With republicans objecting, the EPA has set $20 billion for green banks in three sections.
Today the Environmental Protection Agency launches two grant competitions aimed at financing clean-energy projects across the country, particularly in disadvantaged communities that have struggled to attract private investments. The grant competitions will dole out $20 billion under the Greenhouse Gas Reduction Fund, commonly known as a “green bank,”established by the Inflation Reduction Act. They come as the EPA races to stand up the green bank despite several obstacles, including depleted staffing levels and House Republicans intent on repealing the spending. Yet in a short interview yesterday, EPA Administrator Michael Regan projected optimism the agency would rise above these challenges. “We are very confident we have pulled together the staff to design and implement this program,” he said. “We have the staff on board; we have the expertise on board. And we feel very strongly that this is going to be successful.” Regan will formally announce the funding during an event in Baltimore today with Vice President Harris and Sens. Chris Van Hollen (D-Md.), Edward J. Markey (D-Mass.) and Thomas R. Carper (D-Del.). The senators helped draft and secure the green bank provisions in the climate law along with Rep. Debbie Dingell (D-Mich.).
washingtonp[ost.com
Little understood but very impactful.
The green bank is arguably one of the least understood and most impactful programs in the climate law. So before we delve into the details, let’s review how the program works. Imagine you have a promising idea for a new clean-energy business, but you can’t get a loan from an investor to turn your idea into a reality. Potential lenders tell you they’re hesitant to support a novel green technology or a business without a track record of success. This scenario is common, especially in low-income and minority communities that have historically struggled to attract private capital. The green bank aims to overcome this problem by making clean-energy investments seem less risky for potential investors.
Some states have already done similar programs that have been successful.
About half a dozen states have already established their own green banks without waiting for the EPA, and they’ve seen some notable successes:
- Since its creation in 2014, New York’s green bank has provided low-interest loans to a community solar project. The developers of the project were able to easily repay the loans on schedule, thereby establishing creditworthiness and making the project more attractive to other investors.
- In 2011, Connecticut established the nation’s first state-level green bank. Since then, the Connecticut Green Bank has leveraged $322.4 million in state dollars to attract $1.95 billion in private investment — a ratio of $7 in private dollars for every $1 in public money.
$20 billion into 3 competitions.
When designing America’s first national green bank, the EPA divided the $27 billion program into three grant competitions. Last month, the agency announced the first grant competition, the $7 billion Solar for All initiative, which will help finance community solar projects nationwide. (Such projects allow people who cannot install solar panels on their roofs, such as renters, to receive credits from nearby panels that lower their monthly utility bills.). The EPA today detailed plans for the other two grant competitions:
- The $14 billion National Clean Investment Fund will provide grants to two or three “national clean financing institutions,” which will partner with the private sector to finance tens of thousands of clean-energy projects, the EPA said. At least 40 percent of the funds will go to low-income and disadvantaged communities.
- The $6 billion Clean Communities Investment Accelerator will provide grants to two to seven “hub nonprofit organizations” that will provide funding and technical assistance to community lenders, the agency said. All of the funds will go to low-income and disadvantaged communities.
Re[publicans see the word green and object.
House Republicans have proposed rescinding nearly $7.8 billion from the green bank in the spending bill for fiscal 2024 affecting the EPA and Interior Department. “These reductions are necessary to right-size these agencies and take into account the excessive level of funding that these agencies received outside of the regular appropriations process,” Rep. Mike Simpson (R-Idaho), who chairs the House Appropriations Subcommittee on Interior, Environment and Related Agencies, said yesterday during a markup of the bill. Rep. Gary Palmer (R-Ala.) has leveled harsher and more direct criticism at the green bank, calling it a “taxpayer-funded $27 billion slush fund” that lacks accountability and oversight. Regan brushed aside the GOP barbs, saying they would not stop the agency from standing up the program. “Many of the things at EPA that we do are always of constant debate with our Republican colleagues,” he said. “What we do is we put our heads down and we continue to do the work.” Regan added that the green bank will spur investments in red districts whose elected representatives did not vote for the Inflation Reduction Act — a trend playing out with the climate law and the bipartisan infrastructure law. “We have $27 billion to design a very effective program that, by the way, will go in all districts — red, blue and independent districts,” he said. “This is about investing in America.”
Does not look like something we could apply for but some of you working with other NOLA groups might have ideas that would work and could apply for funding.
