Treasury Sanctions Iranian Officials and Entities Responsible for Ongoing Crackdown on Protests and Internet Censorship
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
Treasury Sanctions Iranian Officials and Entities Responsible for Ongoing Crackdown on Protests and Internet Censorship
WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating 10 Iranian officials for the brutal ongoing crackdown on nationwide protests in Iran, as well as two Iranian intelligence actors and two Iranian entities involved in the Iranian government’s efforts to disrupt digital freedom. Today’s action comes 40 days after 22-year-old Mahsa Amini’s arrest and death in the custody of Iran’s Morality Police and the ongoing brutal crackdown on peaceful protests in Iran, and follows OFAC designations on September 22 and October 6, 2022, which targeted key Iranian organizations and officials involved in the Iranian regime’s ongoing repression and its denial of the fundamental freedoms and universal rights of its citizens. These sanctions, coupled with additional initiatives such as the release of Iran General License D-2, which expands and clarifies the range of U.S. software and internet services available to Iranians under OFAC’s sanctions program, demonstrate the United States’ commitment to support the Iranian people’s call for accountability and justice, as well as their right to freely exchange information, including online.
“Forty days after the tragic death of Mahsa Amini, Iranians continue to bravely protest in the face of brutal suppression and disruption of internet access,” said Under Secretary of the Treasury Brian E. Nelson. “The United States is imposing new sanctions on Iranian officials overseeing organizations involved in violent crackdowns and killings, including of children, as part of our commitment to hold all levels of the Iranian government accountable for its repression.”
Today’s actions are taken pursuant to Executive Order (E.O.) 13553, which authorizes sanctions on certain persons with respect to serious human rights abuses by the Government of Iran; E.O. 13846, which authorizes sanctions on persons who engage in censorship or other activities with respect to Iran; and E.O. 13606, which authorizes sanctions with respect to grave human rights abuses by the Governments of Iran and Syria via information technology.
The State Department is also concurrently sanctioning Mohammad Reza Mirheydary, Mohammad Reza Ostad, and Iran’s Bushehr Prison pursuant to the Countering America’s Adversaries Through Sanctions Act (CAATSA) for their roles in human rights abuses.
Islamic Revolutionary Guards Corps (IRGC) Leadership
As Commander of the Islamic Revolutionary Guards Corps Intelligence Organization (IRGC IO), Mohammad Kazemi (Kazemi) oversees one of the regime’s most brutal security services with a long record of internal repression. Since becoming Commander of the IRGC IO in June 2022, Kazemi has overseen a heightened crackdown on civil society across the country. Recently, the IRGC IO has broadened its scope, and is responsible for thwarting perceived political subversion, coordinating and managing the repression of protests, surveilling and throttling the use of the internet, and arresting dissidents. The IRGC and its Basij militia have used lethal force against protesters and is an essential element of the regime’s aggressive use of violence against the Iranian people.
Abbas Nilforushan (Nilforushan), the Deputy Commander for Operations of the IRGC, is responsible for the IRGC’s Operations Command, one of the security organizations directly in charge of protest suppression, which has played a critical role in arresting protest leaders during previous protests. Nilforushan is an experienced IRGC commander who also served as a military adviser in the Syrian Civil War.
Kazemi and Nilforushan are both being designated pursuant to E.O. 13553 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC.
Sistan and Baluchistan Provincial Officials
Hossein Modarres Khiabani (Khiabani) is the governor of Sistan and Baluchistan province, site of some of the worst violence in the latest round of protests. On September 30, 2022, after Friday prayers in the provincial capital, Zahedan, security forces fired live ammunition, tear gas, and metal pellets at protesters and bystanders, killing at least 80 people, including several children. Hundreds more were injured. Khiabani, in his role as governor, had responsibility for oversight of Iranian security forces’ violent response to those protests.
Khiabani is being designated pursuant to E.O. 13553 for being an official of the Government of Iran and being responsible for or complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses against persons in Iran or Iranian citizens or residents, or the family members of the foregoing, on or after June 12, 2009, regardless of whether such abuses occurred in Iran.
Ahmad Shafahi (Shafahi) is the commander of Salman Corps, the IRGC military unit in Sistan and Baluchistan. Shafahi has attacked free and open communications, labelling satellite television stations that are not under the control of the Iranian regime as “tools of the enemy.” He also had direct control of IRGC and Basij forces responsible for violent actions against peaceful protestors during the recent crackdown in Sistan and Baluchistan.
Shafahi is being designated pursuant to E.O. 13553 for having acted or purported to act for or on behalf of, directly or indirectly, the IRGC.
