The Clean Energy Future Blog

By Coalition for Green Capital

Washington, D.C.— In response to the landmark climate legislation signed into law this week, the Coalition for Green Banks (CGC) issued the following statement:

“We’re thrilled that the creation of two new green banks was included in the historic climate legislation passed by the Illinois state legislature and signed by Governor Pritzker,” said Jill Bunting, Deputy Director of the CGC. “Both the Climate Bank and the Clean Energy Jobs and Justice Fund will help fund clean energy projects throughout the state while surging jobs and much needed investment to frontline communities. We applaud state leaders for their work on this landmark initiative and congratulate them on joining over a dozen other states in leveraging a green bank model to spur clean energy infrastructure. As more states join the network of green banks, funding for a national green bank— as currently included in the budget reconciliation package— will be critical for the success of state green banks like these.”

Background

With enactment of this bill, Illinois joins more than a dozen states including Florida, New York and Connecticut that use publicly funded green banks to spur investment for renewables, energy efficiency and other projects, especially in communities that have been underrepresented in the clean energy economy.

Legislation signed into law this week established two financing mechanisms modeled after green banks. The Clean Energy Jobs and Justice Fund, will focus on equitable lending and supporting clean energy projects in low income and marginalized communities. The Illinois Finance Authority Climate Bank will leverage public-private partnerships to fund clean energy projects across the state.

The creation of a national green bank, the Clean Energy and Sustainability Accelerator, is currently under consideration by Congress as part of the budget reconciliation package and was approved this week by the House Committee on Energy and Commerce.

By Coalition for Green Capital

Washington, DC– The Coalition for Green Capital issued the following statement after the House Committee on Energy and Commerce completed its markup of the budget resolution; the legislative language is expected to permit the funding of a federal green bank, or Clean Energy and Sustainability Accelerator:

“We are one step closer to the Clean Energy and Sustainability Accelerator becoming a reality,” said Reed Hundt, CEO of the Coalition for Green Capital. “The Accelerator is widely recognized as a critical way to drive our transition to clean energy. The House has passed the Accelerator three times and with bipartisan support, and it is backed by climate and social justice advocates, governors on the front lines of the climate crisis and nearly 150 mayors from across the country. The Accelerator will leverage public-private partnerships to direct clean energy investments at disadvantaged communities, workforces, children afflicted by environmental harm, and consumers burdened by high costs of the existing energy platform.”

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank. Earlier this month, 10 governors on the front lines of the climate crisis called on Congress to pass the Clean Energy & Sustainability Accelerator, because doing so would be one of “the most impactful actions to protect our climate” and environmental groups echoed that message.

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).
 

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By Coalition for Green Capital

Washington, D.C.– In a new letter to Congress, a coalition of 20 organizations called on Congress to pass the Clean Energy and Sustainability Accelerator and “make transformational investments in our nation’s infrastructure with the Build Back Better Act.” The Accelerator was included in the budget resolution passed by both the House and Senate last month.

“We’re pleased to see this coalition of leading environmental and public health groups recognize the importance of the Accelerator, which will generate jobs and bring critical investment to disadvantaged communities across the country,” said Reed Hundt, CEO of the Coalition for Green Capital.  

In their letter, the coalition said, “The climate investments included in the Build Back Better Act put us on a clear path to cut climate pollution in half by 2030 by creating new clean energy tax incentives, transforming our power sector to achieve 100% clean electricity and investing in communities too often left behind. Anything less fails the Climate Test that science and this moment demand. If we don’t act now, communities will face even more devastating and extreme droughts, fires, hurricanes, flooding and storms.”

The groups called for Congress to fund $27 billion for the Federal Green Bank, naming the Accelerator as a key component to directing clean energy investments to communities that have long borne the brunt of fossil fuel pollution.

The letter was signed by Black Millennials for Flint, the Center for American Progress, the CLEO Institute, the Climate Action Campaign, Climate Power, the Climate Reality Project, Earthjustice, the Environmental Defense Fund, Evergreen Action, Generation Progress, Interfaith Power & Light, the League of Conservation Voters, the National Audubon Society, the National Hispanic Medical Association, the National Wildlife Federation, the Natural Resources Defense Council, NextGen America, Poder Latinx, the Sierra Club, and the Wilderness Society.

