s next enrollment period opens on Tuesday. The utility partners with the Metropolitan Interfaith Association to manage the hundreds of people who ask for weatherization services. In past years, they’ve received so many applications, they closed the portal in just a day. 

Borrum-Smith hopes that the program can eventually offer a second enrollment period each year, but this expansion would require more funding. Despite that MLGW receives federal and state funding for weatherization programs, as well as contributions from ratepayers, meeting the pace and scale of demands will require more funding. 

Energy efficiency as a solution in motion 

Weatherization is among America’s oldest resiliency policies. 

In response to the 1973 oil crisis that brought about soaring energy costs, the U.S. The Department of Energy created its weatherization assistance program. Now, nearly half a century later, the Biden administration is using similar approaches as a tool to meet climate targets with unprecedented funding packages for clean energy. 

“Weatherization is key from a climate resilience standpoint,” said Will Bryan, policy director with the Southern Energy Efficiency Alliance. 

“There are two dimensions to this,” he said. “There’s certainly reducing greenhouse gas emissions, which is vital and which weatherization does. The other benefit improves the kind of resilience of a household in the face of climate impacts.”

The impacts of climate change, such as hotter summers and more intense winter storms, pose dual threats to both safety and the operational integrity of energy grids. Tennessee Valley Authority, the energy provider for MLGW, has been grappling with these challenges. 

In recent years, the utilities have implemented rolling blackouts due to high electrical demand that strains its energy grid. Just last week, they jointly issued energy conservation alerts, urging customers to voluntarily reduce their energy usage when temperatures dropped to single digits.

While cohesive emergency plans and the adoption of clean energy sources are imperative for a holistic climate response across Tennessee, these solutions are years away. But weatherization already has a strong policy groundwork. 

That’s why Bryan and his colleagues at SEEA are actively aiding state energy offices now on home energy programs, offering guidance on effective strategies for administering and allocating federal funding. He anticipates that millions of dollars could come through Tennessee because of initiatives such as the Inflation Reduction Act and the Bipartisan Infrastructure Law. These funding packages offer rebates and other funding streams that can be used to directly lower the cost of energy improvements. 

Already, Memphis city planners funneled $500,000 awarded from the American Rescue Plan Act into the Share The Pennies program last year. 

As program managers and energy consultants try to expand their financial resources for weatherization programs, they are grateful to customers like those at MLGW who are helping their neighbors. This accessible and dependable revenue source is something even Share the Pennies participants, like Maino herself, can contribute to. With her monthly utility costs now $30 lower, Maino rounds up her bill, passing on the assistance to others. 

“Everybody wants to be Bill Gates. Everybody wants to be Warren Buffet, but the reality is when you’re a single mother, like I am, I don’t have the liberty to sit here and write a $10,000 or $10 million check,” said Maino. “But rounding up to the nearest dollar, that’s not going to affect anyone’s bottom line.”


Ashli Blow wrote this article for Tennessee Lookout.


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Today is the last day for Pennsylvanians to submit feedback to the Office of the U.S. Trade Representative about a Biden administration proposal to increase tariffs on $18 billion worth of imports from China.

Pennsylvania manufacturers account for nearly 13% of the state's total output and employ almost 10% of the workforce.

Arthur Stamoulis, executive director of the Trade Justice Education Fund, said the tariff plan would safeguard better-paying manufacturing jobs in Pennsylvania and nationwide from unfair import competition.

"The type of imports that are being targeted are all too often made with sweatshop labor and even forced labor," Stamoulis explained. "The tariffs are needed for U.S. manufacturers to be able to compete on a level playing field. So, this is going to be good for jobs in Pennsylvania, and well beyond Pennsylvania."

Stamoulis noted the Biden administration's proposal to increase tariffs on the semiconductor, renewable energy and automotive sectors has garnered more than 2,500 comments. He added the tariffs aim to boost the number of producers and prevent monopolies, particularly in industries dominated by China. However, critics warned they could provoke retaliatory measures and harm international trade relations.

Stamoulis pointed out the combination of tariffs and investments from the CHIPS Act and the Inflation Reduction Act has significantly reshaped America's manufacturing landscape and has led to a manufacturing boom in Pennsylvania and around the country.

"There were more new factories built in the U.S. in 2023 than at any point in the last three decades and these tariffs are going to help protect that investment," Stamoulis contended. "They're designed to prevent unfair imports overseas from undercutting the production of goods made under fair conditions here at home."

Stamoulis added the Office of the U.S. Trade Representative will review the comments and make a final decision about whether, when and how to impose the new tariffs. His group hopes the administration's plan moves forward.

Signatures are expected to be submitted today for a potential fall ballot question which would largely do away with property taxes in North Dakota.

The Secretary of State will review the signatures sent in by petition organizers, who said property owners are in big need of tax relief. A coalition opposing the idea is intensifying efforts to lay out the consequences.

Chad Oban, executive director of the teacher's union North Dakota United, echoed what other skeptics pointed out: The plan does not explain how the lost revenue would be replaced. In addition to key services funded by local property taxes, such as schools and emergency response, Oban warned of other harm.

"People who have money are buying up property all over the country and turning it into rental property or Airbnbs and that kind of thing," Oban pointed out. "That's going to happen here. I mean, if you're an investor, why not buy property in a place where you're not going to pay property taxes?"

He added it could unfold as North Dakota grapples with an affordable housing shortage. An independent analysis by the Legislative Council estimated a statewide revenue loss of $1.3 billion if the proposal becomes reality. Supporters contended North Dakota government consistently overspends and the Legislature should have no problem covering the losses.

Oban emphasized communities would essentially lose local control in setting their budgets. As for asking the state to help out, he argued smaller communities would have a tougher time seeking funds to buy equipment, like a fire truck.

"You're in a rural area and you can't levy property taxes, so you have to go to Bismarck and ask the Legislature to pay for that fire truck," Oban stressed. "Well, Fargo might be asking for a fire truck, too."

He added Fargo has plenty of representatives to request those funds, while smaller communities do not.

Jason Bohrer, president of the coal industry's Lignite Energy Council, which is among the other 60-plus groups to join the opposition campaign, worries about the loss of school funding, saying it would make it harder to attract workers. He warned of another workforce side effect.

"Not only do you not get potentially the person working at the power plant, you also don't that person's spouse working at the local gym or as a teacher in the local school," Bohrer cautioned.