Iranian Prison Officials
Hedayat Farzadi (Farzadi) operates one of Iran’s most notorious prisons as the warden of Evin Prison. Numerous protestors have been sent to Evin Prison during the latest round of protests where they have been subjected to torture and other forms of physical abuse.
Farzadi was an infamous figure in the Iranian prison system even before assuming the leadership of Evin Prison. During his tenure at Dizel Abad Prison in western Iran, which lasted 10 years, Farzadi was known to organize public amputations of criminals convicted of petty crimes. As director of Greater Tehran Penitentiary, also known as Fashafouyeh Prison, Farzadi oversaw the torture and maltreatment of numerous prisoners, including political prisoners and members of religious minority groups. Several prisoners under his responsibility are known to have died from lack of medical treatment. Some, including political prisoners and members of religious minority groups, were killed by prison guards. Farzadi himself was known to personally carry out executions.
Farzadi was eventually dismissed from Fashafouyeh Prison after the death of a political prisoner, but the Iranian prison system and security establishment, to include the IRGC, continues to protect him. Despite his record of abuse, after being dismissed from Fashafouyeh, Farzadi was named the director of the inspection department of Iran’s prison organization.
Seyyed Heshmatollah Hayat Al-Ghaib (Al-Ghaib) serves as the Director-General of Tehran Province Prisons, a role which gives him oversight of Evin, Fashafouyeh, and other notorious prisons in the region. During his tenure, Al-Ghaib has repeatedly dismissed concerns from prisoners and Iranian officials regarding poor conditions at the prisons he administered. Under his administration, Tehran’s prisons continue to be known for their brutality and maltreatment of prisoners.
Heidar Pasandideh (Pasandideh), the warden of Sanandaj Central Prison in Kurdistan province, has overseen the detention and daily torture of prisoners arrested during the ongoing protests in Iran. Under his administration, Sanandaj Central Prison has been the site of arbitrary executions of prisoners.
Murad Fathi (Fathi) serves as the Director-General of Prisons in Kurdistan Province. Prisons under his control have held and tortured prisoners, including protestors. Several Iranian Kurdish prisoners have died in prisons under Fathi’s control from torture or lack of medical care.
Morteza Piri (Piri), the warden of Zahedan Prison, is known in Sistan and Baluchistan by prisoners and their families for his brutality toward prisoners. Under his watch, Zahedan Prison has conducted numerous executions, a disproportionate number of them targeted at Iran’s Baluchi minority group.
Mohammad Hossein Khosravi (Khosravi) is the Director-General of Sistan and Baluchistan Province Prisons and former warden of Zahedan Prison. Under his administration, Zahedan Prison was infamous for torture and poor conditions, including a lack of medical care and the mistreatment of prisoners by staff.
Farzadi, Al-Ghaib, Pasandideh, Fathi, Piri, and Khosravi are being designated pursuant to E.O. 13553 for being officials of the Government of Iran or persons acting on behalf of the Government of Iran (including members of paramilitary organizations) who are responsible for or complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses against persons in Iran or Iranian citizens or residents, or the family members of the foregoing, on or after June 12, 2009, regardless of whether such abuses occurred in Iran.
MOIS Cyber Actors
Seyed Mojtaba Mostafavi (Mostafavi), a member of Iran’s Ministry of Intelligence and Security (MOIS), was directed by the MOIS to train and recruit hackers. Together with another MOIS member, Farzin Karimi (Karimi), they co-founded the Ravin Academy. The Ravin Academy is a school that trains individuals in cyber security and hacking, and recruits from among these trainees for the MOIS. In addition to training and recruitment, Ravin Academy assists the MOIS with a variety of cyber services, including information security training, threat hunting, cyber security, red team, digital forensics, malware analysis, security auditing, penetration testing, network defense, incident response, vulnerability analysis, mobile penetration testing, reverse engineering, and security research.
Ravin Academy is being designated pursuant to E.O. 13606 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the MOIS.
Mostafavi and Karimi are being designated pursuant to E.O. 13606 for having acted or purported to act for or on behalf of, directly or indirectly, Ravin Academy.
Iranian company Samane Gostar Sahab Pardaz Private Limited Company (Sahab Pardaz) is one of the main operators of social media filtering services in Iran. Sahab Pardaz actively provides censorship, surveillance, and espionage tools to the Government of Iran by using big data analysis to analyze the private data of Iranian citizens. The company collects raw internet records from Iranians to build its filtering system. Sahab Pardaz executes its filtering activities by manufacturing and providing technical support for policy enforcer filtering tools for the Iranian government, and by using Deep Packet Inspection (DPI) tools to aid the regime in logging, blocking, and detecting various types of internet traffic. In 2016, Sahab Pardaz signed a contract worth millions of dollars with Iran’s Telecommunication Infrastructure Company, affiliated with the Ministry of Communication and Technology, for the creation of a system of cultural and social protection.
