MAY 2019

GREEN BANKS IN THE UNITED STATES:

2018 Annual Industry Report

www.coalitionforgreencapital.com
2  |  Green Banks in the United States

AMERICAN GREEN BANK CONSORTIUM

FOUNDATION SUPPORT

About the American Green Bank Consortium About the Coalition for Green Capital

The American Green Bank Consortium is a project of CGC. The Coalition for Green Capital (CGC) works to establish
Created in 2018, the Consortium is a membership organi- Green Banks on the state, federal, and international levels
zation enabling Green Banks, capital providers, developers by conducting in-depth analyses, leading fundraising and
and other clean energy supporters to work together. business planning efforts, and providing specialized con-
sulting services. With CGC’s leadership and technical sup-
The Consortium creates value for members through
port, Connecticut created the first state Green Bank in the
services including facilitating the sharing of knowledge
U.S. with near unanimous bipartisan support. CGC then
among Green Banks and working with capital providers
followed that with work in New York, Hawaii, C ­ alifornia,
to design blended clean energy investment vehicles that
Maryland and many other states supporting Green Bank
work at scale across the entire network of Green Banks.
design and implementation.
For more information visit greenbankconsortium.org.
CGC is working internationally on a number of Green
Bank projects, including in South Africa where CGC
worked with local stakeholders to design, raise capital
and ultimately launch the first Green Bank in emerging
markets—the Climate Finance Facility—and supported by
the Green Climate Fund. CGC works on a number of other
Green Bank scoping and design projects in Latin America,
Africa and Southeast Asia.
3  |  Green Banks in the United States

Contents

Introduction............................................................................................................................................. 4

What is a Green Bank?............................................................................................................................ 5

Green Banks at a Glance in 2018 .......................................................................................................... 6

Organizational Trends Across Green Banks......................................................................................... 7

Technology Trends Across Green Banks................................................................................................ 9

Spotlight on 2018 Green Bank Activity.............................................................................................. 10

Climate Access Fund...................................................................................................................... 10

Colorado Clean Energy Fund......................................................................................................... 10
Connecticut Green Bank................................................................................................................ 10
DC Green Bank............................................................................................................................... 11
Florida Solar & Energy Fund.......................................................................................................... 11
Hawaii GEMS.................................................................................................................................. 11
Inclusive Prosperity Capital........................................................................................................... 11
Maryland Clean Energy Center..................................................................................................... 11
Michigan Saves.............................................................................................................................. 12
Montgomery County Green Bank.................................................................................................. 12
Nevada Clean Energy Fund............................................................................................................ 12
New York City Energy Efficiency Fund.......................................................................................... 12
New York Green Bank..................................................................................................................... 12
Rhode Island Infrastructure Bank................................................................................................. 13

Formation of American Green Bank Consortium.............................................................................. 13

Look Ahead at Green Bank Activity in 2019....................................................................................... 14

Appendix: Methodology....................................................................................................................... 14
4  |  Green Banks in the United States

