Falmouth SB Wind Turbine Admission Raises ARRA Loan Questions

Falmouth Select Board Member Sam Patterson: "acknowledged that town officials made mistakes, particularly in failing to comply with zoning requirements."

Five Falmouth Select Board Members voted 4-0 Monday, January 14, 2019, not to operate either Wind 1 or Wind 2 again in Falmouth, Selectman Sam Patterson abstained from the vote.

That did not stop Falmouth Selectman Sam Patterson from recently making statements to the Boston Globe.

Falmouth Select Board Member Sam Patterson was quoted in a Boston Globe news article on January 24, 2019, titled:
"‘Green energy blues’ in a town that sought to do something about climate change"

Patterson in the Globe wind turbine news article "acknowledged that town officials made mistakes, particularly in failing to comply with zoning requirements."

The statement of admitting mistakes and failing to comply with zoning requirements brings to light the 5 million in federal ARRA funds borrowed by the town to build Falmouth Wind II.

The town received $5 million in State Reserve Fund loans for the Wind turbine II project. The money was allocated by the federal government through the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA federal funds can not be used if they create a substantial and specific danger to public health or safety related to the implementation or use of ARRA recovery funds.

The Massachusetts courts shut down both Falmouth town-owned wind turbines as they are a nuisance.

The Massachusetts Department of Environmental Protection brokered a loan agreement between the Town of Falmouth and the Massachusetts Clean Water Trust using the ARRA federal funds.

In order to receive the 5 million in federal funds for Falmouth Wind II the town filed an EPA waiver to buy the foreign made Vestas V-82 type 1.65 megawatt turbine.

The town left out major facts (mistakes), General Electric a domestic wind company refused to build a single turbine for safety setbacks to residential homes. In addition, the waiver said the town would file Special Permit 240-166 (zoning) which it did not.

In addition, the town continues to hide an August 2010 letter as well as emails from Vestas wind company that the turbine generates 110 decibels of noise and prior to the ARRA loan for Falmouth Wind II the town had a study done by KEMA Inc in 2005 with a map showing a single GE wind turbine would break state noise regulations.

The town borrowed 5 million dollars and misled federal officials to obtain the American Recovery and Reinvestment Act funds that were supposed to be used to buy American and put Americans to work.

The town may have to pay back the entire ARRA funds which are absolutely a financial blow to the town in which case services will be affected.

Note # The Falmouth Select Board at the January 14, 2019 meeting discussed reusing the 5 million Falmouth Wind II ARRA loan/grant fund and the possibility the loan could be forgiven. Apparently, town officials have forgotten about the April 2, 2013 letter from Susan Perez the Executive Director of the Massachusetts Clean Water Trust and former Commissioner of the Massachusetts Department of Environmental Protection Ken Kimmell.

Quote from the April 2, 2013 letter : FALMOUTH WIND II LOAN/GRANT

"Outside legal counsel has advised that Wind II 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 associated with the funding of Wind II, Under Federal Law and the PRA and Loan Agreement, the Town must maintain Wind II as an "energy efficiency" project, as described in EPA guidelines dated March 2, 2009, in order to benefit from the financial subsidy provided by the Trust under ARRA and the Trust's Clean Water State Revolving Fund program."

"Under federal regulations governing the Trust's ARRA grant at 40 CRF Part 31.30(d) (1), if the Town chooses to change the scope or objectives for Wind II in any significant manner, the Town will have to request the Trust's prior written approval."

"If the change is such that Wind II continues to be used in a manner that is consistent with an "energy efficiency" project, the Trust will be able to approve such a change. But if the change would result in Wind II being used in a manner that is not consistent with an "energy efficiency" project (for example either ceasing operations or curtailing them to the extent that Wind II operates for only a very limited period of time each day), the Trust will not be able to approve the request and the Town will not be allowed to utilize the ARRA funds with principal forgiveness."

Falmouth Town Meeting is April 8, 2019