Sahab Pardaz is being designated pursuant to E.O. 13846 for having engaged in censorship or other activities with respect to Iran on or after June 12, 2009, that prohibit, limit, or penalize the exercise of freedom of expression or assembly by citizens of Iran, or that limit access to print or broadcast media, including the facilitation or support of intentional frequency manipulation by the Government of Iran that would jam or restrict an international signal.
Sanctions Implications
As a result of today’s action, all property and interests in property of these persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. OFAC regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.
In addition, persons that engage in certain transactions with the persons designated today may themselves be exposed to sanctions or subject to an enforcement action. Furthermore, unless an exception applies, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the persons designated today could be subject to U.S. sanctions.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please visit here.
Click here for identifying information on the persons designated today.
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Treasury Targets Corruption and the Kremlin’s Malign Influence Operations in Moldova
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov \
Treasury Targets Corruption and the Kremlin’s Malign Influence Operations in Moldova
WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action to counter the Government of the Russian Federation’s (GoR) persistent malign influence campaigns and systemic corruption in Moldova by imposing sanctions on nine individuals and 12 entities. The individuals and entities sanctioned today include oligarchs widely recognized for capturing and corrupting Moldova’s political and economic institutions and those acting as instruments of Russia’s global influence campaign, which seeks to manipulate the United States and its allies and partners, including Moldova and Ukraine. The designations include former Moldovan government official Vladimir Plahotniuc, who engaged in state capture by exerting control over and manipulating key sectors of Moldova’s government, including the law enforcement, electoral, and judicial sectors.
“The sanctions imposed today expose not only Russia’s covert strategy in Moldova, but also demonstrate how corruption undermines the rule of law,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Russian influence operations attempt to exploit weaknesses in target countries in order to destabilize them from within. The United States continues to support Moldovan efforts to combat corruption and counter Russian influence.”
For years, the GoR has supported influence and destabilization campaigns, which often involve weaponizing corruption to further its goals. While the GoR pushes its narrative by supporting influence agents, it simultaneously takes advantage of corruption to advance its own interests.
ACTS OF CORRUPTION
OFAC is designating former Moldovan government official Vladimir Plahotniuc (Plahotniuc), a former Moldovan Member of Parliament who served as both de facto leader and elected chair of the Democratic Party of Moldova (PDM).
Plahotniuc maintained control over the country’s law enforcement apparatus to target political and business rivals. Specifically, Plahotniuc directed Moldovan law enforcement to focus investigations on individuals and entities that were in political opposition to him and the PDM in advance of elections in 2018.
Plahotniuc also used Moldovan government officials as intermediaries to bribe law enforcement officials in order to maintain their loyalty and further cement his control o ver Moldova. In 2018, Plahotniuc ordered Moldovan government ministers to pass and implement proposals to increase financial incentives to law enforcement, to further buy their allegiance.
Plahotniuc controlled the judicial system and used Moldovan courts to manipulate and invalidate the June 2018 mayoral election in Chisinau. In a separate occurrence, Plahotniuc closed voting stations in areas where his party was not expected to do well.
Plahotniuc also maintained control of key media outlets, further enabling his influence and ability to exert leverage over the government to target his opponents and protect himself and his allies.
Plahotniuc explicitly engaged in corrupt arrangements with Moldovan government officials. For example, Plahotniuc arranged for the relative of a high-ranking Moldovan government official to obtain a key business position, in exchange for the official’s support in appointing a Moldovan energy entity of Plahotniuc’s choosing. Plahotniuc also attempted to bribe Moldovan politicians to switch political parties.
OFAC is designating Plahotniuc pursuant to E.O. 13818 for being a former government official, who is responsible for or complicit in, or who has directly or indirectly engaged in corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery. The State Department imposed visa restrictions on Plahotniuc in January 2020 under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act for his involvement in significant corruption. Plahotniuc and his immediate family members are generally ineligible for visas to the United States.
RUSSIA’S EFFORTS TO SUBVERT MOLDOVAN DEMOCRACY
Russia has attempted to subvert democracy around the world through both overt and covert influence operations. Recently, as Russia faces military setbacks and global outrage over its brutal actions in Ukraine, Russia’s operatives have considered increasingly desperate measures to prevent further erosion of its influence.