Introduction

T hough the Green Bank concept was originally

proposed in 2009 and has been put into practice
from Hawaii to Rhode Island since then, this
report is the inaugural Green Bank Annual Industry Report.
The timing of this report reflects both the scale of what
In this report, you’ll read about those dollars and cents
through descriptions of new transactions undertaken
by Green Banks across the country. You will learn the
investment trends travelling across Green Bank financing
and new technologies being deployed. You will also see
has come before, and the opportunity ahead. The need for how new innovations in the Green Bank business model
low-cost clean energy solutions to address climate change are leading to the growth of new lean, origination-
has never been more pressing, and Green Banks are poised oriented Green Banks that can draw on capital, products,
to respond as more are formed, grow, and innovate across and know-how from their Green Bank partners. And
the US. finally, you’ll learn about the launch of the American
Green Bank Consortium. This is a potent new network
Now with nearly a decade of track-record, the Green that is primed to drive investment through commonly
Bank value proposition is clear. Green Banks drive clean accessible capital and shared products, and to also for the
energy investment and reduce carbon emissions. They use first time harness the collective voice of Green Banks and
catalytic and innovative structures that crowd in capital their allies in finance, business, and the environmental
from multiple sources to produce something that is greater movement. The Consortium aims to build a community of
than the Green Bank could do on its own. By using public practice that is capable of deploying hundreds of billions
and philanthropic funds responsibly and through market- of dollars of clean energy investment into all corners of
based tools, Green Banks are driving multiples of their the United States.
own investment.
Climate change has never been so firmly at the center of
But the value of a Green Bank goes beyond finance. the national policy and political debate. Communities
In every location where they operate, they serve as a across the US are looking for cost-effective solutions
convener and a voice for smart climate and energy policies to address climate change. Philanthropy is looking to
that favor market expansion, access, and environmental drive impact with their dollars, both through grants and
justice. Green Banks are pillars of clean energy leadership, program-related investment. Private capital providers
demonstrating a core benefit of the Green Bank model recognize the nearly boundless investment opportunity
– the value of institutions. If it’s nobody’s job to solve of clean energy finance, and governments want to align
difficult finance challenges, or to muster collective action themselves with solutions that create jobs and lower
to influence policy in support of clean energy market energy costs. Green Banks hit the mark, which is why the
expansion, then how will those critical activities get expansion of Green Bank activity, at the local, state and
done? That is why Green Banks are so valuable for their federal level, should be anticipated in the years to come.
communities, and that value goes beyond the dollars and
cents of investment.
This Annual Industry Report is a publication of the
American Green Bank Consortium, a project of the Coalition
for Green Capital. To join the Consortium as either a
member or a supporter, visit www.greenbankconsortium.org
for more information.
5  |  Green Banks in the United States

What is a Green Bank?

G reen Banks are finance entities built to connect

clean energy projects with capital in target
markets. They blend commercial, public, and
philanthropic capital to deliver catalytic finance solutions
capable of supporting the implementation of clean energy
It all began with CEDA

the Clean Energy Deployment Administration.

Though the first iteration of a federal Green
technology that otherwise could not be built. Green Banks
possess local expertise on market conditions, the policy Bank, introduced in 2009, only passed the House
landscape, finance actors, and development partners, of ­Representatives, it portended a bright future.
and leverage that expertise to support investment. Green Green Banks soon appeared on the state and local
Banks are not depository institutions. level in Michigan, Connecticut, New York, Rhode
The goal of this greater, additive investment is to reduce Island, Hawaii, Florida, Maryland, DC, Nevada, and
GHG emissions, though the associated benefits are ­Colorado. And over this time the model evolved,
numerous. By using market-based solutions, Green Banks with public and quasi-public institutions, tapping
are only in the business of delivering clean energy that into public, private, and philanthropic capital where
lowers costs for end-users. As a result, Green Banks also
it was available. The kinds of investments and
lower energy costs and provide low-to-moderate income
households access to the clean energy transition while target markets changed, too, always moving to the
lowering their energy burden. Green Banks also stimulate next frontier of where their innovative capital was
job creation, as there is no way to install a solar panel or needed. Today there are 14 Green Banks, with more
upgrade the efficiency of a building without putting labor in development.
on the ground in the local market.
6  |  Green Banks in the United States

Green Banks at a Glance in 2018

T he year 2018 proved important for American

Green Banks. Green Banks in the US caused $676
million in total investment, pushing total Green
Bank investment caused over $3 billion since 2011.
While providing economic and environmental benefits,
Green Banks have served as groundbreaking financial
tools to leverage private investment and catalyze greater
market change.

Cumulative Green Bank Impact through December 2018

Investment $ 3.67 b

Private Investment to Public Investment Ratio 3.4 to 1

Investment Caused by Green Banks

$4,000,000,000

$3,000,000,000

$2,000,000,000

$1,000,000,000

$0
2011 2012 2013 2014 2015 2016 2017 2018
Investment by Year Cumulative Investment
7  |  Green Banks in the United States

