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Banks (Finance)

Trump's EPA Chief Launches Attack on Biden's Green Energy Loan Program

Strategic Insights

— 2 min read

Lee Zeldin, the head of the Environmental Protection Agency, has launched a scathing attack on the Biden administration's $20 billion clean energy loan program, labeling it a "left-wing slush fund" that has "parked" the funds at a private bank. However, Zeldin's claims are not new, and the program has bipartisan roots, dating back to 2007, when it was first proposed in a bipartisan climate bill. The $20 billion in question is part of the Greenhouse Gas Reduction Fund, also known as the "green bank" initiative, which was designed to distribute billions of dollars to nonprofit lenders who would provide low-interest loans to tribes, companies, and local governments for clean energy projects.

Key Takeaways:

  • The $20 billion in question is part of the Greenhouse Gas Reduction Fund, also known as the "green bank" initiative.
  • The program was designed to distribute billions of dollars to nonprofit lenders who would provide low-interest loans to tribes, companies, and local governments for clean energy projects.
  • The green bank program was modeled off successful funds in states like Rhode Island and Michigan, which respectively financed infrastructure repairs and homeowner energy upgrades.
  • The green bank proposal has bipartisan roots, dating back to 2007, when it was first proposed in a bipartisan climate bill.
  • The program was meant to be technology-neutral, allowing money to go to support forms of clean energy like nuclear and hydrogen.
  • The program has been criticized by Republicans, who have labeled it a "left-wing slush fund".
  • The EPA is now trying to seize the funds from Citibank, which received the funds months ago.
  • Grantees have so far drawn down very little of the funds, and only a few projects have gotten off the ground.
  • Climate United, a coalition of financial nonprofits, has issued a $32 million loan for the biggest industrial solar development in Arkansas history.
  • If Citi returns the money to the EPA, funding recipients could sue the administration for breaching its contract and withholding obligated funds.

Statistics:

  • $20 billion: The amount of funds at stake in the green bank program.
  • 2: The number of centrist Republicans, Brian Fitzpatrick of Pennsylvania and Don Young of Alaska, who endorsed a national green bank bill in 2021.
  • 2011: The year Connecticut passed green bank legislation with unanimous support from both parties.
  • 2017: The year Nevada opened a clean energy fund under a Republican governor.
  • 2007: The year the green bank proposal first appeared in a bipartisan climate bill.
  • $32 million: The amount of a loan issued by Climate United for the biggest industrial solar development in Arkansas history.
  • 25 years: The timeframe over which the solar system at the University of Arkansas is expected to save the school around $120 million in energy costs.

Sources:

  • Grist
  • Project Veritas
  • Institute for Nonprofit News (INN)
  • Laura Haynes Gillam, former senior policy adviser at the Senate's Energy and Public Works committee
  • Brent Efron, former EPA staffer
  • Ed Markey, congressman from Massachusetts
  • Arlen Specter, former Republican senator from Pennsylvania

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