TL/DR –
The Trump administration has halted a federal program that earmarked $20 billion for financing climate and clean energy projects, impacting people like Liomarie Oyola Pérez, who runs a residential mental health clinic in Puerto Rico and wants to supplement her facility’s solar panels with batteries to manage the region’s frequent power blackouts. The decision has been challenged in court by several nonprofit groups that were promised funds. The program could have financed enough new solar arrays to power up to 2.2 million American homes by 2031, according to a recent analysis from Energy Innovation and the University of New Hampshire.
Frozen Funds Impeding Climate Resilience Projects in Puerto Rico
Liomarie Oyola Pérez, who runs a residential mental health clinic in Puerto Rico, is fighting to secure funding for her energy storage solution. The facility, already equipped with solar panels, needs batteries to store energy during frequent blackouts. However, her efforts are hindered by funds freeze from a federal program that provides low-interest loans for climate and clean energy projects.
This year, Perez’s lender was set to receive millions from this program, but at the request of the Trump administration, $20 billion committed to finance such projects was abruptly halted. Several nonprofit groups, promised funds, filed a lawsuit with a court hearing scheduled soon.
The frozen funds also impacted projects across the United States aiming to reduce energy costs and pollution. The halt in funding could potentially disrupt financing for new solar arrays that could power up to 2.2 million homes by 2031, according to Energy Innovation, a research organization, and the University of New Hampshire.
Controversy Surrounding the Funds
Lee Zeldin, the Environmental Protection Agency’s (EPA) administrator, has criticized the program, labeling it a “green slush fund” susceptible to waste, fraud, and abuse. However, the agency’s claims have been challenged, with a judge requesting evidence to support these allegations.
In Puerto Rico, 38 credit unions await $147 million from the Greenhouse Gas Reduction Fund. They project that this funding could support 88,000 solar, electric-vehicle, and energy efficiency projects by 2030. Despite Zeldin’s claims, these loans undergo extensive vetting and are often crucial in keeping the lights on for many recipients.
Solar Lenders Left Hanging
Credicentro-Coop, a significant cooperative solar lender in Puerto Rico, was expecting $5.5 million in federal funds to expand its efforts before the freeze. Miguel Ortiz Santos, the executive president of the cooperative, advocated for the benefits of transitioning to clean energy.
Despite the frozen funds, Credicentro-Coop continues to perform due diligence on its green energy loans, resulting in a default rate of about half of 1 percent, less than the national average.
Unsubstantiated Claims and Consequences
Zeldin drew attention to the $20 billion in climate funds shortly after taking office, suggesting misuse of funds. However, investigations by the Department of Justice, the FBI, and the EPA’s acting inspector general found no evidence of waste or fraud. Meanwhile, the funding freeze leaves many cooperatives, like Credicentro-Coop, in limbo, despite their years of experience financing solar systems for homeowners and small businesses.
“The lower the payment, the more people qualify,” said Ortiz Santos, emphasizing the impact of low-interest loans for solar power on the community.
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