Organizational Trends Across Green Banks

F or many years, Green Banks were presented

and created as government entities funded with
public dollars. Formed either by legislation or
executive action or regulation, they were dependent on
government for their creation, funding, and continued
express purpose of deploying the Connecticut products
and know-how in more states. Not only does this mean
ready-made solutions are available for new Green Banks
to use in their markets, but it also means IPC can op-
erate at a larger scale in a more cost-effective manner.
existence. By 2017, it became clear that these kinds of Part of this expansion includes a new partnership with
government dependencies were in many cases actually Michigan Saves, as they work with IPC to standardize
a barrier to Green Bank growth. Government support and deploy nationally their loan loss reserve product
is essential, but government dependency could in some to support greater lending for residential upgrades
cases slow formation or limit operating flexibility. And through a network of local lenders.
as public coffers tightened around the country, there was
• The New York City Energy Efficiency Corporation (NY-
very rarely a pot of public funds ready and waiting to
CEEC), the first local and non-profit Green Bank, shed
capitalize a Green Bank.
its five-borough boundary and expanded its territory
Simultaneously, more mature Green Banks recognized an up and down the east coast. NYCEEC saw an opportu-
opportunity to increase the efficiency of the whole Green nity to support investment in more geographies while
Bank ecosystem. Rather than reinvent the wheel and place also building the scale it needs to operate at greater
redundant operating capacity in each and every Green efficiency.
Bank across the country, Green Banks are working togeth-
• The New York Green Bank set in motion a plan to raise
er to build new capacity where needed while leveraging
at $1 billion of private capital to finance clean energy
existing expertise. This could allow for more cost-effective
outside of New York State. The goal is to finance clean
Green Bank operation and expansion. And, importantly, a
energy deployment just as it does today in New York,
Green Bank ecosystem more oriented to collaboration and
with an eye towards capital market transformation,
joint activity was one better positioned to raise capital
but to do so across the country. This capital raise is in
at scale, from multiple sources, that could finance clean
development and will bring capital at a unique scale to
energy projects with and through the entire network of
the Green Bank ecosystem.
Green Banks.
• And finally, CGC, in partnership with Green Banks
These developments led to a rise in non-profit Green
across the country and with its philanthropic sup-
Banks formed in collaboration with government. These
porters, has launched the new American Green Bank
lean, origination-focused Green Banks are on the front
Consortium to act as the network, organizer, and con-
lines in markets around the country, working with
nective tissue of the Green Bank community that was
­developers, investors and local actors to identify the pipe-
previously lacking. The new Consortium is discussed in
line of projects to finance. If there is local public funding
more detail later in this report.
all the better. But if not, these Green Banks are positioned
to tap into new centralized pools of capital. And through Taken together, these developments will take Green Banks
better coordination, multiple Green Banks can use in the US in a new direction. Lean, local and origina-
­standardized or shared products to make aggregation and tion focused Green Banks need not hold out hope only
scaled investment even easier. for large local public investment. Rather, philanthropic
support coupled with commercial capital and the benefits
These developments have manifested in four major
of shared activity through a network will allow Green
­additions to the Green Bank landscape:
Banks to be formed and begin investment more rapidly.
• The Connecticut Green Bank launched a non-profit More detail on the two major elements of this shift can be
spin-out, Inclusive Prosperity Capital (IPC), for the found below.
8  |  Green Banks in the United States

• Start-up activities shift: Incorporation of an inde- Green Banks are going to be a key element of financing
pendent nonprofit that does not require legislation the transition to a clean energy economy, and as the ­
or even government funding allows for a much more political urgency behind this shift ramps up, Green
rapid deployment of Green Banks across the US. It is Banks will need to be prepared to handle capital at a
critical that government remains closely connected to much larger scale than envisioned previously.
the project, whether through governance (board seats),
In practice, this means that Green Banks need to develop
financial contributions (operational funds that can
the capability to access financing from public or private
be committed), or public relations (press assistance).
capital sources from around the globe and also need to be
­However, it is possible to keep government involve-
prepared to work with renewable energy project develop-
ment to this level without having to rely on some of
ers through all stages of the project development process,
the traditional hallmarks of Green Bank creation, such
but especially in early stage development. The Nevada
as passing legislation, that necessarily require major
Clean Energy Fund (NCEF) is an example of this type of
delays for start-up activities.
business model shift, and the following excerpt is taken
• Business model shift: While moving away from from the organization’s draft business plan: “To fulfill its
­intensive government involvement in start-up process- mission, the NCEF will build the capabilities to identify,
es, Green Bank development efforts have simultane- develop, and finance clean energy projects in Nevada.
ously pursued a shift in the core Green Bank business The NCEF’s focus will be on connecting projects with the
model. Previously, Green Banks had been more orient- appropriate sources of debt capital. The NCEF will provide
ed toward taking advantage of public capital that was value to the clean energy market by aggregating flexi-
designated for their use by a government or philan- ble sources of capital and investing resources to develop
thropic organization and using this capital to achieve Nevada projects to the point where they are financeable.
maximum leverage on public investment. As the model While the NCEF will not have financing capital on its bal-
has evolved, the focus has shifted to tapping into larger ance sheets at its inception the NCEF will be structured to
pools of capital (either public or private) than might accept future capital from public, private, and foundation
otherwise be available within the Green Bank’s limited sources.” This represents a shift because it shifts the focus
jurisdiction. The organizing principle behind this shift away from competing for limited local public and non-
is that Green Banks need to be built in a way that allow profit capital and focuses the organization on being able to
them to access capital at a scale beyond solely what perform its primary role of connecting projects in Nevada
is available on the state or local level. Stated bluntly, with capital from anywhere in the country (or world).

