Henry Litman, senior director and senior vice president of investment at the Coalition for Green Capital testified before the New Mexico Senate Conservation Committee in favor of SB169, legislation to create the Climate Investment Center– the state’s first green bank. Highlights from his testimony are included below:
Inflation Reduction Act’s Greenhouse Gas Reduction Fund
- The Inflation Reduction Act includes a $27 billion provision called the Greenhouse Gas Reduction Fund. This money is designated for the purpose of accelerating public- private investment to deploy technologies that reduce greenhouse gas emissions and air pollution.
- Equity is built into this provision, as at least $15 billion is designated to primarily benefit low-income or disadvantaged communities.
- SB169 presents an unprecedented opportunity to get New Mexico’s fair share of that $27b.
- The bill allocates $27b across three pots
- All $27b is designated to support investment in projects that reduce or avoid GHG emissions and other air pollutants; it may also be used to assist communities in their own efforts, which might include workforce development and job training.
- As it is currently designed, the CIC would be able to access funds from all three of these pots.
- SB169 is extremely well-aligned with the purpose of the Greenhouse Gas Reduction Fund. It sets New Mexico up well to receive the maximum amount of funds possible.
- SB169 is a gold-standard green bank bill due to its alignment with the IRA and strong governance provisions. If SB169 is passed, the Coalition for Green Capital will promote the bill to other states as a template for how their own green bank legislation might look.