Massachusetts Changed Federal ARRA Wind Turbine Loan Regulation

Mass Clean Water Trust Changes Federal ARRA Loan Regulations 10 Years After Loan

Mass Global Warming Solutions Act Goals Ignored 3.5 M Plus 2 % Interest Wind Turbine Loan

Falmouth Owes 3.5 M Plus 2% On Wind Turbine II - Massachusetts Global Warming Solutions Act Goals Slowed By Decision

This all started in Falmouth, Massachusetts when the US Environmental Protection Agency and Massachusetts Department of Environmental Protection through an application process by April 19, 2010, had granted a waiver of the "Buy America" requirements of the American Recovery and Reinvestment Act to the Town of Falmouth, Massachusetts for the purchase of the second town-owned foreign-manufactured Vestas V-82 wind turbine to be installed at its existing wastewater treatment facility site in 2012.

The US EPA waiver has major flaws.

The Town of Falmouth according to an August 2, 2010 letter had been warned prior to the construction of the first wind turbine in 2010 called Wind I. The turbine breaks state noise regulations. The warning was by email prior to the construction of Falmouth Wind II and a 2005 KEMA Inc wind study.

The US Environmental Protection Agency and Massachusetts Department of Environmental Protection through an application process by April 19, 2010, had ignored all safety and health precautions. General Electric according to the 2005 KEMA Inc study refused to place a single wind turbine over safety and health, the town never filed special permits 240-166 as stated in the US EPA waiver, and no study of both turbines operating at the same time.

Falmouth received $4.865 million from the Massachusetts Water Pollution Abatement Trust, now known as the Massachusetts Clean Water Trust, for Wind II. Those dollars went to Falmouth as part of the American Recovery and Reinvestment Act of 2009 with the principal and interest forgiven as long as the project continued to be "energy efficient."

As of April 2013, Outside legal counsel has advised the Massachusetts Department of Environmental Protection 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.

Federal regulations at 40 CFR 31.30(1)(3) states that a grantee, such as the Trust, "will not approve any budget or project revision which is inconsistent with the purpose or terms and conditions of the Federal grant to the grantee."

In the event that the project ceases to function as an energy-efficient project, the Trust will amend Schedule C to reinstate the Town's obligation to pay principal and interest on the loan. The remainder of the 5 million-plus 2 percent interest.

The money in all actuality must be returned to the Massachusetts State Revolving Fund for other Green projects as the funds were designated by ARRA stimulus regulations for Green energy and wastewater plants. The Falmouth turbine is no longer energy efficient.

In June of 2017, the Massachusetts Clean Water Trust Board of Trustees met after the Massachusetts courts shut down the nuisance wind turbines. The Board agreed that the loan cannot be forgiven.

The Trust had notified the Town of Falmouth in April of 2013 that if the Trust financed Wind II turbine ceased operating as an energy-efficient project the Town would not be given principal forgiveness on the $4,865,000 original principal amount of its loan and would owe 2 percent interest.

The Massachusetts Clean Water Trust in August of 2017 notified the Town of the Board’s decision to convert the loan that financed the Wind 2 turbine into a zero-percent loan and give the town credit for principal during the time that Wind 2 was operating as an energy-efficient project, with the remaining balance paid through 2029. What happened to the interest?

The Massachusetts Clean Water Trust disregarded the Massachusetts Department of Environmental Protection project regulatory agreement, PRA, brokered by the MassDEP between the Massachusetts Clean Water Trust and Town of Falmouth which requires repayment of the remainder of the $4,865,000 million loans at 2 percent.

Remember that the Massachusetts Department of Environmental Protection and US Environmental Protection worked together to provide a federal waiver to bypass the "Buy American" section of the ARRA requirements to purchase Falmouth Wind II. That original waiver has major flaws and omissions.

The Town of Falmouth omitted major warnings they had in hand from the federal waiver. An email and letter and associated specifications the turbine generate 110 decibels of noise twice as loud as a General Electric domestic wind turbine. General Electric had refused because of residential setbacks and ice throws both health and safety concerns. The federal EPA waiver said the town required Special Permit 240-166 which the town never filed and on top of that there was no wind study of both turbines operating at the same time.

The Massachusetts Global Warming Solutions Act (GWSA) of 2008 created a framework for reducing heat-trapping emissions to levels that scientists believe give us a reasonable chance of avoiding the worst effects of global warming. It requires a 25% reduction in greenhouse gas (GHG) emissions from all sectors of the economy below the 1990 baseline emission level in 2020.

The Town of Falmouth owes 3.5 million at 2 percent interest back to the Massachusetts State Revolving Fund where the ARRA funds can be revolved back to other Green Energy Projects and meet the goals of the Global Warming Solutions Act (GWSA).