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Feds drop community support required in Calumet loan
Mar 31, 2025
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3/31/2025‘Community benefits’ provision fades into the backgroundRead through Calumet’s loan guarantee agreement with the federal government and you’ll see references to something called “Justice40.”It was an initiative of former President Joe Biden, who created it with a 2021 executive order. It aimed to bring 40% of the economic and environmental benefits from energy, housing and other investments to disadvantaged communities. The government identified those communities with the help of a climate and economic justice screening tool that tracked multiple environmental and economic factors.Justice40 would have required some federal loan recipients, such as Calumet subsidiary Montana Renewables, to report a variety of community benefit information. Now, that regulatory framework that underpinned those loan programs has been rescinded, and that information might no longer be available.Calumet’s $1.67 billion loan, which will fund the expansion of the Montana Renewables biofuels plant, was full of references to Biden-era environmental justice policies. A press release announcing the loan commitment used the screening tool to identify areas around Great Falls as disadvantaged in energy burdens and housing costs. Another press release from January said that “all LPO [Loan Programs Office] borrowers are required to develop and ultimately implement a comprehensive Community Benefits Plan (CBP).”This was intended to give merit to Calumet’s loan guarantee agreement, which was signed on Jan. 10 and requires the company to submit annual community benefits plans and Justice40 annual reports.President Donald Trump took office 10 days after the loan agreement was signed. He rescinded Biden’s executive order and the Justice40 initiative contained therein. While Justice40 and the community benefits plan requirements remain in the signed agreement, it’s not clear whether Calumet will actually need to produce those reports.Ella Mendonsa, a senior manager at the Natural Resources Defense Council’s Equity and Environmental Justice Center, said that Justice40’s reporting requirements ensured that communities weren’t being harmed by large infrastructure and energy projects. It required companies to show that they were investing in communities, being conscious of public health and making good on job promises. These requirements were especially helpful in rural areas, which often don’t have robust systems to advocate for environmental justice and can be affected by legacy pollution.“The whole point of Justice40 was for communities that have suffered harm or economic disinvestment to have these dollars and health and human safety and good jobs in the community,” Mendonsa told Montana Free Press.Great Falls officials recently talked about the perceived lack of community benefit from Calumet. When discussing a proposed tax break on March 4, City Commissioner Susan Wolff described an agreement in The Dalles, Oregon, that required Google to pay into community project funds in exchange for tax benefits for a large data center. She described a need for community benefit information in Great Falls similar to what Justice40 would have required.“It bothers me a lot that I don’t see the recognition of or the importance of supporting the community in which your employees live and from which your profits come,” Wolff said.Previously, there wasn’t a standard requirement for community benefit reports from major facilities like refineries or large manufacturers. Justice40 required not only written reports but also “stakeholder engagement activities,” workforce development updates and diversity and equity efforts. Companies had to include “specific, actionable and measurable ways” to accomplish those plans.Now, information outlining Justice40 and community benefits plans has been stricken from federal websites. The government’s climate and economic justice screening tool was also dismantled, though it’s still referenced alongside Calumet’s loan. A representative for the U.S. Department of Energy, which guaranteed the loan to Calumet, said via email that “the Justice40 initiative is no longer part of operating procedure for the Loan Programs Office moving forward.” The spokesperson would not comment on the specific agreement with the Great Falls refinery and what would be required of the company.Media Oakes, a spokesperson for Calumet, said in an email that there is no plan to revise the loan agreement and that the company will comply with federal reporting requirements.Neither Oakes nor the Energy Department spokesperson responded to more detailed questions about the status of Justice40 requirements.Mendonsa, who worked on Justice40-related projects at the NRDC, said that there’s still some confusion about how some of these agreements will be addressed with the change in presidential priorities. She said it appears that in the absence of a revised loan agreement, the Justice40 reports will simply not be enforced.“If you’re going to remove a community benefit plan, you’re not really considering community benefit at all,” Mendonsa said.Trustees pass on spring school levyThe Great Falls Public Schools Board of Trustees voted last week to forego a mill levy request in the spring election, set for May 6. Finance committee chair Mark Finnicum expressed confidence in the district’s ability to cover a projected $2.5 million funding gap in the coming budget. The board will also await any changes to funding from bills coming from the Montana Legislature.