Rep. Van Hollen Pushes For $50 Billion 'Federal Green Bank'

May 16, 2014 - 3:36 PM

Rep. Chris Van Hollen (D-Md.)

Maryland Democrat Rep. Chris Van Hollen (AP Photo)

(CNSNews.com) - Rep. Chris Van Hollen (D-Md.) is turning to the web to drum up support for the creation of a Federal Green Bank that would create $50 billion in debt in order to offer loans for clean energy projects.

In a video posted on YouTube this week for the Safe Climate Caucus, Van Hollen says even though several states have created their own “green banks”, the federal government still needs to get involved.

“Which is why we have introduced the Green Bank Act of 2014 to establish a Federal Green Bank as an independent, self-sustaining, not for profit, wholly-owned corporation of the United States,” Van Hollen says.

“The bank would be authorized to provide a comprehensive range of finance and support to qualifying clean energy and energy efficiency projects across the country.”

Under Van Hollen's legislation, the initial $10 billion is to be supported with the issue of “green bonds” from the Treasury Department. The bank will then have the ability to obtain another $40 billion from additional “green bonds” to be issued over the period of its charter.

Van Hollen first introduced this bill back in 2009, when it passed in the House but not the Senate.

Several states, including Connecticut and New York, have formed their own green banks. In the private sector, The Bank of America Corporation has recently issued “green bonds” in order to raise funds to finance renewable energy projects.