Ilan Mironovich Shor (Shor) is a Moldovan politician and chairman of the Shor Party, a populist Moldovan political party. He was previously arrested on money laundering and embezzlement charges related to the 2014 theft of $1 billion from Moldovan banks.
In advance of the 2021 Moldovan elections, Russia planned to undermine Moldovan president Maia Sandu and return Moldova to Russia's sphere of influence. To support this effort, Shor worked with Russian individuals to create a political alliance to control Moldova's parliament, which would then support several pieces of legislation in the interests of the Russian Federation. As of June 2022, Shor had received Russian support and the Shor Party was coordinating with representatives of other oligarchs to create political unrest in Moldova. In June 2022, Shor worked with Moscow-based entities to undermine Moldova's EU bid as the vote for candidate status was underway.
Shor's wife is the Russian pop singer Sara Lvovna Shor, who was decorated by Putin as an honored artist of Russia.
OFAC is designating Ilan Mironovich Shor pursuant to E.O. 14024 for being responsible for or complicit in, or for having directly or indirectly engaged or attempted to engage in interference in a United States or other foreign government election for or on behalf of, or for the benefit of, directly or indirectly, the Government of the Russian Federation.
OFAC is designating the Shor Party pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Shor, a person designated pursuant to E.O. 14024.
OFAC is designating Sara Lvovna Shor pursuant to E.O. 14024 for being the spouse of Shor, a person designated pursuant to E.O. 14024.
In advance of the 2021 Moldovan elections, Igor Yuryevich Chayka (Chayka), in conjunction with Kremlin Press Secretary Dmitry Peskov, developed detailed plans to undermine Moldovan president Maia Sandu and return Moldova to Russia’s sphere of influence. Chayka is the son of Yuriy Chayka, a member of Russia’s Security Council who was designated pursuant to E.O. 14024 on April 6, 2022. Chayka used his father’s connections and influence to amass and secure his business empire.
Chayka brokered an alliance between supporters of Ilan Shor and the Moldovan Socialist Party (PSRM), represented by Igor Dodon (Dodon), the former President of Moldova who was recently indicted for corruption by Moldovan authorities. In exchange for the promise of Russian support in the election, Chayka obtained backing for legislation preferred by the Kremlin, including a law to strip Moldova’s president of control of the country's intelligence agency. The GoR used Chayka’s companies as a front to funnel money to the collaborating political parties in Moldova. Some of these illicit campaign funds were earmarked for bribes and electoral fraud.
OFAC designated Chayka pursuant to E.O. 14024 for being responsible for or complicit in, or for having directly or indirectly engaged or attempted to engage in interference in a United States or other foreign government election for or on behalf of, or for the benefit of, directly or indirectly, the Government of the Russian Federation. OFAC also designated Chayka pursuant to E.O. 14024 for being the adult child of Yuriy Chayka, a person designated pursuant to E.O. 14024.
Chayka owns various Russia-located enterprises: OOO Aqua Solid, OOO Ekogrupp, OOO Inzhiniring.rf, and OOO Inovatsii Sveta. OOO Ekogrupp owns OOO Khartiya, which in turn owns Proekt-Ekologiya, OOO Region-Comfort, and OOO Mezhmunitsipalnoe Avtotransportnoyoe Predpreyatie. OFAC designated these entities pursuant to E.O. 14024 for being owned by a person designated pursuant to E.O. 14024.
Chayka Associates
Ivan Alesksandrovich Zavorotnyi (Zavorotnyi), a Russian national, is an associate of Chayka who serves on the board of many of Chayka’s companies. OFAC designated Zavorotnyi for being or having been a senior executive officer of OOO Inovatsii Sveta. OFAC designated OOO Agro-Region and OOO Zolotoi Vek for being owned by Zavorotnyi.
Yuriy Igorevich Gudilin (Gudilin), a political technologist and former Russian Federal Security Service (FSB) officer, coordinated efforts in 2020 and 2021 to influence the outcome of Moldova’s elections. Gudilin worked closely with Russian nationals Olga Yurievna Grak (Grak) and Leonid Mikhailovich Gonin (Gonin) on these efforts.
Gudilin, Grak, and Gonin worked as advisors to former Moldovan President Igor Dodon during the 2020 Moldovan presidential election. During the course of the campaign, the Russian consultants also met with a large number of members of the PSRM, which at the time was led by Dodon. In these meetings, Gudilin and Grak pressured senior PSRM members to accept their assistance and guidance by promising they would weigh in favorably with the Russian Presidential Administration with regard to Moldovan government requests for assistance. In 2020, Gudilin also facilitated the setup of a payment channel using the Tether cryptocurrency, likely for funding election influence operations. In 2021, FSB-linked political advisors proposed using the Russian Ministry of the Interior to locate Moldovan citizens living in Russia and convince them to vote. In addition, Russian mass media would promote messages useful to Dodon’s campaign to Moldovan citizens living in Russia.