Local Green Bank Can Tap Available …But Can Also Tap National
Limited Local Resources… Resources From Other Green
Banks & Partners
Local
Government
Foundations
Loan
E.g. PRI for E.g. Grants Capital
GB Loan Funds for Ops., “Equity”

Non-Profit Proven
Green Bank Products

National
Philanthropic
Clean Energy Projects Funds
9  |  Green Banks in the United States

Technology Trends Across Green Banks

G reen Banks are in the business of providing

financing, directly or indirectly, to clean energy
projects. As new clean energy technologies are
introduced and adopted by market participants, the
market for financing these clean energy technologies
RESILIENCE MEASURES
Green Banks around the US are beginning to finance resil-
ience measures. The Florida Solar Energy Loan Fund now
offers financing for residential sustainable home renova-
is often underdeveloped and illiquid. Some firms can tions, with measures including hurricane shutters, impact
address this need by financing the projects on their own windows and doors, roof repairs and replacements, and
balance sheets, however this option does not allow the other home resilience measures. The Rhode Island Infra-
technology to reach the scale necessary to achieve broad- structure Bank has hired a Director of Stormwater and
scale commercialization of the technology in question. Resiliency and recently launched the Municipal Resilience
Green Banks can seize these opportunities by directly or Program, a pilot that aims to equip municipalities with the
indirectly offering financing for these specific types of tools and funds necessary to address the effects of climate
relatively early-stage technologies. This section will look change in Rhode Island.
at a few examples of technologies where financing markets
Financing of renewable energy projects happens often
are relatively illiquid at the moment, and how Green
because of a common denominator across technologies:
Banks can step into these markets.
a relatively predictable recurring cash flow resulting
from the project itself. The challenge for Green Banks in
ENERGY STORAGE financing resilience measures is often the lack of reliable
revenue streams associated with the projects involved.
In January of 2018, New York Governor Andrew Cuomo
Green Banks can become involved with resilience projects
called for a commitment of at least $200 million in energy
easily enough by offering to finance the generation with-
storage investment to be made through NY Green Bank.
in a microgrid or a similar energy-related proposal, but
Shortly thereafter, the New York Green Bank released a
financing resilience measures without predictable cash
Request for Information focused on increasing dialogue
flows associated with them is a next frontier for Green
with energy storage developers and other market partic-
Banks in the US.
ipants regarding ways in which NY Green Bank could be
helpful in financing energy storage projects by addressing Green Banks can play a familiar role in the financing of
market barriers and financing gaps that might otherwise resilience projects that have cash flows associated with
impede project development. In October 2018, NY Green them. The cleanest example of this type of Green Bank
Bank released its tenth RFP, a solicitation for Community activity is financing clean electricity generation in the
Distributed Generation Solar Projects including projects context of a microgrid. Many larger companies that are
with an energy storage component. involved in developing microgrid projects have the ability
to finance these projects on their own balance sheets or
The other main area of focus in financing for energy
else access financing through a preferred partner financial
storage projects has come from the creation of the ­Nevada
institution. However, as microgrids become more com-
Clean Energy Fund (NCEF). NCEF will fill a market need in
mon and smaller companies begin to involve themselves
Nevada by enabling access to financing for solar photo-
in project development, opportunities for Green Banks to
voltaic and energy storage projects in the commercial &
step in and finance a portion or all of a microgrid project
industrial (C&I) market sectors across the state. Solar pho-
are emerging.
tovoltaic and energy storage represent the best investment
opportunities for both the present (solar photovoltaic) and Financing non-recurring cash flow generating resilience
the future (both solar photovoltaic and energy storage). projects is a more difficult proposition, but innovative
NCEF was incorporated in 2018 and is nearing board business models are beginning to proliferate across the
­approval of its business plan. US. For example, the Florida Solar & Energy Loan Fund
10  |  Green Banks in the United States

