Falmouth Beacon Hill 5M Loan Favor Via MCWT

The Massachusetts State Revolving Fund (SRF) in 2009 offered American Recovery and Reinvestment Act (ARRA) affordable loan options to cities and towns to improve water supply infrastructure and drinking water safety, and to help them to comply with federal EPA and state water quality requirements that deal with wastewater treatment plants.

Five million in ARRA funding was given to the Town of Falmouth Wind Turbine II under the requirements for the planning and construction of projects including upgrades of existing wastewater facilities through the Massachusetts Clean Water Trust via a 2 percent loan.

Massachusetts outside legal counsel has advised that the Town of Falmouth Wind II turbine is subject to specific provisions of ARRA and applicable federal regulations and guidelines ("Federal Law') in addition to the terms and conditions of the Project Regulatory Agreement ("PRA") and the Loan Agreement brokered by the Massachusetts Department of Environmental Protection associated with the funding of Wind II, Under Federal Law and the PRA and Loan Agreement

Falmouth must maintain Wind II as an "energy efficiency" project, as described in EPA guidelines or pay back the loan plus 2 percent interest.

In Massachusetts, the largest ARRA programs were used to eliminate or mitigate a risk to public health such as the wind turbine at the Falmouth Wastewater Treatment Plant Massachusetts' Department of Environmental Protection with the approval of the U.S. Environmental Protection Agency allocated all $185 million of the ARRA Clean Water and Drinking Water State Revolving Fund (SRF) money to 120 projects across the state.

In a June 2009 Falmouth Special Town Meeting, the town voted to accept 5 million in ARRA funds by the February 2010 deadline. The agreement was the Falmouth Wind II turbine the second town-owned wind turbine has to remain energy efficient or pay back the loan at 2 percent where it would be sent back out to other Green energy projects around the state.

The 5 million ARRA loans did not eliminate or mitigate any risk to public health. The turbines generate 110 decibels and the town never filed permits to construct the turbines as outlined in the ARRA EPA waiver to buy a foreign wind turbine.

In June of 2017, the Massachusetts courts over seven years determined the two town-owned wind turbines Falmouth Wind I and Falmouth Wind II installed in 2010 and 2012 are a nuisance and are shut down forever.

The remainder of the 5 million dollar Falmouth ARRA wind turbine loan 3.5 million should be paid back to the State Revolving Fund as the turbine did not eliminate or mitigate any risk to public health but instead caused a risk to public health.

The Massachusetts Clean Water Trust Board of Trustees in June of 2017 took a vote on the ARRA loan but failed to require the Town Falmouth to immediately pay back the remainder of the loan on the nuisance wind turbines.

The town is using a balance of the 5 million ARRA loan which is 3.5 million to run day to day business in town when the money should go back to the Mass State Revolving Fund for other Green energy projects if the state really cared about the Carbon Footprint rather than the Beacon Hill old boy network.

The meeting with the Mass Clean Water Trust has no actual decision in June of 2017: Over three years later the turbines have no future as there is no Federal or Massachusetts legislation to allow moving the turbines with a 5 million dollar ARRA loan outstanding on Falmouth Wind II the second town-owned wind turbine.

The loan requires full repayment (3.5 Million) to the State Revolving Fund as the turbines are a threat to public health and a public nuisance.

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MEETING OF THE MASSACHUSETTS CLEAN WATER TRUST BOARD OF TRUSTEES

June 21, 2017 1:30 PM
State House Room 227
Boston, Massachusetts
MINUTES

Attendees: Treasurer Deborah Goldberg Commissioner Martin Suuberg, Department of Environmental Protection Rachel Madden, Designee of the Secretary of Administration and Finance

Ms. Perez reported to the Board on the situation in Falmouth.

The Barnstable Superior Court handed down a decision that stopped the operation of both Wind I and Wind II. The Trust notified the Town in April of 2013 that if the Trust financed Wind II turbine ceased operating as an energy-efficient project the Town would no be given principal forgiveness on the $4,865,000 original principal amount of its loan.

The Board discussed options for assisting the Town following this court decision:

(1) begin paying back the loan at 2% pursuant to the original Schedule C;

(2) begin paying back the loan at 2%, but with a credit for the years that Wind II did operate as an energy-efficient project;

(3) make the loan a zero-percent loan, also with a credit for the seven years that Wind II did operate and re-amortized the loan to reduce debt service per payment period; and (4) forgive the loan.

The Board agreed that the loan cannot be forgiven.

Ms. Perez will communicate to the Town the Board’s willingness to offer assistance.

https://www.mass.gov/files/documents/2017/10/12/06212017-board-meeting-minutes.pdf

Left : Massachusetts Clean Water Trust Commissioner Susan Perez

Right ; Massachusetts State Treasurer Deborah Goldberg