Exclusive: Senators defend green energy grant for Modesto’s Gallo Glass
A canceled Department of Energy grant awarded to Gallo Glass was highlighted in a letter signed by California senators questioning the logic and legality of federal funding clawbacks.
U.S. Sen. Adam Schiff spearheaded the letter sent Tuesday morning to the secretary of the Department of Energy condemning the termination of $3.7 billion in federal funding for green energy projects across the U.S., $845 million of which would be for contracts in California.
Gallo Glass’ canceled a $75 million grant was one of three projects in California that the letter honed in on. The grant funded new technology that would replace their natural gas furnace with a hydroelectric melter, which was projected to reduce their natural gas consumption.
A copy of the letter provided to The Bee reads: “This project would have reduced natural gas use by 70 percent and would have used union labor to produce glass for California’s wine industry.”
Gallo Glass was established in Modesto in 1958 by E.&J. Gallo Winery to keep up with demand for glass bottles and is the largest glass container plant in the United States.
The award was canceled at the request of DOE Secretary Chris Wright, whom Schiff and colleagues directed the letter to early Tuesday morning. The letter questions the legality of clawing back funds already accounted for.
The letter reads in part, “These grants were provided through legally binding contract agreements between recipients and the federal government and, therefore, cannot be canceled on a political whim.”
Chris Wright, who was appointed by President Donald Trump and confirmed by the Senate in February, previously worked in shale-gas production. Since being in office, he has routinely moved toward projects that increase gas production in the United States.
On May 30, he announced the cancellation of the 24 grants.
In a press statement, he said: “While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” said Secretary Wright. “Today, we are acting in the best interest of the American people by canceling these 24 awards.”
The letter sent by senators Tuesday challenges this statement, stating no information has been provided to Congress that details any waste.
Sen. Alex Padilla also signed the letter, which cited two other California grant cancellations focused on carbon capture – one in Los Angeles for $500 million awarded to the National Cement Company of California Inc. and the other a $270 million project at a natural gas plant in Sutter County.
The letter also mentions rumors that the Department of Energy has plans to close the Office of Clean Energy Demonstrations, which it states led to “70 percent of staff in that office departing the agency.”
The agency’s mission is “to deliver clean energy demonstration projects at scale in partnership with the private sector to accelerate deployment, market adoption, and the equitable transition to a decarbonized energy system.”
It was created by Congress in 2021 as part of an Act known as the “Bipartisan Infrastructure Law.”
“DOE’s attacks on cutting-edge clean energy projects run counter to our shared interest in boosting energy production, innovation, and economic vitality,” it reads. “We ask that you reinstate the $3.7 billion in canceled [Office of Clean Energy Demonstrations] funding so that we may bolster American energy production and maintain our competitive edge.”
This story was originally published June 17, 2025 at 12:00 PM.
