Green Bank for Rural America - Growing Sustainable Energy Economy
Green Bank for
Appalachia,
Energy Communities,
and Underserved Rural America
Growing the next generation energy economy in Rural America
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Green Bank for
Rural America
EPA Greenhouse Gas Recovery Fund CCIA application process:
●
Application Submitted: October 12
●
Notification as Top Ranked Application: December 15
●
EPA Interview: January 8
●
Notification of Selection: ~March 2024
●
Start of Period of Performance: ~July 2024
Green Bank for
Rural America
Contents
1.
Target Communities
2.
Governance
3.
Organizational Structure
4.
Network of Community Lenders
5.
Capitalization and Technical Assistance Subawards
6.
Financial Assistance: Use of Funds/Financial Products
7.
Eligible Projects
8.
TA Hubs and TA Services
9.
Impact Reporting
10.
Timeline / Next Steps
Green Bank for Rural America
Target communities:
1.
Appalachian Region –
entire
13
state region.
2.
Energy Communities –
see map
3.
Rural Communities
4.
Other geographies with High
Impact Projects - TBD
Green Bank for Rural American
W
ill operate
in all 10 EPA Regions.
•
Need not operate in all 50
states.
•
Need not operate in all
counties in a given state.
Green Bank for Rural America - Structure
Total Pass-Thru: $900mm
Avg Award = $10mm Capital + $1mm TA
Limited # of higher awards up to $50mm
Appx 100 lenders
100% owned non-profit subsidiary of ACC
Contracts for
TA services
Leverage Private
Investment
Green Bank for Rural America
Steering Committee
/ National Partners
⮚
Appalachian Community Capital.
34 members that manage +$2 billion in assets targeting Appalachia
communities in 13 states and 423 counties.
⮚
Coastal Enterprises Inc (CEI).
Based in Maine and finances rural nationwide.
+$1.5 billion in
deployment for business and communities to support good jobs and environmentally sustainable
development.
⮚
Main Street America (MSA) / NTCIC / National Trust for Historic Preservation.
Works in over 1,500
communities nationally with $2 billion in deployments.
⮚
Grow America (formerly National Development Council).
Nationwide footprint, rural and urban. Over
$6 billion in financings for housing, community facilities, business lending, C&I in 500 communities.
⮚
Coalfield Development Corporation.
Lead workforce development partner. Nationally recognized
leader in workforce development located in the heart of Appalachian coal country, works with
business, educational partners, and unions to train employees for quality job opportunities.
⮚
WV Community Development Hub.
Lead Community Engagement partner.
Nationally recognized
community development leader located in the heart of Appalachian coal country,
Network of Community Lenders
•
Community Lenders
•
CDFIs, EDA RLFs, USDA IRPs
•
State, municipal, Tribal government loan funds
•
Quasi-government community loan fund – with public purpose
•
Not-for-profit loan funds
•
Serve Appalachia, Coal and Energy Communities, and Underserved
Rural Communities
•
Community Engagement commitment
•
Workforce Development commitment
Capitalization Awards to Community Lenders
•
Pass-through grants or project subsidy
•
Most Awards up to $10 million per Community Lender
•
Exception Framework for Awards up to $50 million per Community
Lender
•
Must be an
existing
Community Lender to receive an Award
•
Reporting and compliance requirements
Financial Assistance: Eligible Uses
Eligible uses by Community Lenders include:
•
Debt – senior and subordinate
•
Forgivable debt
•
Tax credit bridge financing
•
New Markets Tax Credit leverage debt
•
On-bill financing credit facilities
•
Aggregation / Warehousing – with potential resale to secondary market
•
Refinancing products
•
Lease Financing
•
Structured Finance Solutions
•
Equity Investments
•
Securitization – LLR and interest rate buy down
Eligible Projects
1.
Reduce greenhouse gases, air pollution, and contribute to cleaner
environments and communities
that wouldn’t be otherwise financed
2.
Priority Projects
•
Low carbon emissions buildings (including housing) – new or renovated
•
Distributed energy generation and storage
•
Zero emissions transportation – cars, buses, trucks, charging infrastructure
3.
Low Income and/or Disadvantaged Communities - by either:
•
Geography
•
CEJST-Identified Disadvantaged Communities
, or
•
EJScreen
- Identified Disadvantaged Communities
•
o
r Income
•
For Non-Metropolitan Areas: 80% of AMI and 200% of the Federal Poverty Level or
•
Approved for assistance from income-based federal assistance such as HHS, SNAP,
School Lunch, SSI, ALICE, etc., or
•
Affordable Housing with rents not exceeding 30% of 80% AMI for at least 1/2 of units.
