The Environmental Protection Agency froze almost $100 million in funds that were allocated to the Connecticut Green Bank. Now, the Green Bank is trying to get the money back.
“It’s outrageous that we have to do this,” said Green Bank Board of Directors member John Harrity. “It’s just astounding that the work that the Green Bank does, which is so vital to the future of the state and the country and the world, should be impeded in this way.”
The Coalition for Green Capital (CGC), which heads the Green Bank movement, worked with the Connecticut Green Bank to secure $93.5 million via the Greenhouse Gas Reduction Fund for projects in Connecticut, New Hampshire and Puerto Rico, according to Bryan Garcia, the president and chief executive officer of the Connecticut Green Bank.
At the start of the year, the CGC transferred money to a Citibank account for the Connecticut Green Bank to implement its work plan.
Around the same time, President Donald Trump signed an executive order instructing federal agencies to stop distributing grants that were awarded through the Infrastructure Investment and Jobs Act of 2021, and the Inflation Reduction Act of 2022, the latter of which established the Greenhouse Gas Reduction Fund.
On March 11, the Environmental Protection Agency (EPA) terminated the grants given through the National Clean Investment Fund (NCIF) and the Clean Communities Investment Accelerator.
“This termination is based on substantial concerns regarding the Greenhouse Gas Reduction Fund (GGRF) program integrity, at the award process, programmatic fraud, waste, and abuse, and misaligned with agency’s priorities, which collectively undermine the fundamental goals and statutory objectives of the award,” the EPA stated in a press release.
Around the same time, the CGC received a letter informing them that the grants it received through the NCIF would be terminated.
“These were unlawful terminations, which resulted in… the Coalition for Green Capital filing a lawsuit against the EPA and Citibank, essentially seeking a temporary restraining order saying that the funds that were deposited at Citibank for the support of the work plans were not to be returned to treasury, but were to stay there, in those accounts, for the awardees to continue to implement the work plan,” Garcia said.
Two weeks ago, a district judge granted the CGC’s preliminary injunction request. This would have allowed the Green Bank to have access to the Citibank funds, but the EPA immediately appealed the decision. The money remains frozen in the Citibank account.
A small amount of that money was spent on administrative costs before the funding freeze, according to Garcia.
“That’s where we are,” Garcia said. “The funds are frozen and the case is now moved from the district court to now the Court of Appeals. So, this is all part of the legal process and we’re supporting CGC as the awardee as they work through this process.”
In the meantime, the Green Bank employees are trying to continue their mission.
Of the $93.5 million the Connecticut Green Bank was in charge of managing, $43 million was for the state of Connecticut. Fifteen million dollars would be used for projects in New Hampshire and $38.5 million in Puerto Rico.
They are working with the Puerto Rico Green Energy Trust to set up the legal framework for future projects, even though no money has been transferred, according to Garcia.
At its April 25 meeting, the Connecticut Green Bank’s Board of Directors unanimously voted in favor of a resolution that would reallocate $5 million from its Clean Energy Fund so it can start up the EnergizeCT Smart-E Loans program that was supposed to be funded by money from the NCIF. That program provides deposit money to Smart-E lenders, who give loans for projects in Low Income Disadvantaged Communities (LIDACs).
The Smart-E Loans program was supposed to have $10 million at this time.
In addition to the Smart-E Loans program, NFIC money was supposed to support a program to help school districts buy electric school buses.
“I think it was key though that the EPA was not able to bring that money back into its own accounts. the rulings have been going in our thus far, so it’s a really good thing that we’ve got such a strong case,” said Lonnie Reed, the chairwoman of the Board of Directors. “It feels like we’re really on the right path and that we’ve been really making a very good case for ourselves.”
The Green Bank still reaches out to CitiBank every other week, according to Garcia.
“At the end of the day, nobody has a crystal ball. It’s with the DC court of appeals,” Brian Farnen, the Green Bank’s general counsel and chief legal officer, said. “We have calls on a weekly basis as sub-awardees and awardees, and hopefully we’ll learn more.”
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Good. I’m glad Trump froze this. I don’t want ANY tax dollars going for green anything. This should all be privately funded. Electric busses? Have you people pushing this seen the videos on how these minerals are mined, the child slave labor used for the cobalt, the fact these vary kids get cancer from mining, the fact the run off from the strip mines kills the fish in the rivers, and the dust from the strip mines kills the crops? My question for the idiots in these articles who are the movers and shakers, who push for green energy , how much money are you taxpayer money are you making exactly from the contracts, The NGO’s, the consulting, what’s flowing like dirty running off water into your bank accounts that’s all but untraceable and you’re having a conniption because the grift is up?
Totally agree. Even the initial ‘small amount’ of money the Green Bank used was for ‘administrative purposes’. It’s a grift. Every NGO, most if which are ‘liberal’, grants to universities – all these organizations use up spending for ‘administrative’ purposes- it’s a grift, it a liberal/ left / Democrat party employment project. Very little to nothing has been achieved via Biden’s ironically named, ‘Inflation Reduction Act’. It’s stealing of public funds.