Domenici Introduces Clean Energy Investment Bank Legislation
March 6, 2008
05:44 PM
WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today introduced legislation that will establish a government corporation specifically dedicated to facilitate investment in clean energy projects.
Domenici’s Clean Energy Investment Bank of the United States will operate in a fashion similar to the U.S. Export-Import Bank and the Overseas Private Investment Corporation, but will focus on domestic investment activities to encourage financing for clean energy projects. The goal of the bank will be to reduce the overall cost of clean energy projects in order to facilitate their commercialization.
“I have long advocated for a balanced approach toward meeting our energy challenges. If we have any hope of reducing our dependence on foreign oil and meeting the growing challenge of global climate change, we must develop strong clean energy technologies in the United States. The legislation I introduced puts those words into action by establishing a government-backed Clean Energy Bank to bring these technologies to market. The time to act is now,” Domenici said.
The Clean Energy Investment Bank will operate by taking responsibility for management of the Department of Energy’s loan guarantee program, and will have authority to issue loans, loan guarantees, equity investments, and insurance products. The Bank is modeled after the Import-Export bank and will require similar funding authorization.
“It seems to me that we should provide a level of financial support toward domestic energy diversification that is at a minimum equal to what we provide to U.S. companies that invest overseas. Since traditional approaches have fallen short of what is needed to meet increasing demands for energy, this innovative approach involving both government and private markets is a terrific solution,” Domenici said.
“The reality is that Congress is likely to have a debate on climate change that will fall largely on partisan grounds this year. The legislation I’m introducing today breaks through that divide and would ensure that we are able to pass a bill that will help us make progress on reducing carbon emissions,” he continued.
Among the cosponsors of the Clean Energy Investment Bank legislation are Senators Mary Landrieu (D-La.), Lisa Murkowski (R-Alaska), Senator Mel Martinez (R-Fla.), Senator Jim Bunning (R-Ky.), Senator Larry Craig (R-Idaho), Senator Lamar Alexander (R-Tenn.) and Senator Elizabeth Dole (R-N.C.).
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