“Consider us the canary in the coal mine,” says a statement from Zero Emissions Northwest.
Zero Emissions Northwest (ZEN), which received a competitively awarded contract under the federal Rural Energy for America Program (REAP), said in a press statement that it has “received details” that an executive order issued by President Trump is preventing payment on invoices it submitted for work completed in the last quarter of 2024.
REAP is a U.S. Department of Agriculture program that provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.
In response to the unpaid invoices, Zero Emissions Northwest has furloughed all its employees but is not closing its doors. While the executive order pauses all Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law disbursements for at least 90 days, ZEN’s statement says “It could be longer. No one knows.”
ZEN works with farmers and small businesses in eastern Washington State and Idaho. Its statement explains:
“Right now, our farmers and clients have $1.9 million in projects under construction and over $250,000 in delayed reimbursements due to the president’s executive order. These farmers, laundromat owners, and rural grocery stores took on debt and dipped into their savings, trusting that the grants they were awarded would be paid. Due to Trump’s recent executive order, we’ve advised all clients to pause all future investments as we no longer have confidence that signed contracts will be honored.”
“Consider us the canary in the coal mine,” the statement says. It explains that many businesses that have not recently applied for reimbursement may not realize their funding is frozen, and that shutting down the IRA and infrastructure bill payments will damage more than just rural energy grants. “More furloughs and layoffs will follow as purchase orders are canceled, delayed, and forgotten.”
David Funk, president of ZEN, said in a LinkedIn post “Our focus remains finding the best way to navigate this for our customers, many of whom voted for this new administration. We are hoping that the U.S. government will honor its obligations here.”
One commenter on that post suggested that the organization reach out to U.S. Senators and Representatives, “ask the farmers to do that, too,” and also ask state attorneys general for help.
Funk replied “Working on it!”
Another commenter suggested reaching out to the Lawyers for Good Government and its Fund Protection Clinic.
While Funk’s LinkedIn post has attracted significant attention, he said “We are trying to stay out of the limelight and help our farmers receive what they expected. Let’s hope this is resolved soon.”
He noted that his furloughed staff have been pulling children out of daycare and “tightening belts and budgets.”
On a reflective note, Funk said “Our work over the past two years has been extremely rewarding. ‘Nothing important happens in the office’ is our motto and we like getting our hands dirty to create the lasting change for which we strive. This happens by sitting down and enjoying a cup of coffee regardless of politics. Change is started by these small trust-building events.”
Overall, ZEN has been managing 67 REAP grants worth $3.7 million, to fund $10 million in projects that are projected to save a total of $20 million for farmers, communities and rural small businesses.
The funded projects include solar projects to help with irrigation costs.
The REAP program was launched by the Biden Administration as part of its Justice 40 Initiative, intended to ensure that 40% of the overall benefits of certain federal investments flowed to disadvantaged communities.