Also in 2021, an FSB associate strategized with Chayka regarding production of propaganda videos intended to influence the Moldovan electorate. The intent was likely to decrease the voting participation of the Moldovan diaspora and of pro-European voters, and to increase the voting participation of pro-Russian voters. The FSB associate planned to travel to Moldova with Gudilin, likely in connection with production of the videos.
Although its efforts to influence Moldova’s 2020 and 2021 elections failed, the Kremlin continues to organize efforts to return a pro-Russian government to power. Recognizing the loss of popular support for Moldova’s old pro-Russia political elite, Gudilin’s team offered support to an opposition political group, the National Alternative Movement (NAM). These influence efforts are closely coordinated with Moscow’s use of energy as a political weapon against the Moldovan government. Among its efforts to undermine the government, Gudilin’s team planned to hire a permanent team to post comments on social media and online broadcasts. Gudilin worked with a manager for the U.S.-sanctioned Internet Research Agency to set up this “troll factory.”
One example of Russia’s increasingly desperate measures to prevent further erosion of its influence is that, as part of one scheme proposed to Gudilin, pro-Russian actors would stage a series of vehicle break-ins in Moldova, which pro-Russian disinformation outlets would falsely blame on Ukrainian refugees.
OFAC designated Gudilin, Grak, and Gonin pursuant to E.O. 14024 for being responsible for or complicit in, or for having directly or indirectly engaged or attempted to engage in, interference in a United States or other foreign government election for or on behalf of, or for the benefit of, directly or indirectly, the Government of the Russian Federation.
ENTITIES SUPPORTING RUSSIAN INTELLIGENCE OPERATIONS
In addition to his role in the GoR’s efforts to influence elections in Moldova and undermine the country’s current pro-Western government, Igor Chayka also has connections to Russian cybercriminals. In 2018, Chayka and his associate Aleksei Valeryevich Troshin (Troshin), a Russian national, invested millions of dollars to set up the National Engineering Corporation (NIK) – ostensibly, an engineering firm working on technological projects for Russian businesses and state enterprises. However, U.S.-designated cybercriminal Maksim Yakubets (Yakubets) was involved in setting up the NIK offices and its hiring practices. Yakubets’ employment at NIK provided cover for his ongoing criminal activities linked to the hacking group known as Evil Corp. Yakubets and Evil Corp were designated in December of 2019.
As part of his activity at NIK, Yakubets continued his work on behalf of the Russian intelligence services. Yakubets was previously designated by OFAC for providing support to the FSB. Yakubets has since developed a relationship with all three major Russian intelligence services, including personally meeting with SVR Director Sergey Naryshkin.
OFAC designated NIK pursuant to E.O. 14024 for operating or having operated in the technology sector of the Russian Federation economy. OFAC designated Troshin pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of NIK.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.
GLOBAL MAGNITSKY
Building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.
Click here for more information on the individuals and entities designated today.
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READOUT: Stakeholder Roundtable on Clean Power Generation and the Inflation Reduction Act
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
READOUT: Stakeholder Roundtable on Clean Power Generation and the Inflation Reduction Act
WASHINGTON — Today, U.S. Secretary of the Treasury Janet L. Yellen participated in a virtual roundtable with key stakeholders on clean power generation and the Inflation Reduction Act. The roundtable is part of a series of discussions the Treasury Department is hosting as it solicits input from the public to inform its work implementing the Inflation Reduction Act. Nearly three quarters of the Inflation Reduction Act’s $369 billion climate change investment – $270 billion – is delivered via tax incentives, putting Treasury at the forefront of this landmark law.
Secretary Yellen was joined by White House Senior Advisor for Clean Energy Implementation and Innovation John Podesta, as well as Treasury Climate Counselor John Morton and Assistant Secretary for Tax Policy Lily Batchelder.
The roundtable featured 17 leaders from across the clean power ecosystem, representing utilities, project developers, manufacturers, purchasers, workers, local communities, and other key stakeholders. Collectively the participating groups represent more than one million unionized workers, more than 1,000 firms across the clean energy value chain, and more than 2,000 public and private utilities and rural electric cooperatives that supply power to hundreds of millions of Americans.
