Bankers urge informal partnerships rather than a standalone Green Bank; treasurer offers to run formal study

Witnesses told the Natural Resources & Energy committee on Jan. 27 that state policymakers can explore climate and clean-energy financing without immediately creating a standalone Green Bank.

Representing the Vermont Bankers Association, Delia said the association “does not support the general concepts of a state bank or green bank as a stand alone entity,” but that existing public and private partners — credit unions, the Vermont Housing Finance Agency, the bond bank and others — routinely collaborate and could address gaps through directed conversations rather than a funded legislative study.

Delia said capital itself is often not the primary market problem; project readiness and underwriting circumstances can be limiting factors. She argued the state could save money and time by convening relevant parties to identify gaps and opportunities, and by using existing programs to draw down federal funds more quickly than building a new institution.

Deputy Treasurer David Sher told the committee the treasurer’s office would be “certainly happy to conduct a study as outlined in the bill” if the legislature approved a one-time appropriation to hire staff and build capacity. Sher referenced a January 2024 climate infrastructure financing study filed by the treasurer’s office for background and said he would return with more detail on projects financed under the office’s current 2.5% allocation for climate infrastructure.

Committee members asked whether the treasurer’s office could instead facilitate informal conversations among existing lenders and public partners, and several members said that approach might suffice. Sher said the office could participate in such convenings but cautioned that running a formal study without appropriation could be “a little squishy.”

No formal action was taken on a bill to establish a Green Bank; members discussed next steps, including inviting additional stakeholders and clarifying the scope and cost of any formal study or alternative convening.