Environmental Protection Agency administrator Scott Pruitt worked directly with a top energy lobbyist, and without a real estate broker, to set up a $50-a-night rental room in a prime Capitol Hill building co-owned by the lobbyist’s wife during his first six months in Washington, a source familiar with the arrangement told ABC News.
Pruitt was permitted to pay rent for just a single bedroom in the upstairs condo unit, even though the other bedrooms in the unit were unoccupied, the source told ABC News.
In all, Pruitt paid $6,100 to the limited liability corporation for the Capitol Hill condo co-owned by Vicki Hart, whose husband J. Steven Hart is chairman of a top D.C. lobbying firm and who is registered to lobby for several major environmental and energy concerns, according to Bloomberg News which first reported the payment arrangement.
The EPA allowed Bloomberg News to review copies of canceled checks that Pruitt paid to the condo owner for using the room for roughly six months. The news outlet reported that the checks show varying amounts paid on sporadic dates — not a traditional monthly “rent payment” of the same amount each month.
EPA spokesman Jahan Wilcox did not respond to calls or emails from ABC News.
“I think it certainly creates a perception problem, especially if Mr. Hart was seeking to influence the agency,” said Bryson Morgan, who served as Investigative Counsel at the U.S. House of Representatives Office of Congressional Ethics.
Rules against improper gifts do not only apply to items given free of charge, Morgan said. There are other considerations when reviewing the arrangement, including the terms of the agreement.
“It’s not just if he is paying market rent,” Morgan said. “A short-term lease is expensive. Is he given the ability to end it any day? Is this an arrangement any other person could get on the open market? My assumption would be this situation does not involve the hallmarks of a specific fair market transaction,” he said in an interview conducted before the checks were revealed.
The new disclosure comes as Democrats in Congress are demanding that Pruitt disclose to them more details about his 2017 use of the Capitol Hill home.
U.S. Rep. Don Beyer, a Virginia Democrat called on Pruitt to “immediately make clear the terms of his housing agreement” and “publish all correspondence” with the veteran lobbyist whose wife co-owns townhouse.
Hart is the chairman of lobbying firm Williams and Jensen that lobbies on EPA policies like the Clean Air Act, according to its website. The firm also lobbied on issues related to the export of liquefied natural gas and represented Cheniere Energy Inc., which owned the only active Liquid Natural Gas export plant in the United States at the time.
Pruitt traveled to Morocco last December and the EPA said in a press release that liquid natural gas exports a topic of discussion during that trip.
Last year, Cheniere Energy Inc. reported paying Hart’s firm $80,000.
Hart’s firm specifically lobbied on “issues related to the export of liquefied natural gas (LNG), approval of LNG exports and export facilities.” The firm also lists on its website that it lobbies on other EPA policies like the Clean Air Act.
The EPA did not respond to ABC News’ questions about whether Hart’s lobbying firm had any involvement in arranging meetings during Pruitt’s trip to Morocco.
Cheniere Energy spokeswoman Rachel Carmichel told ABC News the company ended its relationship with Hart’s firm in December 2017. The spokeswoman went on to say Cheniere was unaware of the relationship between Pruitt and the lobbyist and had not used Hart’s firm to have conversations with the EPA.
Another lobbying client of Hart’s, the railroad Norfolk Southern, spent $160,000 last year on lobbying Congress on “issues affecting coal usage, oil production, and transportation, including EPA regulation.”
Norfolk Southern also declined to comment when reached by ABC News.
The head of the nonprofit watchdog group the Environmental Integrity Project and former EPA Director of Civil Enforcement Eric Shaffer called on the EPA’s inspector general and Congress to look into the issue.
“Does this explain why Pruitt flew to Morocco to pitch natural gas exports, which isn’t really an EPA concern?” Schaeffer wrote in a statement.
The EPA inspector general’s office is aware of the report, according to spokesman Jeff Lagda.
The agency’s inspector general is already looking into the cost of Pruitt’s travel and whether the agency followed all proper procedures.
Investigators probing whether Donald Trump’s presidential campaign colluded with Russia have been questioning witnesses about events at the 2016 Republican National Convention, according to two sources familiar with Special Counsel Robert Mueller’s inquiries.
Mueller’s team has been asking about a convention-related event attended by both Russia’s U.S. ambassador and Jeff Sessions, the first U.S. senator to support Trump and now his attorney general, said one source, who requested anonymity due to the ongoing investigation.
Another issue Mueller’s team has been asking about is how and why Republican Party platform language hostile to Russia was deleted from a section of the document related to Ukraine, said another source who also requested anonymity.
Mueller’s interest in what happened at the Republican convention in Cleveland, Ohio in July 2016, is an indication that Trump campaign contacts and actions related to Russia remain central to the special counsel’s investigation.
Trump, who was nominated as the Republican Party candidate for the November 2016 election during the convention, has denied any collusion with Russia during the campaign. Moscow has denied U.S. intelligence agencies’ findings that it interfered in the campaign to try to tilt the election in Trump’s favor.
Investigators have asked detailed questions about conversations that Sessions, then a Trump campaign adviser, had at a convention event attended by then-Russian Ambassador to the United States Sergei Kislyak, said the first source, who was questioned by Mueller about the event.
The same source said Mueller’s team also has been asking whether Sessions had private discussions with Kislyak on the sidelines of a campaign speech Trump gave at Washington’s Mayflower Hotel in April 2016.
Sessions’ spokespersons have denied repeatedly that he had any private discussions with Kislyak at the Mayflower. Sessions told lawmakers last year he could not recall any conversations with Russian officials at the hotel but could not rule out that a “brief interaction” with Kislyak may have occurred there.
Spokespersons for Mueller and Sessions declined to comment on Mueller’s interest in Sessions’ activities at the convention and other convention-related events.
The special counsel’s investigators have also interviewed attendees of the committee meetings that drafted the Republican Party platform in Cleveland.
At one committee meeting, according to people in attendance, Diana Denman, a member of the platform committee’s national security subcommittee, proposed language calling for the United States to supply “lethal defensive weapons to Ukraine’s armed forces and greater coordination with NATO on defense planning.”
But the final platform language deleted the reference to “lethal defensive weapons,” a change that made the platform less hostile to Russia, whose troops had invaded the Crimean peninsula and eastern Ukraine.
After the convention, Denman told Reuters in 2016, J.D. Gordon, a Trump foreign policy adviser, told her he was going to speak to Trump about the language on Ukraine, and that Trump’s campaign team played a direct role in softening the platform language.
The Trump campaign has denied playing any role in the weakening of the party’s position regarding Ukraine. Gordon has called Denman’s version of events “inaccurate.”
Stephen Yates, co-chair of the platform committee’s national security subcommittee, said he has “heard nothing about other members of the subcommittee being called in for questioning, and I have had no interaction with anyone working on the investigation.”
Sessions recused himself last year from the federal probe into Russian election meddling after it emerged that he had failed to say during his Senate confirmation hearing to be attorney general that he had met with Russia’s ambassador in 2016.