Board amends geothermal project financing; moves to Connecticut Green Bank loan at 4.25%

The New Haven Board of Alders on a motion amended a previously approved financing arrangement for a planned network geothermal system, directing the city to use Connecticut Green Bank conventional financing at an interest rate of 4.25% after the federal EPA Greenhouse Gas Reduction Fund became unavailable.

A member of the City Services and Environmental Policy Committee explained the amendment: because the EPA program that would have offered a 3% rate is not currently available, the city must utilize Green Bank financing at 4.25%. The speaker added that if ongoing litigation affecting the federal program is resolved in a way that restores the EPA fund, financing could revert to the 3% terms.

The amendment (LM-2024-0572) was moved, seconded and approved by the board. The change was described as protective of the project's financing given the federal-level development; the speaker urged colleagues to vote in favor of passing the item as amended.

The board's action amends the prior authorization to reflect current financing options and allows the city to proceed under the Connecticut Green Bank bridge loan terms.