Federal Green Bank Bill Introduced in Senate

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WASHINGTON – A bill introduced in the Senate Thursday by three New England Democrats would create a federal green bank in order to attract larger private investments in clean energy and energy efficient projects.

The Green Bank Act of 2016 (S. 3382), introduced by Connecticut Sens. Chris Murphy and Richard Blumenthal as well as Sheldon Whitehouse, D-R.I., would authorize the Treasury Department to issue up to $10 billion of green bonds to capitalize the bank. Treasury could also issue more bonds, but no more than $50 billion could be outstanding at one time.

The federal bank would provide loans and loan guarantees to regional, state and local green banks for clean energy projects.

It is a companion bill to H.R. 5802, the House legislation introduced by Rep. Chris Van Hollen, D-Md. and co-sponsored by seven other Democrats, in July. A spokesman for Murphy's office said Friday it is identical to Van Hollen's bill.

Blumenthal cited Connecticut's Clean Energy Finance and Investment Authority, the nation's first green bank launched in 2011, as a model for what could be done at the federal level. Rhode Island also established its own green bank, the Rhode Island Infrastructure Bank, in 2015.

"This common-sense measure will build on the successes of state green energy banks like Connecticut's to create a win-win for our country: strengthening America's economy and securing our clean energy future," Blumenthal said.

In a news release Thursday, the Senators said the Connecticut Green Bank has leveraged more than $800 million in clean energy business investments, created more than 3,000 jobs and reduced roughly 1.4 million tons of carbon dioxide emissions from its financed projects.

"Green banks are an example of how the government and private industry should work together – saving customers money and creating good jobs, all while helping the environment," said Murphy, who announced last month his plans to introduce the Senate companion bill.

Like the House bill, the Senate bill would establish a revolving fund for the bank, and no more than 80% of each clean energy project could be financed by the federal bank. To fund the energy efficient projects, which aim to reduce energy use to reach the same output level. Such projects include solar, wind, geothermal, biomass, hydropower and other clean energy sources.

The Senate bill was referred to the Senate Finance Committee Thursday, while Van Hollen's bill was referred to the House Energy and Commerce Committee in July.

Now in six states, green banks have also received support from Democratic presidential nominee Hillary Clinton, who has proposed a $25 billion infrastructure bank that would create an additional $225 billion in investment for their projects.

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