Jake Caldwell at the Center for American Progress states that to successfully fund green energy projects and create jobs in this market, the federal government should create a Green Bank.
Caldwell cites Center studies showing the potential jobs, energy and costs savings that could be realized more quickly through a central lending facility. However, one interesting point made in the post is:
“… many existing off-the-shelf clean energy and efficiency technologies are abandoned due to a lack of funding as they attempt to be deployed at larger scale.”
Indeed, renewable energy investment dropped precipitously in the first quarter of 2009, the period for which complete data are available, to $500 million compared to $2 billion in the fourth quarter of 2008 and $5 billion in the first quarter of 2008.”
At NECA, we’ve heard anecdotes about energy efficiency projects being put on indefinite hold while owners and developers chase ARRA funds. The Small Business Financial and Investment Act of 2009 passed today by the House includes provisions for accelerating and expanding lending through the Renewable Energy Capital Investment program.
What do you think about a federally-owned, not-for-profit Green Bank? Would it move projects along, or simply be another funding well that investors need to examine before moving a project forward?