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NAFCU requests clarification on GHGR Fund implementation
NAFCU Vice President of Regulatory Affairs Ann Petros wrote to the Environmental Protection Agency (EPA) to request clarification on potential design issues with the implementation of the Greenhouse Gas Reduction (GHGR) Fund.
In the letter, Petros noted that the proposed EPA framework stated the investment fund is only limited to direct investments. That limitation prevents recipients from providing any grant funding to credit unions and places an unrealistic burden on the “few eligible recipients to deploy billions of dollars directly without the assistance of the established network of thousands of existing non-profit financial institutions.” Additionally, she remarked that the statutory prohibition against taking deposits raises questions “on whether and how any existing non-profit intermediary can receive grant funding if they have had prior experience in making loans and providing other types of financial assistance” unrelated to the GHGR Fund.
Petros said NAFCU remains committed to “ensuring that credit unions are able to assist their communities through access to the GHGR Fund and is confident that credit union participation, to the fullest extent possible, will benefit consumers and best fulfill the intended goal of the GHGR Fund as enacted by Congress.”
NAFCU recently wrote to the EPA to request the agency to clarify that credit unions can participate in grant opportunities under the GHGR Fund.
The association will continue to engage the EPA on the GHGR Fund to clarify that credit unions will be able to participate and maximize its impact.