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 energy
over ten years.
 The United States is 10th in the world in clean energy investments as a share of
national 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/equity
ratios and loan terms.

Opportunities for the US Government

 Establish a Green Bank: The Clean Energy Development Administration would

act as an independently operated, publicly owned bank that could leverage $10
billion into $100-200 billion in public and private lending to clean tech.
 Clean Energy Victory Bonds: Could raise $5-10 billion that could be directed
to clean tech projects and leveraged to provide $100-200 billion in lending (and
can work in conjunction with a Green Bank). The bonds could be issued to
individuals and corporations in denominations as low as $25, and could energize
Americans 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 municipal
bond authorities, and have proven successful in expanding capital improvements
(at a time when tax exempt bonds are less attractive). A BAB dedicated to clean
tech could assist municipalities nationwide in launching clean tech growth in their
community.
 Accelerate Federal Loan Guarantees: There are billions of dollars in potential
loan 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 can
allow municipalities to set up loan programs allowing local residents and
businesses 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 provide
support for PACE (Property Assessed Clean Energy) funds that are showing
promise nationwide, including through block grants. PACE funds allow
homeowners to borrow funds to install energy efficiency or solar power, and then
repay the loan over the long term through a special assessment on the property.
 Comparison of Federal Clean Energy Financing Models

Model No Open to Open to Assist Finances Finances

Federal Individual Institutional Municipal Start-ups Existing
Tax Investors Investors ities and and Larger
Dollars Smaller Companies
Used Companies
Green Bank     
Clean
Energy
Victory      
Bonds
Build
America  
Bonds
Loan
Guarantees 
Block
Grants  * *
Federal
Support for  * *
PACE

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

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