HB 1919 (Kory) authorizes local governments to create green banks, an emerging finance mechanism that leverages public funding to attract private capital for investment in energy efficiency, renewable energy, and other distributed energy resources.
The legislation specifies that a locality may, by ordinance, establish a green bank to promote the investment in “clean energy technologies” and may include the following functions for a green bank:
- Finance investment or financial support of investment in clean energy technologies to foster the growth and development of renewable energy sources;
- Stimulate the demand for renewable energy and the deployment of clean energy technologies that serve end-use customers;
- Before making any loan, loan guarantee, or other form of financing support for clean energy technologies – develop rules, policies, and procedures to specify borrower eligibility and any other term or condition of financial support;
- Provide financing or financial support for clean energy technologies;
- Develop consumer protection standards for investments to ensure that the green bank and its partners are lending in a transparent and responsible manner that is in the financial interests of the borrowers; and
- Undertake any other activity as needed to support the mission of the green bank.
HB 1919 passed the house and is now headed to the Senate floor for consideration. VACo supports legislation allowing counties utilize creative financing mechanisms that enable the development of renewable energy sources and energy efficiency programs and measures.
VACo Contact: Joe Lerch, AICP