The Connecticut Green Bank Success Story
The CGC was involved from start to finish in the passing of the nation's first Green Bank in Connecticut. With bi-partisan support, the Bank became law on June 7, 2011. Titled the Clean Energy Finance and Investment Authority (CEFIA), the new entity will function as a quasi-public corporation. The Bank's directors will have $48 million for their first year to provide low-interest loans to projects that will generate clean energy and make energy consumption more efficient. The Bank has been designed to operate without adding additional charges to electiricty bills or extra costs to tax payers. In fact, by jump-starting Connecticut's clean energy industry, the Bank will lower electricity bills, create jobs, and streghten the state's committment to an environmentally responsible future. Below is an outline of the Bank's funding and functions:
Funding
· $30 million annually from an existing surcharge on electricity bills · $18 million from Connecticut Green Loan Guaranty Fund · Allowance proceeds from Regional Greenhouse Gas Initiative · Any federal funds made available to finance state green banks · Qualification as a Community Development Financing Institution (CDFI) · Issuance of bonds · Contracts with private capital | Functions
· Develop standards to determine eligible projects · Finance up to 80% of a clean energy project · Finance up to 100% of an energy efficiency project · Provide guarantees on loans made by financial institutions for efficiency improvements in at least 15% of single family homes by 2020 · Help fund solar installations to increase residential solar capacity by 30 megawatts by the end of 2022 |
For further reading:
Connecticut Passes America's First Full "Green Bank," Proving Clean Energy is a Bipartisian Issue
Climate Progress
June 10, 2011
Connecticut Lawmakers Give Thumbs Up to a Green Bank, Bonds for Energy Retrofits
Environmental Finance
June 9, 2011
Connecticut to set up a Green Bank?
Environmental Finance
June 6, 2011
