Montgomery County Green Bank Readying to Launch
With support and assistance from the Sierra Club’s Montgomery County Group, Montgomery County is preparing to launch later this year the Montgomery County Green Bank. The Green Bank was established by the County Council to significantly boost investment in clean energy and energy efficiency in the county. Since the County Council acted, the County has been meeting with interested citizens, including Sierra Club members, to ensure that the Bank will be fully ready to carry out its mission when it opens its doors to business.
In June 2015, the County Council enacted legislation to establish a County Green Bank, supported by testimony submitted by the County Sierra Club. The County then convened several work groups of interested citizens to study and consider a variety of issues, including how the new Green Bank will be governed, the most advantageous market opportunities for the Green Bank, and sources of funding for the Bank. Montgomery County Sierra Club members have actively participated in the work groups. The work group process will conclude in May.
The final step in this process will be for the County Council to designate a tax exempt, nonprofit corporation to serve as the Green Bank. This will be a quasi-public entity not part of County government. It will be governed by a board of directors of up to 11 members, which, it is anticipated, will include a representative of an environmental organization, two representatives from the County government, and persons with experience in clean energy financing.
The “Green Bank” concept is a relatively new financing mechanism to more effectively use limited public funds to leverage private investment in clean energy and energy efficiency. It may be implemented through a variety of governing and operating structures, and may utilize a diverse array of financial tools depending on the needs of the particular market being served. The State of Connecticut, for example, established a state Green Bank a few years ago, and has already tripled the leverage ratio of public-to-private funding for clean energy projects in the state.
In the 2016 session, the Maryland General Assembly considered bills to establish a state Green Bank, following completion of a two-year study that positively reviewed the Green Bank concept. The Sierra Club’s Maryland Chapter submitted testimony in support of these bills, however, the bills died in committee.