Treasurer Joe Torsella announced the establishment of the Keystone Green Bank Partnership (Keystone Green), in coordination with the Department of Environmental Protection. Keystone Green will provide attractive financing to projects that support clean and alternative energy sources, non-fossil fuel transportation, and other similar projects.
“There is no greater threat to Pennsylvania and our planet than climate change. We must make meaningful change to reduce carbon emissions and get a handle on this crisis, before it’s too late. Pennsylvania is one of the largest energy producers in the country, and we need innovative ways to catalyze clean and renewable energy sources to have a bright future for generations to come. Keystone Green will promote projects that are good for Pennsylvania communities, good for Pennsylvania jobs, and set Pennsylvania on a sustainable path for the future. We are excited to partner with the Department of Environmental Protections on this important task”, said Treasurer Torsella.
A green bank operates as a financing facility that prioritizes energy-efficient and alternative energy projects that benefit the environment and health of communities while generating a return for their investors. Keystone Green will be structured as public-private partnership that offers low-cost financing to projects that:
- Increase energy efficiency to reduce energy demand, and use, in the Commonwealth;
- Enlarge the amount of sustainable and non-fossil fuel energy produced in the Commonwealth, and the infrastructure necessary to facilitate its use;
- Promote and/or expand the use of non-fossil fuel transportation in the commonwealth; and
- Develop significant technologies necessary for these advances.
Treasury was recently awarded a $2.5 million grant from the Pennsylvania Energy Development Authority (PEDA), to be combined with $10 million in additional investment capital from Treasury, to create a form of a public-private partnership, making $12.5 million available to support clean energy projects. Treasury, by law, is required to invest in a prudent manner, following the prudent person investment standard. Every project that Keystone Green supports will be subjected to a vigorous analysis to confirm the fiscal soundness of Treasury’s investment.
Treasury and DEP will engage a third party administrator with relevant experience and expertise to oversee the daily activities of Keystone Green. The administrator, who has not yet been selected, will also assist the agencies in developing additional sources of capital for investments and projects.
Several states including Connecticut, New York, California, Rhode Island, Nevada, and Hawaii have established green banks.