Neighbor News
Falmouth Owes Massachusetts SRF 3.5 Million On Wind Turbine
Officials Tell Town Meeting November 13 They Owe 3.5 Million Plus Interest On Wind Turbine Loan! Then Spend Another 2.5 Million?
Find out how towns like Falmouth misuse the State Revolving Fund Loan program. Massachusetts gets a failing grade for State Integrity Investigations.
The Falmouth wind turbines were shut down in 2017. The Town of Falmouth owes the SRF 3.5 million plus interest. That is why they call it the State Revolving Fund. If the money isn't used for an energy-efficient project it goes back to the state for a more worthwhile project.
This money must be returned to finance other worthwhile renewable energy projects or its fraud in the Massachusetts State Revolving Fund. Why have a revolving fund at all ?
Find out what's happening in Falmouthfor free with the latest updates from Patch.
Town official has long warned ending at Town Meeting November 13, 2019, that if Wind 2, one of its twin wind turbines, is shut down the town would be forced to repay a $5 million clean-energy loan plus interest.
The town got a $4,865,000.00 loan from the Massachusetts Water Pollution Abatement Trust today known as the Massachusetts Clean Water Trust, to construct the turbine, which was installed and commissioned in 2012 at the town’s wastewater treatment facility on Blacksmith Shop Road next to 200 residential homes. The MCWT, Mass Clean Water Trust used funds from the 2009 American Recovery and Reinvestment Act to finance the loan, which was interest-free and meant to be forgiven as long as the turbine continuously runs as a source of renewable energy.
Find out what's happening in Falmouthfor free with the latest updates from Patch.
The courts shut down the nuisance wind turbines in June of 2017, the loan forgiveness legally according to EPA federal regulations is blown away. How much extra it would cost the town, however, is still unclear and officials don't care because Town Meeting approved millions in litigation fees since 2010.
The Select Board is aware they owe 3.5 million on the $5 million ARRA loan, plus interest
The town was notified by the Massachusetts Department of Environmental Protection in 2013 that repayment of the loan according to EPA regulations if the turbine didn’t operate enough to qualify as an “energy efficiency” project payment is due. MassDEP brokered the loan between the town and Mass Clean Water Trust.
The Falmouth Town Manager, in an affidavit about wind turbine financial matters, estimated the interest rate at around 2 percent. It could be more.
The turbines broke the project regulatory agreement in 2013 running at reduced capacity — 12 hours a day, six days a week except for certain holidays and Sundays under the terms of a 2013 court order. The courts ordered the turbines to completely shut down in June 2017 where they sit rusting away.
The MCWT hasn’t specifically outlined how often the turbine must run for the town to receive the loan forgiveness, but now the turbines have been shut down for two years showing the operation is insufficient. Other worthwhile energy efficient projects around the state are being cheated out of funds from the State Revolving Funds because of inaction by state officials misuse of funds ignoring legal agreements.
Town Meeting voted 2.5 million to take down both wind turbines probably next year and possibly a few years from then with permitting one may operate in another town. The chances of moving an old gear-driven wind turbine to a new location are slim. Today you could install a brand new state of the art larger wind turbine at the same new location for less money.
The Massachusetts Department of Environmental Protection and Massachusetts Clean Water Trust are well aware the production is not satisfactory. Under the ARRA American Recovery and Reinvestment Act of 2009 loan agreement, the loan is long overdue plus interest.
The town announced the development related to the loan in a statement sent out in November of 2013. The town Finance Director got word from the Mass Clean Water Trust about the potential interest charges while preparing to refinance other town debts. Both the Finance Director and Assistant Town Manager at that time refused to comment to the local media.
According to the, the PRA, project regulatory agreement brokered between the town and Mass Clean Water Trust there is an absolute mandate the Wind 2 loan has to be repaid-with interest.
In a rare Falmouth Special Town Meeting in June 29 of 2009 members approved three articles to borrow ARRA funds with the condition Falmouth Wind 2 had to remain an energy-efficient project.
The twin turbines generating 110 decibels of noise each have been a source of controversy since they were installed. Up to 65 neighbors have complained in writing about health effects from their operation and had filed up to eleven lawsuits to shut them down, while the town has warned of dire financial consequences by MassDEP who brokered the loan should either turbine be deactivated.
MassDEP is stuck in regulatory capture unable to enforce state noise regulations because they brokered the ARRA loan on Falmouth Wind 2.
The town failed to apply for a special permit 240-166 for Wind 1 or 2, as stated in the EPA waiver to buy the two foreign-made wind turbines.
The 3.5 million balance is due plus interest.
