Title
Presentation and Possible Action to Support the Establishment of the Climate Investment Center
Recommended Action
I move that Council support the establishment of a New Mexico Climate Investment Center, for the purpose of assisting the State of New Mexico in meeting its climate goals through the receipt of appropriate federal funds earmarked for green banks to support clean energy and other climate and equity related investments.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
During the most recent NM State Legislative Session, Los Alamos County Council supported many environmentally focused bills including SB169, Climate Investment Center Act. The Climate Investment Center is a climate-focused financial platform, investment fund, that utilizes public money to attract private sector money for investments in projects that boost equity and reduce greenhouse gas emissions, typically where other sources of financing are not available. It is known as a green bank, not a deposit-taking bank but an investment fund, with the opportunity to access some of the $27 billion funding in the Inflation Reduction Act allocated for green banks. Green banks are a proven model with 23 similar funds in 17 states. With a cumulative investment in 2021 of $2.6 billion of public funds, they created $10 billion in total investments in hard-to-finance projects.
Establishing the Climate Investment Center is necessary and must be operational to qualify for Inflation Reduction Act (IRA) funds earmarked for “green banks.” New Mexico does not currently have a financial institution that fits into EPA’s definitions for use of these funds. Creating the Climate Investment Center will unlock access to the IRA funds to maximize reduction in greenhouse gas emissions, reduce energy costs for low-income, disadvantaged and tribal communities, enhance green job creation, accelerate climate resiliency measures and support economic growth measures, and support economic growth.
The Climate Investment Center will help the state’s climate action goals and community needs, focusing on: Providing direct benefits for low-income, disadvantaged, and tribal communities and priority projects that reduce greenhouse gas emissions and other pollutants; Mitigating default risk from low-credit borrowers to help customers secure long-term, low interest loans for energy efficiency and solar, leading to immediate utility bill savings; Increasing adoption of mature, commercially viable technologies at a variety of scales, from wind farms to rooftop solar; Aggregating small residential and commercial projects to meet a sufficient scale to attract private capital and co-invest or lend directly to projects with marginal economics; Mobilizing greater investment because, unlike subsidies and grants, financing is repaid; Closing financial gaps and strengthening existing financial institutions’ ability to lend to non-traditional borrowers.
Representatives from the Coalition of Sustainable Communities New Mexico will be soliciting support for this effort. Their presentation is shown in Attachment A. Attachment B provides an executive summary regarding the establishment of a Climate Investment Center and Attachment C is SB169 Senate Committee Substitute bill.
Attachments
A - Climate Investment Center Presentation
B - Climate Investment Center Executive Summary
C - SB169 Climate Investment Center Senate Committee Substitute Bill