has partnered with My Strong Home, a benefit corpora- a­ llows for Florida homeowners across the state to imple-
tion based out of South Carolina, to implement resilience ment resilience measures on their homes at little to no
measures on private homes. My Strong Home oversees up-front cost to the homeowner. The Climate Access Fund
the installation of strengthened roof upgrades and other in Maryland is exploring ways to facilitate combined
resilience measures, which then receive a Florida-mandat- community solar-resilience projects in low-income com-
ed financial incentive through their insurance company, munities. CAF would finance the community solar portion
known as a “wind mitigation credit.” The Florida Solar & of the project, given its associated cash flows, and the
Energy Loan Fund then finances the balance of the cost battery storage portion of the project would be financed
of the upgrades with a low-interest loan. This partnership separately through a state grant.

Spotlight on 2018 Green Bank Activity

T here was much to celebrate in 2018 across the

Green Bank movement. Green Banks in the US
caused $676 million of total investment in clean
energy projects for the year, and new initiatives were
launched from coast to coast. New members were added
necessary start-up activities, such as mobilizing operating
capital, forming its governance structure, and developing
and launching its introductory product line(s). 

CONNECTICUT GREEN BANK

to the community, and established members reached new
milestones. Fresh off of its Innovations in American Government
Award in 2017, presented by the Harvard Kennedy
Here’s a round-up of activity from 2018 from across the School’s Ash Center for Democratic Governance and
country: Innovation and with 5.2m tons of lifetime CO2 reduc-
tions under its belt, the Connecticut Green Bank (CGB)
CLIMATE ACCESS FUND made progress in 2018 in spite of headwinds arising from
the state’s budgeting process. In Fiscal Year 2018 (FY18),
The Climate Access Fund (CAF), incorporated as a non- the CGB used $33.6m in public dollars to attract more
profit organization in Baltimore, Maryland at the end than $232.2m in private investment. The CGB expand-
of 2017, solidified its operations and governance, and ed its nationally-­celebrated C-PACE program to include
identified its niche in Maryland’s emerging community financing for new construction. The C-PACE program
solar market over the course of 2018. CAF was estab- also celebrated the completion of 200 projects across the
lished in 2017 to increase low-income households’ access State of Connecticut, and by the end of the fiscal year had
to clean energy by filling the financing gap between the surpassed $127.2m in clean energy investments in Con-
state’s community solar regulations and the low-income necticut’s businesses. The CGB also won the State Leader-
solar marketplace with social impact capital. CAF has ship in Clean Energy award from the Clean Energy States
raised $2.1 million in public and philanthropic grant and Alliance (CESA), awarded in recognition of the CGB’s Solar
program-­related investment capital commitments, and it for All partnership. The Solar for All partnership between
anticipates closing on its first urban rooftop projects in the CGB and PosiGen is a public-private partnership that
2019. offers LMI customers in Connecticut a solar lease paired
with energy efficiency measures, regardless of income
COLORADO CLEAN ENERGY FUND or traditional measures of creditworthiness. Since the
partnership launched, solar penetration in Connecticut’s
Governor Hickenlooper announced the creation of the low-income communities has increased, moving Con-
­Colorado Clean Energy Fund (CCEF) at the close of 2018. necticut not only to a parity state (i.e., LMI households
The organization will begin operations in 2019 and is proportionally demanding solar PV the same as non-LMI
working with the Coalition for Green Capital to complete households), but to “beyond parity.” Also in the residen-
11  |  Green Banks in the United States

