WASHINGTON—U.S. Senator Chris Murphy (D-Conn.) and U.S. Senator Richard Blumenthal (D-Conn.) introduced legislation to create a national green bank. The Green Bank Act of 2021 would create a national green bank to deploy public financing for federal, regional, state, and municipal green banks, including the Connecticut Green Bank. This federal financing would unleash large-scale, private investments in clean energy and energy efficiency projects, particularly for low- to moderate-income families, creating thousands of clean energy jobs while combating climate change. The bill ensures that green banks in U.S. Territories would be eligible for federal financing, and it would provide assistance to eligible jurisdictions seeking to establish their own green banks.

“The Connecticut Green Bank has proven to be an economic boon – leading to thousands of jobs and billions of dollars invested in clean energy products around our state. The legislation we’re proposing today would take this model nationally so states can establish their own green banks, create clean energy jobs and reduce carbon pollution. To tackle the existential threat of climate change, we’re going to have to pull resources from the public and private sectors. This legislation helps us get there,” said Murphy.

“This legislation would build on the success of states like Connecticut that have shown green banks benefit both the economy and the planet. Over the last decade, Connecticut’s pioneering Green Bank has led by example, spurring big investments in clean energy projects at a large scale. It has created green and well-paid jobs and reduced energy costs in the state, all while lowering CO2 emissions and preserving the environment. The Green Bank Act would expand this successful model nationally,” said Blumenthal.

“This proposal would build on the green bank model to unlock significant private investment in clean energy and environmental infrastructure projects at the state and local levels,” said Bryan Garcia, President and CEO of the Connecticut Green Bank.  “What is even more innovative is that the proposal includes the issuance of green bonds as a funding mechanism which could build on the Green Liberty Bonds pioneered here in Connecticut that provide citizens across the country with an opportunity to invest in the modernization and decarbonization of our local infrastructure, while making it more resilient to the impacts of climate change.”

Connecticut Green Bank was the first green bank in the country. Since it was founded in 2011, the Connecticut Green Bank has leveraged almost $2 billion in clean energy investments, created the equivalent of more than 23,000 jobs, and reduced approximately 8.9 million tons of CO2 emissions over the lifetime of its financed projects. The success of the Connecticut Green Bank has inspired the creation of similar green banks across the country. 

U.S. Representative Jim Himes (CT-4) introduced companion legislation in the U.S. House of Representatives.

Full text of the bill can be viewed here. 

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