Click here to read the letter.

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank. Last week, 10 governors on the front lines of the climate crisis called on Congress to pass the Clean Energy & Sustainability Accelerator, because doing so would be one of “the most impactful actions to protect our climate.”

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).

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By Coalition for Green Capital

WASHINGTON, D.C.– In a new letter to congressional leadership, ten governors on the front lines of the climate crisis are calling on Congress to pass the Clean Energy & Sustainability Accelerator, or federal green bank, into law, because doing so would be one of “the most impactful actions to protect our climate.” The Accelerator was included in the budget resolution passed by the Senate and House last month. The letter was signed by Governors Gavin Newsom (CA); Ned Lamont (CT); David Ige (HI); Janet Mills (ME); Steve Sisolak (NV); Kathy Hochul (NY); Kate Brown (OR); Tom Wolf (PA); Dan McKee (RI); and Jay Inslee (WA).

“Each of the elements of the Build Back Better Agenda are worthy of inclusion in an infrastructure package,” wrote the governors, “but as Governors of states on the front line of the climate crisis, we place particular emphasis that the combined package includes the most impactful actions to protect our climate.”

The governors are urging Congress to “establish an accelerator to mobilize private investment into distributed energy resources; retrofits of residential, commercial, and municipal buildings; and clean transportation.” 

They referenced extreme climate events currently impacting much of the country and the recent Intergovernmental Panel on Climate Change report in calling for congressional action.

“Climate change is intensifying the wildfires that burn in the West, hurricanes that threaten the East, and extreme heat that endangers people and animals throughout the country. Now is the time for bold climate action,” they wrote. “The most recent Intergovernmental Panel on Climate Change report details what we already know – the window for preventing irreversible climate consequences is closing and we need to act quickly and comprehensively.”

“We thank these governors representing nearly 30% of the American population for reinforcing the urgency of this moment and recognizing the unique role the Accelerator will play in moving quickly and effectively to bring green investments to frontline communities,” said Reed Hundt, CEO of the Coalition for Green Capital. “State and local leaders are facing the consequences of climate change head on and they know that creating a national green bank will create millions of jobs, fuel our economic recovery and leverage public-private partnerships to invest in clean energy projects.”

Read the letter here.

Background

President Biden included the Clean Energy Accelerator, a national green bank that would inject funding into state green banks, as a key climate provision in the American Jobs Plan. The U.S. House passed the bipartisan Accelerator as part of the INVEST in America Act (H.R. 3684), marking the third time the Accelerator has been passed by the chamber. In a July letter to congressional leaders urging action on climate infrastructure, more than 140 mayors — a group known as “Climate Mayors” — called for the creation of a national green bank.

The Coalition for Green Capital has been the advocate of green bank creation since its founding in 2010. Currently there are 22 green banks in 16 states and the District and 21 more green banks in the pipeline. Most recently green banks were created in Maine and Colorado. Legislation to fund them at necessary scale is pending in the House (H.R. 806, a bipartisan Clean Energy & Sustainability Accelerator introduced by Rep. Debbie Dingell (D-MI), Rep. Don Young (R-AK) and Rep. Brian Fitzpatrick (R-PA) and (S. 283, creating a National Climate Bank, introduced by Massachusetts Senator Ed Markey and Maryland Senator Chris Van Hollen).

ABOUT COALITION FOR GREEN CAPITAL

The Coalition for Green Capital (@CGreenCapital) is a non-profit with a mission to halt climate change by accelerating investment in clean energy technologies and by advocating for, creating and implementing green bank institutions. Green banks are a proven finance model that uses public and philanthropic funds to mobilize private investment in renewable energy, energy efficiency and other decarbonization technologies. For over a decade, the Coalition for Green Capital has led the Green Bank movement, working at the federal, state and local level in the U.S. and in countries around the world. For more information, visit: https://coalitionforgreencapital.com/.

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By Coalition for Green Capital

WASHINGTON, DC– The Coalition for Green Capital (CGC) joined partners today in launching the National EV Charging Initiative, a coalition to spur construction of the nation’s electric-vehicle charging network. The coalition includes 24 national and regional organizations representing automakers, workers, utilities, suppliers, investors and public interest advocates.

