Climate change is poised to impact Rhode Island in a big way. With more than 400 miles of coastline, looming rises in sea levels could be devastating to our cities and towns. Our tourism and fishing industries may face beaches washed away by erosion, and fish stocks diminished by changing sea temperatures. Our farms, a bright spot in our economy, may soon be dealing with increased droughts, more severe storms, and more extreme seasons. All of these things will put stress on our infrastructure and our government services. We must do everything we can now to adapt to an environment transformed by climate change, and mitigate the impact that it will have on our state.
We also have to recognize that better protecting the environment is not only the right thing to do, it is also an economic driver. By better implementing a statewide strategy we can create good green jobs that get people back to work.
Fortunately, our state has already made great strides. Between regional initiatives designed to limit emissions, and state programs that help businesses and homeowners upgrade to energy-efficient technologies, we are already a national leader in energy policy. But there is room for growth: we have an opportunity to ramp up our efforts to mitigate climate change and adapt to its impact, while simultaneously making Rhode Island a model for the entire country when it comes to renewable energy usage and climate change preparedness.
That’s why I’m proposing the creation of a Rhode Island Green Bank and Clean Energy Finance Authority. The bank will encourage the large-scale adoption of clean energy and energy efficiency solutions by creating a dependable, accessible source of funding and capital for all Rhode Islanders. Government funds alone will likely not be enough to address the challenge of climate change. The Green Bank will allow the state to integrate private capital into the mix of existing state funds to ramp up the deployment of clean energy technologies, while at the same time helping to create green jobs.
Here’s how it will work:
The Green Bank will be dedicated to (1) educating Rhode Islanders about the benefits and availability of clean energy and energy-efficient technologies, and (2) maintaining sources of funding for installation of these technologies in homes, businesses and even our municipalities. It will consolidate the good work being done throughout the state in order to become a one-stop shop for anyone looking to reduce their dependence on carbon-based fuels, or make their home or business more energy efficient. It will provide low-cost 100 percent loans for Rhode Islanders’ energy efficiency projects, and house expertise and resources for the entire state.
We must also ensure that our municipalities have the resources they need to adequately prepare themselves for the impacts of climate change. Rising sea levels, more severe storms like Superstorm Sandy, and more extreme seasons will put stress on the infrastructure of our cities and towns. We need to give them the support they need to improve their storm water drainage systems, protect their coastal properties, prevent erosion and more. That’s why the Green Bank will also house an Adaptation and Resiliency Revolving Fund to provide low-interest loans to our municipalities for projects that will help them prepare for the changes wrought by climate change. We know these efforts can make a difference: Bristol recently upgraded its storm water management system, and has reduced the number of beach closures in their town significantly. North Kingstown is investing in a climate change plan to prepare their coastal communities for potential storms. The Adaptation and Resiliency Revolving Fund will empower all of our municipalities to do the same.
In order to maximize its impact, the Green Bank will:
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Be established as a quasi-public corporation, with public board appointed by the governor and the General Assembly. Members of the board will have clean energy financing expertise;
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Have its own budget outside of the budget of the state, to allow for greater flexibility and autonomy while reducing risk for Rhode Island taxpayers;
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Enable private investment in Rhode Island’s growing clean energy economy by opening up financing markets and implementing innovative financing solutions and partnerships with private sector partners;
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House an Adaptation and Resiliency Revolving Fund to help finance measures that will enable our state and its municipalities to adapt to the impact of climate change, such as rising sea levels and more severe storms;
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Consolidate existing sources of funding under one roof. This will include, but not be limited to: proceeds from bonds, revenue from the Regional Greenhouse Gas Initiative allowances, existing assets in the Renewable Energy Fund and the existing surcharge on Rhode Island electricity customers’ bills;
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Be authorized to issue bonds and other obligations, in order to fully capitalize the bank. These bonds will only be repayable to bond-holders using existing Green Bank assets, in order to relieve the state and tax-payers of additional debt.
- Have strong transparency and accountability standards. The Green Bank will be required to make regular reports to the General Assembly, and provide fully-public information regarding its financial condition. The Bank will be subject to regular formal audits by an external third party.
Green Banks are becoming an increasingly common tool for expanding the availability of clean energy financing. Connecticut established the country’s first full-scale clean energy finance authority, the Clean Energy Finance and Investment Authority (CEFIA), in 2011. CEFIA brought together existing sources of clean energy funding and disconnected clean energy efforts to maximize their impact and utilization throughout the state. New York did the same just last December, establishing its own Green Bank to leverage private financing for clean technologies. We have the opportunity to do the same here in Rhode Island. By capitalizing on our existing efforts, we can become a national model for clean energy deployment and climate change preparedness.