Secretary Yellen emphasized that the Inflation Reduction Act provides long-term clarity and certainty for the clean energy sector, and underscored Treasury’s commitment to work expeditiously to provide guidance so that investments can move forward and our climate and economy can realize the benefits of the law as quickly as possible. Participants also discussed several new issues for clean energy production and investment tax incentives, including prevailing wage and apprenticeship provisions, bonuses for investing in low-income communities and energy communities, bonuses for using domestic content, and new ways to monetize credits.
Tomorrow, Deputy Secretary Adeyemo will participate in another roundtable focused on climate impact and equity with nearly two-dozen leaders from major climate advocacy organizations, environmental justice organizations, and labor unions. Tomorrow’s discussion will build on an earlier dialogue with community-based organizations and financial institutions held in conjunction with the Freedman’s Bank Forum on October 4. In conjunction with that dialogue, Treasury released a fact sheet outlining how the Inflation Reduction Act’s clean energy tax incentives will support building an equitable clean energy economy.
Next week, Secretary Yellen will participate in a roundtable with renewable energy investors to discuss how the public and private sectors can work together to leverage incentives in the Inflation Reduction Act to mobilize the large amount of capital that is needed to build a clean energy economy. According to third-party estimates, these transformational incentives are projected to help catalyze trillions in private investment in energy supply infrastructure over the next decade.
In the coming weeks, Treasury will also host roundtables on additional sectors, including clean vehicles and heavy industry.
The series of roundtables comes on the heels of six notices Treasury issued earlier this month requesting input on key climate and clean energy tax incentives of the Inflation Reduction Act. Earlier this month, Treasury also issued a fact sheet providing more information on the Inflation Reduction Act’s implementation process.
Organizations participating in today’s roundtable:
• American Clean Power Association
• American Council on Renewable Energy
• American Public Power Association
• Clean Energy Buyers Association
• Edison Electric Institute
• Electric Power Research Institute
• GRID Alternatives
• International Brotherhood of Electrical Workers
• National Association of Regulatory Utility Commissioners
• National Electrical Manufacturers Association
• National Rural Electric Cooperative Association
• Solar Energy Industries Association
• Solar Energy Manufacturers for America Coalition
• Solar Stewards
• Utility Workers Union of America
• WE Solar
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Media Advisory: Secretary of the Treasury Janet L. Yellen to Travel to Ohio to Highlight Biden Administration’s Historic Investments in American Manufacturing
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
Media Advisory
Secretary of the Treasury Janet L. Yellen to Travel to Ohio to Highlight Biden Administration’s Historic Investments in American Manufacturing
WASHINGTON – On Thursday, October 27, Treasury Secretary Janet L. Yellen will travel to Cleveland, Ohio and join Senator Sherrod Brown to highlight the Biden Administration’s work to rebuild American manufacturing in communities across the country.
At 11:20 AM, Secretary Yellen and Senator Brown will deliver remarks to help celebrate the opening of the new headquarters of the Manufacturing Advocacy and Growth Network (MAGNET), a Cleveland-based non-profit that helps small- and mid-sized manufacturers grow through consulting support, assistance for start-ups, and workforce development. MAGNET is part of the Manufacturing Extension Partnership through the National Institute of Standards and Technology and the state of Ohio. These remarks will be open to pre-credential press.
Ahead of her remarks, Secretary Yellen will hold a roundtable discussion at MAGNET with Cleveland-area manufacturers followed by a tour of the new headquarters. The roundtable and tour will have a spray at the top for pre-credential press.
During her remarks, Secretary Yellen will discuss how the President’s economic agenda has made historic investments in American manufacturing in communities like Cleveland – and is working to ensure economic opportunity beyond the coasts. The Secretary will highlight how the historically quick economic recovery under President Biden has helped create almost 700,000 manufacturing jobs. Secretary Yellen will also note how the trifecta of economic legislation passed by President Biden – the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act – are already helping drive historic manufacturing investments like Intel’s semiconductor fab in central Ohio, and over $100 billion in private sector funding for electric vehicle production, battery factories, and charging infrastructure.
While in Cleveland, Secretary Yellen will also have lunch with local elected officials and highlight support for cities and states through the American Rescue Plan. This lunch will have a spray at the top for pre-credential press. Later, the Secretary will also meet with local business leaders at the Greater Cleveland Partnership. This meeting is closed press.
All interested media please RSVP to press@treasury.gov.
A livestream will be available here.
WHO: Secretary of the Treasury Janet L. Yellen and Senator Sherrod Brown at MAGNET
WHEN: Thursday, October 27, 2022
Roundtable: 10:00 AM
Tour of MAGNET: 10:45 AM
Remarks: 11:20 AM
Press Check-in Start Time: 9:00 AM
WHERE: MAGNET, 1800 E. 63rd St,Cleveland, Ohio 44103
Note for Press: Please enter through the entrance near the playground.
