Clean energy bank bill passes in House

A bill that will establish Virginia’s first “green bank” passed 57-40 with bipartisan support in the House Monday.

The bill, SB 729, creates the Virginia Clean Energy Innovation Bank, which is a government organization that speeds up clean energy projects through public funds, grants, loans and other financial methods, Kimberly McKay, legislative fiscal analyst for the committee said.

The bank will fund projects that support clean energy, energy efficiency and water conservation and will focus on supporting projects in low-income communities, Lee Francis, deputy director of Virginia League of Conservation Voters said.

The VLCV is a political action committee that advocates for environmental bills to pass in the state. The VLCV donated $35,000 to Sen. Majority Leader Scott Surovell (D-Mount Vernon) in October 2023, who is the chief patron of SB 729.

Michael Town, executive director of the VLCV, said the bipartisan vote is “a huge win for clean energy in Virginia,” in a press release.

The bank will receive funds from the Inflation Reduction Act’s Greenhouse Gas Reduction Fund, a $27 billion investment that can be distributed to states, cities or Tribal governments. Surovell said Virginia is falling behind other U.S states for not accessing these funds sooner.

If Virginia invests $3 million, Virginia will receive  $97 million in federal loans for the green bank, Surovell said.

“We’re leaving money on the table,” Surrovell said at the Senate’s Finance and Appropriations committee meeting on Feb. 12. “Other states are taking our money because we’re not acting.”

Surovell said the bill is inspired by Minnesota’s Climate Innovation Finance Authority which passed legislation in May 2023. There are 21 greenbanks in 16 states, according to the American Green Bank Consortium from 2021.

Surovell said in the Senate’s Finance and Appropriations committee on Feb. 12 that he is still working to have appropriated funds for the green bank.