Washington, DC— Today, Representative Jim Himes (CT-04) introduced the National Green Bank Act. A National Green Bank would help establish and fund green banks across the country to make the investments necessary to pave the way to a sustainable future. These local green banks would be able to make financing in the form of direct financing support or credit enhancement for eligible energy efficiency, solar, wind, geothermal, biomass, hydropower, fuel cell, and alternative fuel vehicles and infrastructure projects, among others.
“If we are truly committed to the kind of innovation that will lead to a green energy future, we must have capital available to fund those investments,” said Himes. “Green banks are a proven way to bring security and stability to private investment in this sector. Expanding the program on the federal level will help leverage funds more efficiently and advance projects aimed at creating a cleaner, sustainable future.”
The bill requires the Department of the Treasury issue green bonds to provide the bank with an initial capitalization of $10 billion and additional capitalization, upon the bank’s request, of no more than $50 billion in aggregate at any one time. The bill also establishes a revolving Green Bank Establishment Fund in the Treasury Department to help set up green banks in states that don’t already have one.
The House Select Committee on the Climate Crisis explicitly referenced the National Green Bank Act of 2019 as a recommendation for helping finance climate change mitigation and climate-resilient infrastructure, and the New Democrat Coalition has endorsed the legislation.
In Connecticut, the Green Bank has mobilized nearly $2 billion of investment into Connecticut’s clean energy economy, supporting the creation of over 23,000 jobs and reducing the energy burden on over 55,000 families and businesses. In addition, it has generated nearly $100 million in individual income, corporate, and sales tax revenues to the State of Connecticut.
“The success we have seen in Connecticut, and across the nation in the states that have established green banks, is undeniable,” Continued Himes. “The National Green Bank Act will allow us to recreate this success on a broader scale, bringing the benefits to even more Americans.”
Senator Chris Murphy (D-CT) has introduced companion legislation in the Senate.
For more information, contact Patrick Malone at Patrick.malone@mail.house.gov. The full text of the bill can be found here.
###