After Alaska’s legislature spent much of two years structuring a revolving energy efficiency loan facility, Gov. Sean Parnell signed legislation last year establishing a new loan-participation fund to be administered by the state’s development finance corporation, the Alaska Industrial Development and Export Authority (AIDEA). The Sustainable Energy Transmission and Supply (SETS) development fund’s initial capitalization is $125 million, appropriated from state revenues. Eligible projects include commercial building energy retrofits as well as clean-energy generation projects. When SETS loans directly to property owners or other project sponsors, it will typically fill capital stack gaps while covering as much as one-third of…

In May, the Aloha State’s legislature passed a bill authorizing an innovative structure for financing commercial and residential energy-efficiency equipment upgrades and on-site generation installations with low-cost debt through a Green Infrastructure Loan Program. It involves investment-grade bond financing – credit-enhanced through Hawaii’s clean-energy systems benefit charge (a dedicated utility surcharge) – along with on-bill repayment capabilities. As interest payments on the green infrastructure bonds come from loan payments by participating businesses – via the dedicated surcharge – they should command triple-A ratings, translating to low-interest loans for retrofits and renewable generation projects. And the bonds don’t entail a general…

Gov. Peter Shumlin in June signed legislation establishing a pair of energy-efficiency loan participation programs, along with a related loan-guarantee program to be administered by the Vermont Economic Development Authority (VEDA). VEDA can borrow as much as $10 million from Vermont’s State Treasury to fund activities associated with the new Vermont Clean Energy Loan Fund, which aims to facilitate 90 percent funding. The Commercial Energy Loan Program and Small Business Energy Loan Program allow VEDA to lend as much as 40 percent of project costs for energy retrofits or on-site generation at non-residential properties. Participating banks and other lenders are…

To be administered by New York State Energy and Research Development Authority (NYSERDA), New York’s soon-to-launch $1 billion green bank will look to enhance private credit and round out capital stacks when lenders are unwilling to cover entire project costs. In September, NYSERDA formally requested the bank’s first round of capitalization funds, amounting to about $165 million in previously uncommitted tax revenues, from the Public Service Commission. The state bank will aim to help facilitate markets for credit-enhanced bonds backed by pooled clean-energy loans. Warehousing such loans before securitization will help standardize loan terms – and will also help get…

Billed as the nation’s first state green bank, Connecticut’s Clean Energy Finance and Investment Authority (CEFIA) consolidates existing energy-related funding activities. To minimize any new taxes funding CEFIA’s activities, the state imposed an electricity ratepayer surcharge (amounting to less than one cent per kilowatt-hour) that is expected to generate $30 million for CEFIA programs annually. The state also rolled $18 million into CEFIA’s capitalization from the existing Connecticut Green Loan Guaranty Fund. And CEFIA has the authority to issue as much as $50 million in bonds that would be backed by the state’s special capital reserve fund. With respect to…