Includes LIHTC, Section 8, USDA 514/515, …
Technical Assistance Awards to Community
Lenders
•
10% of Capitalization Funding received
•
May be used for activities such as:
•
Supporting pre-development activities (engineering, design, business
planning / project development, financial structuring, …)
•
Procuring training, hiring staff, developing new financial products and
internal systems
•
Community Engagement, visioning, planning, project development
•
Workforce Development with community colleges, workforce boards,
unions, training organizations
•
TA Hubs will offer TA resources to support Community Lenders
TA Hubs and TA Services
•
The Green Bank will establish TA
Hubs in areas aligned with Program
Goals and Priority Projects
•
TA Services (webinars, online
resources) will be available to all
community lenders
•
CLs can use their TA subgrants to
purchase services from these
providers
•
CLs can use their TA subgrants to
purchase services from other
qualified providers / local providers
Examples of TA Services offered include:
Development Services:
•
Business plan / feasibility studies
•
Market studies / market research
•
Financial structuring / modeling, pro forma preparation
•
Engineering, design / architectural
•
Access to tax credits, utility subsidies
•
Raising private capital
•
Structuring solar/wind contracts with local utilities
•
Clean energy / energy efficiency grant applications
•
Workforce Development – workforce training and job readiness
•
Community Engagement – community planning, project visioning, project initiation
•
Metrics / Measurement Frameworks
•
Data Hub services: eg risk modeling, forecasting, opportunity mapping / analysis, GIS
mapping of projects (in LIDAC communities) and lead generation
Impact Reporting
Community Lenders will report on outputs and outcomes from their green
financing, such as:
•
Greenhouse gas emissions/Other Air Pollutants reduced or avoided
•
Additional Benefits to LIDAC Communities
•
Priority Projects financed
•
Community engagement activities
•
Workforce development activities
•
Market transformation metrics
S
ome metrics are familiar. We will develop templates and training for others
Prospective Timeline – accelerated Next Steps
⮚
March: notification of selection by EPA?
⮚
April - June: negotiation and execution of grant award with EPA
⮚
July – September: Green Bank Start-Up:
o
Hire
lead staff
o
Develop procedures, application materials, selection process
⮚
October: open Capitalization Award application
⮚
January: approve and issue first Capitalization Awards to
Community Lenders.
Green Bank for
Appalachia,
Energy Communities,
and Underserved Rural America
Growing the next generation energy economy in Rural America
https://appalachiancommunitycapitalcdfi.org/oa-program/green-bank-for-appalachia-energy-
communities-and-underserved-rural-america/
greenbank@acc1.org
The Green Bank for Rural America aims to support economic growth by growing the next-generation energy economy, creating quality jobs in distressed communities, and reducing carbon footprints. Through funding from various sources, the bank will target communities in the Appalachian region and beyond, focusing on eligible projects and impactful initiatives. Operating within EPA regions, the bank seeks to foster sustainability and innovation in rural America.
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Presentation Transcript
Green Bank for Appalachia, Energy Communities, and Underserved Rural America Growing the next generation energy economy in Rural America
Vision: The Green Bank for Rural America will grow the next generation energy economy, supporting thousands of businesses and create thousands more quality jobs in economically distressed communities while reducing the carbon footprint in target communities. This effort will be supported by funding from the EPA Greenhouse Gas Reduction Fund (GGRF), the Appalachian Regional Commission, as well as private investment from corporate and philanthropic partners. Appalachia and Rural America have powered the economic growth of our nation from coal, to oil, to natural gas - and the Green Bank will help ensure these communities are well positioned to leverage opportunities presented by the new energy economy.
Green Bank for Rural America EPA Greenhouse Gas Recovery Fund CCIA application process: Application Submitted: October 12 Notification as Top Ranked Application: December 15 EPA Interview: January 8 Notification of Selection: ~March 2024 Start of Period of Performance: ~July 2024
Green Bank for Rural America Contents 1.Target Communities 2.Governance 3.Organizational Structure 4.Network of Community Lenders 5.Capitalization and Technical Assistance Subawards 6.Financial Assistance: Use of Funds/Financial Products 7.Eligible Projects 8.TA Hubs and TA Services 9.Impact Reporting 10.Timeline / Next Steps
Green Bank for Rural America Target communities: Appalachian Region entire 13 state region. 1. Energy Communities see map 2. Rural Communities 3. Other geographies with High Impact Projects - TBD 4.
Green Bank for Rural American Will operate in all 10 EPA Regions. Need not operate in all 50 states. Need not operate in all counties in a given state.
