8/7/2019 Need for Greater Clean Energy Financing - Green America

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Needs and Opportunities for Federal Financing of Clean Tech in the US

The Need for Greater Clean Energy Financing in the US

US Clean Energy Investments totaled $19 billion in 2009.

China invested $35 billion in 2009, and may invest $660 billion in clean energyover ten years.

The United States is 10th in the world in clean energy investments as a share ofnational economy.

The US lacks a centralized approach to financing as compared to other nations. Clean energy companies in the US report difficulties in accessing financing from

the private sector, and the financing that is offered carries burdensome debt/equityratios and loan terms.

Opportunities for the US Government

Establish a Green Bank: The Clean Energy Development Administration wouldact as an independently operated, publicly owned bank that could leverage $10billion into $100-200 billion in public and private lending to clean tech.

Clean Energy Victory Bonds: Could raise $5-10 billion that could be directedto clean tech projects and leveraged to provide $100-200 billion in lending (andcan work in conjunction with a Green Bank). The bonds could be issued toindividuals and corporations in denominations as low as $25, and could energizeAmericans around clean tech investing.

Expand Build America Bonds to Finance Clean Tech: Build America Bonds(BAB) provide a federal subsidy (equal to 35 percent of interest) to municipalbond authorities, and have proven successful in expanding capital improvements(at a time when tax exempt bonds are less attractive). A BAB dedicated to cleantech could assist municipalities nationwide in launching clean tech growth in theircommunity.

Accelerate Federal Loan Guarantees: There are billions of dollars in potentialloan guarantees available through DOE. Thus far the process has been slow.DOE has announced a streamlined process.

Expand Energy Efficiency and Conservation Block Grants: Block grants canallow municipalities to set up loan programs allowing local residents andbusinesses to adopt energy efficiency, solar, wind and other forms of clean tech,with extended repayment terms.

Federal Support for PACE Funds: The federal government can providesupport for PACE (Property Assessed Clean Energy) funds that are showingpromise nationwide, including through block grants. PACE funds allowhomeowners to borrow funds to install energy efficiency or solar power, and thenrepay the loan over the long term through a special assessment on the property.

8/7/2019 Need for Greater Clean Energy Financing - Green America

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Comparison of Federal Clean Energy Financing Models

Model No

Federal

Tax

Dollars

Used

Open to

Individual

Investors

Open to

Institutional

Investors

Assist

Municipal

ities

Finances

Start-ups

and

Smaller

Companies

Finances

Existing

and Larger

Companies

Green Bank CleanEnergyVictoryBonds

BuildAmericaBonds

LoanGuarantees

BlockGrants

* *FederalSupport forPACE

* *Clean Energy Victory Bonds are unique in offering an investment opportunity to both individualand institutional investors, and providing financing and assistance to a broad range of recipients,including municipalities, start-up corporations, small companies, and existing and large-capcompanies. Clean Energy Victory Bonds would also not use any federal tax dollars, investmentwould be entirely voluntary, and administration and promotion costs would be covered by fundsraised through the bond issue.

* These models could indirectly support Start-ups, smaller companies, existing, and larger

companies.