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Industry Coalition Hails U.S. Congress Green Bank Act

Posted on: Tuesday, 24 March 2009, 16:20 CDT

Green Bank Financing of Clean Energy and Efficiency Projects Will Jump-Start New Era of Private Investment in Critical Clean Energy Infrastructure

WASHINGTON, March 24 /PRNewswire/ -- The Coalition for Green Bank applauds the introduction today by Congressman Chris Van Hollen of a bill that establishes the Green Bank to catalyze the financing of clean energy projects and energy efficiency projects. The Coalition for Green Bank (CGB) is a consortium of energy industry leaders including renewable resource developers, original equipment manufacturers, investors, financial advisors and consultants dedicated to unleashing a new era of private investment in the green energy for clean and sustainable energy and jobs, and economic development.

The proposed Green Bank will be an independent, tax-exempt, wholly owned corporation of the United States, with the exclusive mission of providing a comprehensive range of financing support to qualified clean energy and energy efficiency projects in the U.S. The Act would provide the Green Bank with an initial capitalization of $10 billion through the issuance of Green Bonds by the Department of Treasury, with a maximum authorized limit of $50 billion. The legislation includes spending safeguards and public disclosure requirements to ensure that the Green Bank operates at the highest levels of efficacy, accountability and transparency required by taxpayers for their financial support.

According to the CGB, this legislation is a critical stimulus for the US transition to a cleaner energy future. Development of clean, sustainable, renewable energy, critical to US energy independence and environmental and economic health has been throttled by current conditions in the economic, financial and commodity markets. The proposed Green Bank provides the capability to jump-start renewable energy development in the U.S. and move the nation closer to energy independence.

Reed Hundt, co-chair of the Coalition for Green Bank, said, "Many congratulations to Congressman Van Hollen for his leadership in introducing the bill creating the Green Bank. More than ever, America needs a new, specialized, well-capitalized bank to help private investors build a green future for our economy, and this proposal is a ray of sunshine through the clouds that have been covering the prospects for alternative energy."

CGB estimates that the Green Bank initial capitalization of $10 billion to fund upwards of $50 billion can result in 15GW of renewable energy, reducing annual energy costs by $22.5 billion. The initiative is projected to cut carbon emissions by 29.6 million tons, and increase reliability of the electric grid all while reducing reliance on foreign or fossil fuels. The legislation will facilitate private investment in the green economy, creating up to 1.5 million new and permanent jobs, including a large number in the development and operation of renewable generation projects, component factories, transmission and distribution facilities, smart grid technologies, energy efficiency, and hardware and software components used in each of these types of projects.

"Green Bank is a critical step towards facilitating green power development while meeting the primary objectives of CO2 reduction and economic stimulus," stated Todd Filsinger, CGB co-chair and Global Head of PA Consulting Group's Energy Capital Markets, "The environmental benefits are unprecedented and have the potential to drive US emissions to 1990 levels by 2020."

The Green Bank Act of 2009 authorizes the bank to issue "green bonds" backed by the U.S. government to support financing for qualified energy and energy efficiency projects such as wind farms and solar installations, transmission lines, manufacturing plants, and energy efficiency programs. The Green Bank is intended to operate in concert with the private sector to foster increased access to renewable power. The Act will also facilitate financing of long-term clean energy purchasing by governmental and non-governmental not-for-profit entities to ensure wide distribution of clean energy throughout the country.

According to T. Boone Pickens, "An alternative energy bank is a creative and needed way to jump start the private sector's involvement in renewable and other alternative energy projects. This money will be paid back and, at the same time, be a major down payment on our efforts to reduce our costly and dangerous dependence on foreign oil."

The Green Bank recognizes transmission infrastructure is critical to the national program of green, renewable sustainable energy," commented Phillip Genneralli, President of Cavallo Energy. "Enhanced transmission capability and reliability are fundamentally essential to moving green energy from the best, natural resources found across our country to the population centers that demand and deserve clean energy supplies."

The US possesses abundant solar, wind and geothermal resources, as well as tremendous opportunities to use energy much more efficiently, however, getting renewable resources and efficiency projects to market can be challenging in today's credit markets. The Green Bank Act of 2009 has received significant interest from states, utilities, financial institutions, and other private companies who have "finance-ready" renewable energy, transmission and distribution, and energy efficiency projects that remain in limbo.

The legislation will make it easier to invest in the green economy, which in turn will achieve key national objectives to achieve energy independence from foreign energy sources; abate climate change by increasing zero or low carbon electricity generation and transportation capabilities; realize energy efficiency potential in existing infrastructure; facilitate the transition from a carbon-based economy to a clean energy economy; create jobs; and foster long-term domestic manufacturing capacity in the clean energy and energy efficiency industries.

"The Green Bank will serve a critical role in supplementing financing available in the private sector and assisting the development of certain private sector financing markets," Ken Marks -Managing Director at Morgan Stanley.

"The Green Bank, because it promotes long term investment by the private sector, is the missing link in the efforts of Congress and the Obama Administration to jump start the green energy economy," Harrison Wellford, Managing Director, Terrawell Energy.

About the Coalition for Green Bank

The Coalition for Green Bank is a consortium of leaders in energy development enterprises including renewable resource developers, original equipment manufacturers, investors, financial advisors and consultants dedicated to the stimulus of green energy assets for clean and sustainable energy and jobs, and economic development. The CGB is proud to have the support of the Pickens Plan, Mesa Power, Natural Resources Defense Council, General Electric, Cavallo Energy, US Department of Energy, Florida Power & Light, Bright Source Energy, RES-Americas, American Wind Energy Association and many more. The GBC comprises co-chairs Todd Filsinger (PA Consulting Group) and Reed Hundt, steering committee members Monty Humble (Mesa Power Group, LLC), Phillip P. Gennarelli (Cavallo Energy), Kenneth Marks ( Morgan Stanley), and coalition members Steve Taub (GE Energy Financial Services), Michael Bruce (Manifest Energy Group), Jason Scott (EKO Asset Management Partners), Thomas R Rosen, (Green Amperage Partners, LLC), Dave Chen (Equilibrium Capital Group), Mitchell Dong (Mohave Sun Power LLC), Tom Casey (CURRENT Group, LLC), Alan H. Fleischmann, Bruce R. Thompson (US Mainstream Renewable Power Inc.), Steve Boyd (Principal, Boyd Strategies), Michael Gergen (Latham & Watkins LLP), Harrison Wellford (Terrawell Energy), William Gleason (Chinook Energy), Michael Peck (MAPA Group), Susan Leeds (Natural Resources Defense Council), and Harold Borden (Cavallo/Cross Hudson).

CONTACTS: Irina Dayton 720 566-9927 direct / 303 478-6381 cell Jane Rubinstein 212 843-8287 direct / 516 993-0708 cell

SOURCE The Coalition for Green Bank

Source: PR Newswire

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