“A strong national electric vehicle charging network is a critical component in supporting our investments in electric vehicles as well as our nation’s transition to clean energy,” said Jill Bunting, Deputy Director of the Coalition for Green Capital. “Investment in this network will not only support our climate goals but will also create good jobs, address racial inequities by expanding access to electric vehicles and strengthen public/private partnerships. We’re proud to stand with our partners today in launching the National EV Charging Initiative and look forward to supporting the coalition’s work.”

In a joint memorandum of understanding, CGC and coalition partners pledged to collaborate with all levels of government to build a national charging network as well as advocate to leverage funding and other forms of support from the public sector.

Members of the coalition include:
Alliance for Transportation Electrification (ATE)
Alliance for Automotive Innovation
California Electric Transportation Coalition (CalETC)
CALSTART
Ceres
ChargEVC
Coalition for Green Capital (CGC)
Commissioner Maria Bocanegra (Illinois Commerce Commissioner and Chair of NARUC’s Electric Vehicles Working Group)
Edison Electric Institute (EEI)
Electric Drive Transportation Association (EDTA)
Electric Vehicle Charging Association (EVCA)
Electrification Coalition
Environmental Defense Fund (EDF)
EVHybridNoire
Forth
The Greenlining Institute
GreenLatinos
International Brotherhood of Electrical Workers (IBEW)
Natural Resources Defense Council (NRDC)
National Association of State Energy Officials (NASEO)
Plug In America
Sierra Club
Veloz
Zero Emission Transportation Association (ZETA)

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By Coalition for Green Capital

Proposed Legislation

The House has enacted a bipartisan bill to fund a national Clean Energy Accelerator with $100 billion. The Senate has at least three bills on file to accomplish this goal and the President has called for $27 billion of funding. 

The Clean Energy Accelerator was included in the budget resolution language released August 9, 2021. 

What is the Clean Energy Accelerator?

The Clean Energy Accelerator is a nonpartisan, government-funded, financial nonprofit that resembles other long-standing institutions such as the Corporation for Public Broadcasting and the World Bank. The Clean Energy Accelerator has been designed to catalyze public-private investment in clean power infrastructure by funding green banks in every state that will invest in local projects, create jobs, and lower energy costs. The Clean Energy Accelerator will position the U.S. to lead in clean energy across the world. 

All green banks operate at the frontier of private sector investing, using flexible forms of public finance to attract private sector funding to clean power projects that are not commercially supported at scale for reasons such as size or novelty. In addition, green banks address problems of collective action (providing an anchor tenant to multi-player transactions) or regulatory obstacles (securitizing commitments to carbon power facilities). 

There are currently green banks in 16 states and Washington, D.C., and in 21 more states are interested in creating one. The Accelerator would be the first national climate bank in the United States. Similar banks already exist in various countries, including the United Kingdom, Rwanda, South Africa, and others. 

A Just Transition

The proposed legislation in the House and Senate addresses the imperative of achieving a just transition, meaning a switch from carbon to clean power that improves health, increases job opportunity, and delivers tangible benefits for lower to middle income households. At least 40% of all investments by the Accelerator and its green bank network would have to go toward these equitable ends.

The Legislation’s Impact

If funded, the Clean Energy Accelerator would capitalize green banks in every state. At the national level it would conduct securitizations, pursue standardization of forms and processes for financing clean power projects, and address projects at a regional or national scale. Both the national and state green banks would focus on problems that slow or make inequitable the transition from carbon to clean power as the fundamental energy platform for the United States.

In the last decade state and local green banks have successfully attracted private funds into whole home electrification, renewable power generation, grid upgrades, and resiliency measures. Their investments have created jobs, enhanced energy independence, lowered the cost of energy for consumers and local businesses, and earned money for private investors. In New York and Connecticut, green banks have aggregated and sold their investments to attract new funds for re-investment. These states’ green banks have shown that the Accelerator’s investments are profitable. 

For this reason, it is predicted that a one-time deposit of federal money will lead over a decade to an eightfold increase in private sector investment into components of the clean power platform that otherwise would not have been funded so quickly, or perhaps at all.