tial sector, the Smart-E program had its most successful for cost-effective energy retrofits, solar technologies, new
year in terms of loans closed and total dollars invested, roofs, windows and hurricane shutters, and other sustain-
with $4.2m in CGB investment leveraging private capital able home renovations.
surpassing $30.1m.
HAWAII GEMS
DC GREEN BANK
The Hawaii GEMS financing program, housed under the
On July 10, 2018, Mayor Bowser established the District umbrella of the Hawaii Green Infrastructure Authori-
of Columbia Green Finance Authority, or DC Green Bank, ty, continued to deliver financing crucial to achieving
as a quasi-governmental financial institution. The DC ­Hawaii’s mandate to reach 100% clean energy generation
Green Bank will leverage public capital to increase and by 2045. GEMS had a breakthrough year in 2018, extend-
accelerate private investment to help the District meet its ing financing to facilitate some $11.5m of clean energy
Clean Energy DC goals. In addition to managing the DC projects across the state. The Hawaii PUC also approved
Property Assessed Clean Energy (PACE) program, the DC the Green Energy Money $aver (GEM$) in December.
Green Bank will offer flexible funding options that lower The GEM$ program is an on-bill repayment program
the cost of capital for energy efficiency and clean energy that utilizes non-traditional underwriting and eligibility
projects. Although products are still in development, some guidelines for homeowner, renters, nonprofits and small
examples include: a loan for single-family homeowners, a businesses to install clean energy (both energy efficiency
loan for commercial and multi-family properties, and gap and solar PV) upgrades, which are then repaid by ratepay-
financing for solar projects. ers as a fixed amount per month. Additionally, in July of
2018, Governor David Ige signed a bill that created a $50m
FLORIDA SOLAR & ENERGY FUND revolving line of credit within GEMS for the installation
of cost-effective commercial energy efficiency measures at
The non-profit, CDFI Solar & Energy Loan Fund (SELF) state facilities.
had another record-breaking year in 2018, completing
$1.85 million in total lending, expanding its flagship INCLUSIVE PROSPERITY CAPITAL
“Rebuilding and Empowering Underserved Communi-
ties” program into 87 jurisdictions throughout Florida, Inclusive Prosperity Capital (IPC) was incorporated as an
developing additional loan products and programs, and independent, not-for-profit organization in mid-2018, and
opening up two (2) new satellite offices in the Gulf Coast officially launched soon after focusing on the intersection
Region (Tampa/St. Pete). SELF also achieved several major of community development, clean energy finance, and
milestones in 2018, including: (1) surpassing $8 million climate impact. Sparked by the Connecticut Green Bank,
in total lending; (2) completing their 1,000th single-fam- Connecticut Department of Energy and Environmental
ily project; (3) accomplishing $450,000 of PACE projects; Protection, and the Kresge Foundation, IPC is focused on
(4) raising nearly $100,000 of worldwide crowdfunding scaling its work in Connecticut and expanding its success-
via KIVA.org; (5) increasing its statewide contractor base ful model into other regions of the country by accessing
to more than 300; (6) securing its first FA award from the new mission-driven capital sources and partnerships.
CDFI Fund; and, (7) undertaking its largest expansion to
date. SELF continues to scale its existing programs and MARYLAND CLEAN ENERGY CENTER
­diversify its lending products through robust partnerships
with local governments, socially responsible lenders, non-­ Maryland Clean Energy Center (MCEC) is a corporate
profits, benefit corporations (B-Corps), earned-media, and instrumentality of the state created in 2008 to advance the
an expanding network of licensed and insured contrac- adoption of clean energy products, services, and technol-
tors. The SELF-team also continues to encounter strong ogies. With a focus on finance MCEC to date has leveraged
demand in low- and moderate-income (LMI) communities resources to assist residential, commercial, institutional
and not-for-profit consumers implement clean energy
12  |  Green Banks in the United States