“Barring anything catastrophic coming out of Helena, we feel pretty strong about how our next fiscal year will go,” Finnicum said at the meeting on March 24.The board amended its resolution to indicate that the district will not request a funding levy for the spring election only. State law allows school districts to move ahead with a levy election in the fall during legislative years, giving the boards the opportunity to react to new laws.Brian Patrick, GFPS director of business operations, told MTFP that the district is closely watching bills moving through the Legislature. The most visible example is the STARS Act, which is moving toward passage and would provide $100 million for teachers early in their careers. Patrick said he also expects legislators to set an inflationary increase for school funding over the next biennium, which will impact the district’s budget.Other factors, including labor negotiations with teacher unions, are still pending and will affect budget planning for the coming year. The district plans to use reserves, bolstered by COVID funds, to cover the budget gap.Trustee Bill Bronson told MTFP that the board reserves the right to request a levy election in the fall, but they don’t expect to. He said that he considered the burden of rising property taxes in his vote to forego a levy election. He’s also watching the action in Helena for potential property tax relief bills.“We’re just as concerned as they are about providing some level of relief to a lot of taxpayers,” Bronson said. “And if we can come up with a property tax system at the end of the session that makes a little more sense, we would feel more comfortable as a board looking at levies in the future.”5 Things to Know in Great FallsTwo incumbents and two challengers have filed for candidacy in this spring’s Great Falls Public Schools board election. Three board seats are up for election. Current board members Paige Turoski and Gordon Johnson have filed for candidacy. Two challengers, Tony Rosales and Craig Duff, have also registered as candidates. The election will be conducted through mail ballots, and the last day to return those will be May 6. Ballots should be mailed by April 21, according to the county elections office.The Little Shell Tribe of Chippewa Indians received a $32,350 grant from the Montana Department of Commerce through a tribal tourism program. The funds will support the Little Shell Powwow and venue additions at Mount Royal. This is the future site of a massive event center and resort, which is planned to include a 200-room hotel, water park, event center, gaming and more.Cascade County is working toward a temporary trash disposal area as it constructs a new permanent site to serve the Belt and Armington areas. Residents can expect trash containers to be placed at the disposal site in the near term, bringing disposal services back to the area since the old site closed in December amid leasing disputes. The county is hoping to have the temporary site ready within a couple of weeks, according to a press release. The new dump site is right next door to the old one.Family Promise announced a fundraiser event for May 3 at the Elk’s Club. The “Dancing Through the Decades” themed event will feature a roast beef dinner, music and a silent auction. Classic music from the ‘50s through the ‘90s will be played, and a best-dressed award will be given to attendees who match each decade. Family Promise provides services to families experiencing homelessness.Montana State Fair organizers announced musical acts for this summer’s event. They include Jo Dee Messina, Smash Mouth, The Oak Ridge Boys and Tucker Wetmore. The fair is scheduled for July 25 through Aug. 2. More information can be found here.Photo Op Credit: Matt Hudson/MTFPAuctioneer Troy Black led The Russell art auction for more than four hours during the annual event on March 22 at the Heritage Inn. The museum announced more than $9 million in sales from all the auctions that took place during Western Art Week.Read a behind-the-scenes account of how the staff of the C.M. Russell Museum make the auction happen.Calling all photographers: Submit a photo for Great Falls This Week to mhudson@montanafreepress.org.Public NoticeGreat Falls Subaru has objected to road closures on its block during the annual Crusin’ the Drag car show. On Tuesday, the Great Falls City Commission will hear the business’ appeal. Road closures for Crusin’ the Drag are planned for Central Avenue from Park Drive to Ninth Street. Great Falls Subaru is requesting that the road closures end at Eighth Street to retain access to the business from Central. The business sits just east of Eighth Street. The company said that it had record-breaking sales during the 2023 Crusin’ the Drag when that portion of Central was open. In 2024, when that section was closed, the company said it had no sales during the event.Event organizers told city officials that they expect a larger turnout and around 1,000 cars for this 25th-anniversary event. City staff also noted that in 2023 the city made a last-minute change to road closures at the request of Great Falls Subaru to accommodate a “big sale” scheduled that day. City staff are recommending that road closures extend to Ninth Street, which is the scope approved in the event application. Meeting documents say that Great Falls Subaru has multiple property entrances from adjacent streets and that reducing the road closure would negatively impact other parts of the event.On Tuesday, commissioners will hear perspectives from Great Falls Subaru and city staff members. There will also be a public comment portion of the meeting before the commission makes a ruling.The special meeting is 4 p.m. Tuesday at the Civic Center. Cruisin’ the Drag is scheduled for May 3.eet to Fifth Street. City staff coordinated with organizers of the Fourth of July parade to ensure the area will be clear for the route.
IN CASE YOU MISSED IT
Cascade County will abandon trash site, build a new one next door
Residents questioned the county’s judgment in taking out a loan for a new dump site after lease negotiations on the former site fell through.
by Matt Hudson
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