Court of Appeals Rules that Treasury Properly Denied $39 Million Section 1603 Grant Request

Tuesday, November 5, 2019 - 11:30am

The U.S. Treasury Department correctly denied a $39 million grant request under the American Recovery and Reinvestment Act (ARRA) Section 1603 program to a Virginia paper mill, according to the U.S. Court of Appeals for the Federal Circuit. The decision in WestRock Va. Corp. v. United States upheld an earlier decision by the U.S. Court of Federal Claims that upheld Treasury’s denial of WestRock Virginia Corporation’s application for the ARRA Section 1603 grant program in connection with an open-loop biomass cogeneration facility. WestRock claimed that any owner that uses property to produce a small amount of electricity, even if the property is in large part used for purposes entirely unrelated to the production of electricity, should receive the maximum grant under Section 1603 program, but the court ruled that isn’t the purpose of the ARRA legislation.