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Biden-Harris Administration Announces Vermont to Receive Over $90 Million in American Rescue Plan Funds to Increase Access to Affordable, High-Speed Internet
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
Biden-Harris Administration Announces Vermont to Receive Over $90 Million in American Rescue Plan Funds to Increase Access to Affordable, High-Speed Internet
Vermont will use its funding through the Capital Projects Fund to connect nearly 14,000 homes and businesses to affordable, high-speed internet
WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of over $90 million for broadband projects in the state of Vermont under the American Rescue Plan’s Capital Projects Fund (CPF). Vermont will use its funding to connect nearly 14,000 homes and businesses to affordable, high-speed internet. The funding advances the Biden-Harris Administration’s commitment to connect every American household to affordable, reliable high-speed internet.
“The pandemic exposed longstanding challenges that workers and families face when they don’t have adequate access to the internet, especially those living in rural areas and other unconnected communities. That is why the Biden-Harris Administration’s broadband investments across the country are so critical,” said Deputy Secretary of the Treasury Wally Adeyemo. “This funding through the American Rescue Plan will help provide affordable, high-speed internet service to communities across Vermont, including the most rural parts of the state. We commend Vermont for targeting this funding to places where it is most urgently needed.”
“I am delighted about Treasury’s approval of Vermont’s Coronavirus Capital Projects Fund plan. The COVID-19 pandemic dramatically changed the definition of the modern-day workplace,” said U.S. Senator Patrick Leahy. “Homes across the country transformed into remote offices while work trips and in-person meetings became hour-long Zoom calls. These past few years have only exacerbated the growing digital divide between urban and rural America. That is one of the many reasons why Congress acted with the passage and enactment of the American Rescue Plan Act. From Beecher Falls to Bennington, this American Rescue Plan funding will increase equitable access to high-speed, quality internet service in Vermont at an affordable cost. These funds will give the “last mile” rural communities throughout Vermont the ability to stay connected with the digital, global economy. As Chair of the Senate Appropriations Committee, I am proud to have fought for and secured a minimum allocation for the Capital Projects Fund to ensure that small, rural states like Vermont have the resources they need to be connected to our ever-changing world.”
“This is a historic investment in broadband infrastructure in Vermont,” said Representative Peter Welch. “Broadband is essential and every community in our state needs access to high-speed service. This support from the Capital Projects Fund will help us finally get there by expanding broadband throughout Vermont, helping businesses thrive, students learn, and Vermonters stay connected. I am pleased to have worked alongside Senators Leahy and Sanders to bring this funding back to Vermont to close the digital divide and help rural America succeed.”
Treasury today approved $90 million for broadband infrastructure, which Vermont estimates will connect 13,818 households and businesses – representing 22% of locations still lacking high-speed internet access. Vermont’s award will fund the Vermont Community Broadband Construction Grant Program, a formula grant program that provides funding to communities for the construction of locally defined and prioritized broadband infrastructure projects through a system of regional Communication Union Districts (CUDs). The total funding amount allocated for each CUD was determined based on the percentage of road segments without existing access to high-speed wireline facilities. The Broadband Construction Grant Program is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. The plan submitted to Treasury that is being approved today represents 80% of the state’s total allocation under the CPF program. Vermont submitted plans for the remainder of their CPF funds and these plans are currently under review by Treasury.
The CPF provides $10 billion to states, territories, freely associated states, and Tribal governments to fund critical capital projects that enable work, education, and health monitoring in response to the public health emergency. In addition to the $10 billion provided by the CPF, many governments are using a portion of their State and Local Fiscal Recovery Funds (SLFRF) toward meeting the Biden-Harris Administration’s goal of connecting every American household to affordable, reliable high-speed internet. Together, these American Rescue Plan programs and the Bipartisan Infrastructure Law are working in tandem to close the digital divide – deploying high-speed internet to those without access today and lowering costs for those who cannot afford it.
In accordance with Treasury’s guidance, each state’s plan requires service providers to participate in the Federal Communications Commission’s (FCC) new Affordable Connectivity Program (ACP). The ACP helps ensure that households can afford the high-speed internet they need for work, school, healthcare, and more by providing a discount of up to $30 per month (or up to $75 per eligible household on Tribal lands). Experts estimate that nearly 40% of U.S. households are eligible for the program.
To further lower costs, President Biden and Vice President Harris announced the Administration had secured commitments from 20 leading internet service providers—covering more than 80% of the U.S. population—to offer all ACP-eligible households high-speed, high-quality internet plans for no more than $30 per month. As a result, ACP-eligible households can receive internet access at no cost and can check their eligibility for free internet and sign up at GetInternet.gov.
