Inspired by the investigative work of James Varney: Overnight Success: Biden’s Climate Splurge Gives Billions to Nonprofit Newbies , published by RealClear Investigations.
In our last segment we shared how the government can mismanage money with all these climate justice concerns. If you still support this cause then pay attention because we’re going to explain to the best of our ability what the government is doing with your money to support this America-saving movement.
The Environmental Protection Agency (EPA) used this Inflation Reduction Act to establish the Greenhouse Gas Reduction Fund. The purpose of the GGRF is, according to their website, to “mobilize financing”, “ensure economic competition”, and “promote energy independence.” Well that sounds nice. Vague, but nice. So what does that mean oh wise government website?
The GGRF is implemented through three programs: National Clean Investment fund, The Clean Communities Investment Accelerator, and Solar For All. These are all more organizations to “mobilize” money (somehow).
Now to firmly establish a flow of money throughout these government-preferred programs and businesses, they use something called “green banks.” A green bank creates financial incentives for investors to put their money into businesses that produce what the green banks want.
Here we go
This is a good time to take a short break and summarize with my favorite game: FOLLOW THAT MONEY TRAIL!
Biden created the 2022 Inflation Reduction Act. Then the EPA used the IRA to create the GGRF. The GGRF funds the NCIF, the CCIA, and SFA.
Ok so the money’s moved, but it’s only sitting in funds managed by investment firms. So once again, let’s FOLLOW THAT MONEY TRAIL!
The Greenhouse Gas Reduction Fund blesses a number of organizations with its financial graces. With $14 billion, the National Clean Investment Fund funds the Climate FUND United and the Coalition for Green Capital (which has enacted the Green Bank Act that finances projects that lower carbon emissions). Along with the CFU and the CGC the NCIF funds Power Forward Communities which in turn funds Enterprise Community Partners, Rewiring America, Habitat for Humanity International, and United Way Worldwide.
ECP invests in housing, racial equity, resilience and “upward mobility.” All with the fuzzy goal of reducing carbon emissions. Rewiring America is a non profit raising money for MORE PEOPLE in order to power buildings that will presumably do less climate damage than other buildings.Habitat for Humanity International is ANOTHER NON PROFIT RAISING MORE MONEY FOR MORE PEOPLE with the intention of “building better communities.” (Who doesn’t want better communities?)
FINALLY—United Way Worldwide is ANOTHER. MONEY HOARDING. NON PROFIT. They say they “bring communities together to find strength and share hope.” (ROI-wise, we wonder what sort of strength units they use to measure the strength they’ve found).
That’s all under the first organization funded by the Greenhouse Gas Reduction Fund.
Here we go again
Now coming in with $6 billion we have the Clean Communities Investment Accelerator—which funds five groups that provide funding to lenders. These are important, so bear with us …
Opportunity Finance Network provides capital and capacity building to lenders to the tune of $42 billion in assets. Inclusiv does the same thing for credit unions (so money doesn’t stop there), totaling $330 billion in assets.
The Justice Climate Fund provides clean energy capital to more lenders.
Appalachian Community Capital is establishing one of those green banks to fund more “climate friendly” projects (because we’re sure that’s what the American people want done with their money).
And then there’s the Native CDFI Network which just does the same thing as the rest.
But here comes up CDFI. That’s Community Development Financial Institutions … Fund. This is another way to move money via awards and distributing taxes. Most if not all the previously mentioned organizations use these CDFIs to get money where they want it—but it’s YOUR money, so is it going where YOU want it to??
The third group the CCIA awards is Solar For All, which in turns awards grants to SIXTY recipients.
Does the money actually do anything?
So by now the money MIGHT be doing something, but who among us can really determine what at this point? Oh, but it’s bettering communities by reducing carbon emissions—so our communities should be getting better by now … right?
Remember this all started from government funding. Government organizations to an act to a government agency to a government fund to banks to investors. That’s where we follow the money, your tax dollars.
Now here’s the really fun part: the government calls many of these funds “awards”—so that reassures you because it sounds like these organizations earned the money by first establishing a respectable reputation, having achieved success, so they are deemed worthy of government investment. Of course, the government (supposedly) represents citizens—so this is the citizens’investment.
Unfortunately, Real Clear Investigator James Varney exposed—with little surprise—that these awards don’t exactly match the track record of the recipients. Not even close. Here are a couple examples …
- Only EIGHT months after gaining nonprofit status, the Justice Climate fund was awarded $940 million by the Environmental Protection Agency.
- In 2023 Power Forward Communities achieved a morsel of $100 in revenue—yet a month after gaining nonprofit status they were awarded $2 BILLION.
Not to belabor the point, but through the Inflation Reduction Act (which according to President Biden is a climate bill), the EPA put $27 billion into the Greenhouse Gas Reduction Fund. The EPA describes the GGRC as “an unprecedented opportunity to accelerate the adoption of greenhouse gas reducing technologies.”
The usual suspects
How does this happen? Connections, connections, connections. Mr. Varney reveals that MANY of these organizations are run by people who are politically connected.
The Climate Fund United directors include prominent Democrats, such as Phil Angelides, a former California State Treasurer, and Anthony Foxx, who served as Transportation Secretary in the Obama administration.
The Coalition for Green Capital has Hugh Frater, who headed prominent mortgage financing company Fannie Mae at the end of the Obama administration. They also have Biden’s previous environmental justice official Cecilia Martinez, Jessie Buendia, who worked for the California government, and many others Mr. Varney highlights.
Power Forward Communities has Timothy Mayopoulos, who headed Obama’s Fannie Mae and Shaun Donovan, who served in the Obama administration.
We elect these people and later their teams establish nonprofits that accomplish diddly-squat—and in a matter of months become tax exempt.
Who’s asking for this stuff?
Once this money makes its way to tax exempted nonprofits it can’t just sit there; it has to get into private investments to be put to use, which they claim will be primarily in low-income areas. However, after some thought we become skeptical.
Mr. Varney begs the question, “are neighborhoods clamoring for what the nonprofits will sell, and how will the award winners attract $189 billion in private investment?”
These are big changes we’re talking about, requiring expensive technology that few, if any, low-income areas can afford. They’re LOW INCOME. How can these neighborhoods flourish if they have to pay for solar powered homes and electric cars?
Daren Bakst, director of the conservative Competitive Enterprise Institute’s Center for Energy and Environment says, “It’s insane. It doesn’t even matter if these were well established non-profits. How are you going to be sure the money is going to the right places?”
Just keep trusting
That’s the how, but what about a when?
EPA Special Advisor Zealan Hoover says that it’s entirely up to each organization.
What?! The government taxes you, gives it away to organizations to enact arguably undesirable changes they say will save the world, and then they tell you that you’ll get the ROI … whenever the recipients feel like.
Oh you got a headache? Here have some ibuprofen. You’ll get better … sometime eventually. Still interested in the ibuprofen? I’ll trade you for your gas car.
Alright this is ridiculous, but why wouldn’t you trust them? This is for the good of the planet. But what in the world even is a greenhouse gas? Should we be reducing it? Maybe so, maybe no.
But before we analyze that (which warrants a separate segment), is the government living up to their word? Few politicians have and given the layers upon layers of funds, organizations, and NEW FORMS OF BANKING promising economical vacuums, how confident can we really be in this progress? And if we can’t trust the progress, are we sure we can trust the motive?
Well, they say this is for the good of the planet. The good of the environment. So unite worldwide and power forward to rewire America with green capital so we clean our investments for climate justice. But if I have to sacrifice my gas car or my choice of energy to power my home or even ask THIS MANY QUESTIONS then maybe we need someone who has the well-being of the American in mind.