Green Bank for Rural America - Structure ACC Board Green Bank Steering Committee ACC CEO 100% owned non-profit subsidiary of ACC Green Bank Chief of Staff, Chief Risk Officer, Audit, Compliance Green Bank CEO & Management Team Pass-Thru Awards Capital and TA Technical Assistance Hubs Leaders/Partners Total Pass-Thru: $900mm Net Zero Emissions Buildings & Housing Contracts for TA services Energy Production & Storage Avg Award = $10mm Capital + $1mm TA Limited # of higher awards up to $50mm Network of Community Lenders Appx 100 lenders Zero Financing Strategies Emissions Transportation Leverage Private Investment Eligible Projects Community Engagement Workforce Development
Green Bank for Rural America Steering Committee / National Partners Appalachian Community Capital. 34 members that manage +$2 billion in assets targeting Appalachia communities in 13 states and 423 counties. Coastal Enterprises Inc (CEI). Based in Maine and finances rural nationwide. +$1.5 billion in deployment for business and communities to support good jobs and environmentally sustainable development. Main Street America (MSA) / NTCIC / National Trust for Historic Preservation. Works in over 1,500 communities nationally with $2 billion in deployments. Grow America (formerly National Development Council). Nationwide footprint, rural and urban. Over $6 billion in financings for housing, community facilities, business lending, C&I in 500 communities. Coalfield Development Corporation. Lead workforce development partner. Nationally recognized leader in workforce development located in the heart of Appalachian coal country, works with business, educational partners, and unions to train employees for quality job opportunities. WV Community Development Hub. Lead Community Engagement partner. Nationally recognized community development leader located in the heart of Appalachian coal country,
Network of Community Lenders Community Lenders CDFIs, EDA RLFs, USDA IRPs State, municipal, Tribal government loan funds Quasi-government community loan fund with public purpose Not-for-profit loan funds Serve Appalachia, Coal and Energy Communities, and Underserved Rural Communities Community Engagement commitment Workforce Development commitment
Capitalization Awards to Community Lenders Pass-through grants or project subsidy Most Awards up to $10 million per Community Lender Exception Framework for Awards up to $50 million per Community Lender Must be an existing Community Lender to receive an Award Reporting and compliance requirements
Financial Assistance: Eligible Uses Eligible uses by Community Lenders include: Debt senior and subordinate Forgivable debt Tax credit bridge financing New Markets Tax Credit leverage debt On-bill financing credit facilities Aggregation / Warehousing with potential resale to secondary market Refinancing products Lease Financing Structured Finance Solutions Equity Investments Securitization LLR and interest rate buy down
Eligible Projects Reduce greenhouse gases, air pollution, and contribute to cleaner environments and communities that wouldn t be otherwise financed Priority Projects Low carbon emissions buildings (including housing) new or renovated Distributed energy generation and storage Zero emissions transportation cars, buses, trucks, charging infrastructure 1. 2. Low Income and/or Disadvantaged Communities - by either: 3. Geography CEJST-Identified Disadvantaged Communities, or EJScreen - Identified Disadvantaged Communities or Income For Non-Metropolitan Areas: 80% of AMI and 200% of the Federal Poverty Level or Approved for assistance from income-based federal assistance such as HHS, SNAP, School Lunch, SSI, ALICE, etc., or Affordable Housing with rents not exceeding 30% of 80% AMI for at least 1/2 of units. Includes LIHTC, Section 8, USDA 514/515,
Technical Assistance Awards to Community Lenders 10% of Capitalization Funding received May be used for activities such as: Supporting pre-development activities (engineering, design, business planning / project development, financial structuring, ) Procuring training, hiring staff, developing new financial products and internal systems Community Engagement, visioning, planning, project development Workforce Development with community colleges, workforce boards, unions, training organizations TA Hubs will offer TA resources to support Community Lenders
TA Hubs and TA Services Technical Assistance HUBS The Green Bank will establish TA Hubs in areas aligned with Program Goals and Priority Projects TA Services (webinars, online resources) will be available to all community lenders CLs can use their TA subgrants to purchase services from these providers CLs can use their TA subgrants to purchase services from other qualified providers / local providers Distributed Energy Production/Storage Net Zero Emissions Buildings Zero Emissions Transportation Financing Strategies Community Engagement Workforce Development
Examples of TA Services offered include: Development Services: Business plan / feasibility studies Market studies / market research Financial structuring / modeling, pro forma preparation Engineering, design / architectural Access to tax credits, utility subsidies Raising private capital Structuring solar/wind contracts with local utilities Clean energy / energy efficiency grant applications Workforce Development workforce training and job readiness Community Engagement community planning, project visioning, project initiation Metrics / Measurement Frameworks Data Hub services: eg risk modeling, forecasting, opportunity mapping / analysis, GIS mapping of projects (in LIDAC communities) and lead generation
Impact Reporting Community Lenders will report on outputs and outcomes from their green financing, such as: Greenhouse gas emissions/Other Air Pollutants reduced or avoided Additional Benefits to LIDAC Communities Priority Projects financed Community engagement activities Workforce development activities Market transformation metrics Some metrics are familiar. We will develop templates and training for others
Prospective Timeline accelerated Next Steps March: notification of selection by EPA? April - June: negotiation and execution of grant award with EPA July September: Green Bank Start-Up: o Hire lead staff o Develop procedures, application materials, selection process October: open Capitalization Award application January: approve and issue first Capitalization Awards to Community Lenders.
Green Bank for Appalachia, Energy Communities, and Underserved Rural America Growing the next generation energy economy in Rural America https://appalachiancommunitycapitalcdfi.org/oa-program/green-bank-for-appalachia-energy- communities-and-underserved-rural-america/ greenbank@acc1.org