generation and efficiency measures; including $38M in tax foundational governance documents, established an online
exempt and taxable bonds issued, over $4.4M in commer- presence, obtained pro bono legal representation, ­created
cial property assessed clean energy (PACE) loans, approx- a business plan, and submitted a $500,000 funding
imately $30M in lending to residential property owners ­request to the state legislature for early operations.
and $1M in direct municipal investment. In 2018, MCEC
hosted the Maryland Clean Energy Summit, a regional NEW YORK CITY ENERGY
conference assembling thought leaders in the energy and EFFICIENCY CORPORATION
climate change sector. MCEC is located in College Park,
Maryland. In 2018, NYCEEC achieved a major milestone – its financ-
ing impact grew to over $150 million in clean energy and
MICHIGAN SAVES energy efficiency investments, with over 10 percent of its
portfolio now outside of New York. This past year NY-
Michigan Saves, the nation’s first independent nonprofit CEEC financed a wide range of projects including building
green bank, saw tremendous growth in 2018. The organi- energy efficiency, lighting-as-a-service, fuel conversions,
zation surged past $172 million in financing for energy-­ and cogeneration. NYCEEC continued its commitment
efficiency and renewable energy improvements and in- to affordable housing in 2018, adding to the over 5,300
creased its residential loan and commercial loan volume by units of affordable housing greened to date with its
67 percent and 30 percent, respectively. This investment financing.  NYCEEC is also partnered with the City of
was marked by another significant milestone in which the New York to a­ ssist in designing a PACE program, now
organization financed its largest-ever commercial energy permitted through recently-enacted legislation, and was
improvement project at $2.5 million. Michigan Saves has designated as NYC’s PACE administrator. In 2018, NYCEEC
set an ambitious goal to finance $1 billion in green financ- also became a qualified PACE lender in the State of New
ing by 2023 and is committed to creating a clean energy York. Over the last year, NYCEEC has grown the number
landscape that all Michiganders can participate in. of financial institutions with which it has partnered in
funding projects to nine, and it has also assisted other
MONTGOMERY COUNTY GREEN BANK local green banks in their formation and initial operations.
Based in NYC, NYCEEC is a 501(c)(3) lender that provides
The Montgomery County Green Bank (MCGB), capital- loans for energy efficiency and clean energy projects in
ized with $14.1 million in funding from settlements funds eight northeastern states, plus the District of Columbia,
from the Exelon-Pepco Merger, launched its first program across all building types and neighborhoods.
in 2018, the Commercial Loan for Energy Efficiency and
­Renewables (CLEER), a loan-loss reserve product that NEW YORK GREEN BANK
gives commercial and industrial property owners (includ-
ing multifamily, nonprofits, and common ownership) in As of the end of the 2018 calendar year, NY Green Bank
the County the opportunity to access affordable financing had received over $3.1b in investment proposals and made
for clean energy and energy efficiency upgrades. The first $638m in investments to support clean energy projects
two lending partners of the program are making $20 mil- with a total project cost of up to $1.75b in New York State.
lion in loan capital available under the program.  Those investments in solar, community solar, energy effi-
ciency, and clean transportation contributed to estimated
NEVADA CLEAN ENERGY FUND gross lifetime GHG reductions of between 8.3 and 10.3
million metric tons, equivalent to removing up to 97,700
The Nevada Clean Energy Fund (NCEF) took its first steps cars from the road for 24 years. Above these numbers, NY
toward operation in 2018. The NCEF is the nation’s first Green Bank closed out 2018 with an active pipeline of
Green Bank that was created by a Republican governor projects totaling $574m and undertook a broad range of
in the US, Governor Brian Sandoval. The NCEF has been origination activities including issuing targeted solicita-
incorporated, received 501c3 status from the IRS, created tions for many new products/proposals related to energy
13  |  Green Banks in the United States

storage, CDG and LMI (e.g., RFI 4: Financing Arrange- to invest in clean energy projects. Since 2016, the Efficient
ments for Energy Storage Projects in New York State; RFI Buildings Fund has reduced energy and maintenance costs
5: Low to Moderate Participation in CDG Projects in NYS; for municipalities by approximately $66 million dollars
and RFP 10: Financing for CDG Solar Projects including through investments in onshore wind, solar, LED lighting
Projects Paired with Energy Storage). All this was accom- and highly efficient heating and cooling improvements.
plished while the organization has taken steps toward a In addition to the bond rating, EBF Green Bond received
third-party capital raise of $1b, which will provide addi- the highest green rating of “E1” through an independent
tional financing opportunities for clean energy projects third party evaluation by S&P. The EBF Bond was eval-
across the US. uated for climate resilience and environmental impact of
underlying projects and the adherence of the transaction
RHODE ISLAND INFRASTRUCTURE BANK to the Green Bond Principles. S&P’s report highlighted the
Bank’s strong transparency and governance procedures
Rhode Island Infrastructure Bank (RIIB) issued its inaugu- as well as adherence to the Green Bond Principles. The
ral public-market Green Bond for the Efficient Buildings ­Efficient Buildings Fund complements the Bank’s Commer-
Fund in November 2018. The Bank’s inaugural $18.3 mil- cial Property Assessed Clean Energy program, which pro-
lion Efficient Buildings Fund Green Bond was given a top vides access to long-term capital for commercial properties
rating of “AA” by Standard and Poor’s (S&P). The Efficient to make clean energy investments. Since inception, the
Buildings Fund provides below-market interest rate loans C-PACE program has financed $5.8 million for 16 projects
to municipalities, school districts and quasi-state entities across Rhode Island.

