Congressman Chris Van Hollen of Maryland introduced legislation yesterday to create a Green Bank.
The bank would be a corporation wholly owned by the government that doles out cash to clean tech companies. To raise money for the bank, the government would issue green bonds. Here’s some more information on the proposal:
- Provide the Green Bank with an initial capitalisation of $10 billion through the issuance of Green Bonds by the Department of Treasury, with a maximum authorised limit of $50 billion in Green Bonds outstanding at any one time.
- Help the country transition to a clean energy economy and create jobs through the construction and operation of clean energy and energy efficiency projects.
- Help the country address other national objectives such as abating climate change, promoting energy independence and fostering long-term domestic manufacturing capacity in clean energy and energy efficiency technologies.
- Include robust spending safeguards and public disclosure requirements for operational efficacy, accountability and transparency.
The Green Bank is being lauded by renewable energy groups. They’ve been calling for such an agency for a while now. The Department of Energy has been slow to release funds that could help clean tech start ups. The theory is that an agency dedicated strictly to such a function would be a smoother running organisation.
However, we have our doubts about such a bank being implemented. There’s already $77.6 billion in the stimulus for clean tech. Is Congress ready to allocate another $10 billion?
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