Conservation district urges committee to study public‑bank models alongside green‑bank options

Jennifer Byrne, district manager for the White River Natural Resources Conservation District, told the Senate Natural Resources & Energy Committee on Jan. 29 that S174’s study of green bank models should also examine public banking because the two tools serve complementary roles.

Byrne explained that green banks typically operate as financing programs that improve loan terms or share risk but do not hold deposits or create credit through lending. In contrast, Byrne said, a public bank accepts public deposits, uses them to create revolving credit tied to public priorities, and retains earnings to expand lending capacity over time. She cited North Dakota’s Bank of North Dakota as an example of a century‑old public bank that supports agriculture, student lending and disaster recovery and said a public bank could keep more public capital circulating inside Vermont.

Byrne also noted that Vermont already has a Local Investment Advisory Committee (LIAC) that can use up to 10% of the state’s average daily cash balance for local investment decisions and that LIAC’s experience could inform the design of green‑bank or public‑bank approaches.

Why it matters: The committee is considering S174, a study of green bank approaches; Byrne urged lawmakers to compare green‑bank programs with public‑bank structures that accept deposits and revolve capital over time—an approach she argued better matches long‑term conservation timelines.

What’s next: Byrne encouraged the committee to include conservation district perspectives and to consider how public deposits, local credit creation and advisory structures could be incorporated into any study of green bank options.