Formation of American Green Bank Consortium

T he American Green Bank Consortium gives voice

to and creates value for Green Banks across the
United States. The genesis of this Consortium
was a series of events that brought Green Bank leaders
together that yielded tremendous value for the attendees
• Montgomery County Green Bank
• New York City Energy Efficiency Corporation
• Nevada Clean Energy Fund
• Rhode Island Infrastructure Bank
of the events. The Consortium was built to harness this
potential ongoing value creation in one place, offering In March of 2019, two additional new members joined the
planned convenings, working groups, industry reports, Consortium:
advocacy, communications assistance, research assistance,
• Colorado Clean Energy Fund
deals for members, mentoring support, and more.
• DC Department of Energy and Environment
The American Green Bank Consortium was launched in
All of these members are nonprofit finance institutions,
January of 2019, with the following founding members:
dedicated to maximizing investment in clean energy
• Baltimore Climate Access Fund projects in their jurisdiction. A number of different Green
Bank creation initiatives are in various stages of develop-
• Connecticut Green Bank
ment across the United States, and the Consortium will
• Florida Solar & Energy Loan Fund expand its membership as these organizations are brought
• Hawaii Green Infrastructure Authority/GEMS online.

• Inclusive Prosperity Capital

• Maryland Clean Energy Center
• Michigan Saves
14  |  Green Banks in the United States

Look Ahead at Green Bank Activity in 2019

G reen Banks across the US are moving ahead

with ambitious plans to increase their impact in
markets where they are already active while also
expanding into new markets and sectors. In particular,
low to moderate income (LMI) programs and products
Hawaii’s GEMS financing program, run by the Hawaii
Green Infrastructure Authority, is looking to place a
greater focus on LMI projects. The Montgomery County
Green Bank received an additional $11 million investment
from the County to conduct additional energy efficiency
are beginning to take hold at Green Banks all over the and renewable energy programs to support nonprofits,
map. In New York, the New York City Energy Efficiency affordable housing, and municipal buildings.
Corporation (NYCEEC) is rewriting its strategic plan,
with a particular focus on LMI. Inclusive Prosperity Beyond specific areas of policy focus, Green Banks will
Capital (IPC), which is the recently formed spin-off of the continue to deliver on their mission of maximizing invest-
Connecticut Green Bank, is partnering with Posigen and ment in clean energy projects across the United States.
LibreMax Capital to offer a $90 million, three-year credit Additionally, more Green Banks will look for ways to
facility that will support clean energy installations in LMI achieve their missions while operating in a financially
areas. Michigan Saves, Michigan’s Green Bank, received a self-sustaining way, following the lead of the New York
four-year commitment from a Michigan utility to launch Green Bank, which reported enough operating revenue to
a revolving loan fund for clean energy upgrades for LMI post a positive net income in 2017 – a full year ahead of
residents. Maryland’s Climate Access Fund is dedicated schedule. From Hawaii to Rhode Island, Green Banks will
exclusively to increasing LMI access to clean energy continue to find new and innovative methods to tackle the
technologies, with a current focus on community solar. most pressing energy needs in their communities.

Appendix: Methodology

T he Green Bank impacts presented in this report

are the result of information gathering performed
by CGC. Key metrics were collected from the
public reports issued by each Green Bank as well as
direct information provided to CGC by various Green
calculated over the lifetime of the project. Furthermore,
each Green Bank has its own reporting methodology and
therefore, totals represent the sum of estimates that may
be calculated using different or conflicting assumptions.
As part of this research, CGC did not investigate the
Banks upon request. When information in the various indivdual reporting methodologies of each Green Bank
reports was in conflict from year to year, the most recent but assumed that data reported using the same units
report’s number was used (e.g. if the 2017 annual report (e.g. MWh, MMBtu, etc.) over a project’s lifetime were
had a higher total investment for the year than the 2018 fungible. Sources for Green Bank data in the report are
report, the 2018 report number was used). When numbers from the Green Bank self-reporting, as well as direct
were presented as ranges (e.g. overall investments ranged press releases and other official communications from the
between $1.4–1.6 billion), CGC used the lowest number to organizations.
keep its figures conservative. All numbers presented are