In addition to requiring funding recipients to participate in the ACP, Treasury’s guidance requires recipients to consider whether the federally funded networks will be affordable to the target markets in their service areas and encourages recipients to require that a federally funded project offer at least one low-cost option at speeds that are sufficient for a household with multiple users.
Treasury announced state awards in June, July, August, September, and October, and will continue approving state and Tribal plans on a rolling basis.
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READOUT: Treasury Tribal Advisory Committee Meeting
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
READOUT: Treasury Tribal Advisory Committee Meeting
WASHINGTON — Today. U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Treasury Tribal Advisory Committee. The meeting is the Committee’s first since former Committee member, Chief Lynn Malerba, was appointed U.S. Treasurer earlier this year.
During the meeting, Secretary Yellen emphasized Treasury’s commitment to strengthening its nation-to-nation relationships with Tribal governments and investing in Tribal communities, while Committee members shared their priorities with the Secretary.
The Committee received updates from the subcommittees on the Tribal General Welfare Exclusion Act, dual taxation, and Tribal pensions. The Committee also heard public comments on Tribal taxation matters ranging from Tribal general welfare programs to the tax status of Tribally chartered corporations.
U.S. Treasurer Malerba announced Treasury would commence formal consultations with tribes on the Tribal General Welfare Exclusion Act in December to inform the development of guidance to implement the Act.
The following individuals were in attendance at the Committee meeting in-person at Treasury or virtually:
Janet L. Yellen, Secretary of the Treasury
Chief Lynn Malerba, U.S. Treasurer
W. Ron Allen, Chairman and Chief Executive Office of the Jamestown S’Klallam Tribe
Rebecca Benally, Member of the Navajo Nation
Sharon Edenfield, Tribal Council Member, Confederated Tribes of the Siletz Indians
Jean Swift, Interim Chief Financial Officer, Mashantucket Pequot Tribe
Stephanie Williams, Chief Financial Officer of Naskila Gaming, Alabama-Coushatta Tribe of Texas
Will Micklin, 4th Vice President, Tlingit and Haida Indian Tribes of Alaska
Krishna P. Vallabhaneni, Designated Federal Officer
Swift, Williams, and Micklin are new members of the Committee, appointed earlier this year.
Pursuant to Section 3 of the Tribal General Welfare Exclusion Act of 2014, and in accordance with the provisions of the Federal Advisory Committee Act, the Treasury Tribal Advisory Committee was established on February 10, 2015. This seven-member committee advises the Secretary on significant matters related to the taxation of Indians, the training of IRS field agents, and the provisions of training and technical assistance to Native American financial officers. The membership has three appointees nominated by the Secretary of the Treasury, two appointed by the House Committee on Ways and Means, and two nominated by the Senate Committee on Finance.
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Remarks by Secretary of the Treasury Janet L. Yellen at Today’s Stakeholder Roundtable on Clean Power Generation
10/26/2022
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE
October 26, 2022
Contact: Treasury Public Affairs; Press@Treasury.gov
Remarks by Secretary of the Treasury Janet L. Yellen at Today’s Stakeholder Roundtable on Clean Power Generation
As prepared for delivery
Thank you all for joining me today. This is the second of six roundtables we are hosting on the Inflation Reduction Act’s climate and clean energy tax incentives.
I am looking forward to hearing from you about how we can accelerate the build-out of a clean energy economy.
As you know, the Inflation Reduction Act is the most significant investment in clean energy in our nation’s history. It puts President Biden’s climate goals within reach. At the same time, it creates jobs, saves households money, and strengthens our nation’s energy security.
To realize the promise of this law, we are working in tandem with all of you: utilities, project developers, manufacturers, organized labor, community organizations, and other critical actors who help supply the clean power our economy and our planet need.
As you all know, the Inflation Reduction Act provides the long-term clarity that clean energy developers have sought for years. We’d like to hear from you about how our guidance can help provide further certainty so that investments can move forward and our economy can realize the benefits as quickly as possible.
The law also includes several new provisions for clean energy tax incentives, including wage and apprenticeship bonuses, bonuses for investing in low-income communities and energy communities, bonuses for using domestic content, additional support for the clean energy value chain, and new ways to monetize credits.
We welcome your insights on how to promote an efficient and effective implementation of these and other aspects of the law.
I appreciate your partnership, and I’m grateful for all the work you’ve already done to accelerate the deployment of clean energy. We look forward to continued engagement with you all in the months ahead.
Thank you very much.
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