Can I Sign Connecticut Banking Presentation

Can i industry sign banking connecticut presentation simple

and having heard about that we are gonna now get to hear about the Green Bank movement by Brian Garcia and carry on you thank you and good afternoon Connecticut Green Bank simple promise of increasing affordability and accessibility to green energy has evolved into a greater commitment to our stakeholders we believe that everything we do we do to help people thrive in businesses grow we do it in the interest of achieving inclusive prosperity not only within the country but around the world Connecticut recognized there will never be enough public dollars to meet its aggressive energy and climate goals the public-private investment model we have pioneered uses scarce public dollars to attract multiples of private investment and is creating a thriving marketplace for green energy in the state Connecticut has the highest energy cost in the country which affects our ability to attract and retain businesses and places an undue energy burden on residents and communities our state's budget has been under pressure for years making a grant based model unsustainable so the Green Bank sought out in forged public-private partnerships to support green energy financing we focus our limited funds on gaps in the market where the private sector has not yet offered a viable solution for every dollar the Green Bank puts in there is now nearly ten dollars of private investment and because of the efficient use of public funds we recently surpassed a billion dollars of total investment in Connecticut's economy and in the process we continue to stabilize energy costs reduce greenhouse gas emissions and create the jobs our state so desperately needs now here's Terry O'Neill one of our sector directors thanks Brian here are two examples of our work for businesses our commercial is clean energy or CPAs program has broken new ground we've partnered with 128 towns and cities by saying green energy improvements are a public good and can be repaid on your property tax bill over 150 businesses have taken advantage of see pace and will save nearly two hundred million dollars when we started in 2013 the capital providers didn't understand see pace so we stepped in and used all public funds from a regional cap-and-trade program last year we turned see pace into a 100 million dollar public-private partnership that now uses $9 of private capital for every $1 of public capital and we've worked with programs across the country to help them you see pace to fuel their own economic development Brian talked about inclusive property of prosperity and here's another great example the issue of energy and climate change is actually linked to income job opportunities health and resiliency for our most vulnerable citizens high energy costs are forcing them to trade off paying utilities with things like food medicine or housing we knew we need to do do more to bring prosperity and reach for all so we partnered with paws again a solar company from Louisiana already serving lower-income families they combined a solar lease with an energy efficiency package that makes a big dent in families energy expenses one of our customers a single mother from Bridgeport was paying over $250 a month for electricity she was able to go solar a dream of hers and drop her cost under $100 a month and she was so inspired by her experience she now works for paws again going into homes like hers telling her story to families about their right to take back control and more than survive but thrive and I don't think you could find a better ambassador the Connecticut Green Bank has sparked a green Bank movement we've seen our model applied in New York New Jersey Rhode Island in Montgomery County Maryland with more in the works including Washington DC and on a national scale a senator from Maryland in a congresswoman from Connecticut will be introducing the Green Bank Act before Congress in the coming weeks we've also presented our best practices in China India and South Africa in across Latin America creating the nation's first green Bank took the audacity and vision of Connecticut's political leaders Governor Malloy in the bipartisan support of the state's General Assembly throughout our journey our true purpose continues to reveal itself yes we believe everything we do we do to help people thrive and businesses grow but we've come to appreciate that we innovate to transform lives in our eyes the ultimate measure of success for the green bank will be how well we address the adaptive challenge of providing society a gateway to inclusive prosperity thank you very much here in Massachusetts which has used a subsidy strategy to boost solar and wind power alternative energies and here companies come to your front door and knock on it and say we can put solar panels on your roof will own them you pay nothing down and we'll guarantee savings of X percent in your monthly electricity bill so that's the private market already very aggressively marketing to everybody in the state or at least everybody who has a home that a satellite photo shows would be good for solar energy so why would we need a green Bank given that the private market is already so involved and aggressive here so professor Osborn it's an honor so it's a great question I think when you look at and you compare States and we do it quite a bit when you look across the region and you look at the incentive structure here in the state of Massachusetts they're doing a lot of deployment in rooftop solar which is great they're by far leading the region you can take a look at any metric watts per capita they're doing great but when you look at the utilization of public funds that are helping to attract that private investment in your economy and you start taking a look at metrics like dollars of incentives per watt deployed what you can see across the region is that Connecticut is comparatively the same as Massachusetts on a watts per capita basis but we are getting more out of the use of our public funds so we're now I think an eight times multiple in the state of Connecticut in terms of utilizing rate payer funds versus Massachusetts so what we're trying to do is to create a market environment where there are less and less public incentives or rate payer incentives going into the market and yet at the same time create a marketplace for more private investment to come in so that's definitely a part of what we do but to answer further provide an answer on another product so the leasing product that you've talked about is a great example of financial innovation no money upfront from a customer there immediately cashflow positive they're saving on their electricity bill but we found an entrepreneur several years ago who had a different idea for financial innovation which was let's help the homeowner realize all the value that solar PV offers they can monetize the federal tax credit themselves we ended up investing in this company it's a company formed by an entrepreneur who comes out of this institution Sara Raasch she's from Sun gauge financial and she came to us with the proposition of let's build a solar loan together so that we can help finance solar on homes and what was great about that is we ended up investing six million dollars in Sun gauge in this loan product in Connecticut we utilized all our tools in the Green Bank toolbox we had a loan loss reserve we had an investment of subordinated debt we ended up generating six million dollars worth of loans we sold a million dollars of those loans through the crowd so we sold a million dollars to California citizens in California who are buying Connecticut loans we can do that in Connecticut so we're able to get a million dollars back we ended up selling the rest to a community development financial institution but what's great about that story is that Sarah has now built a product that attracted a hundred million dollars from a credit union that's said to Sarah that's great what you did in Connecticut we don't need that public sector credit enhancement anymore what we believe in your product we want you to go across this country and offer that same product in California Texas Florida New Jersey New York Massachusetts we're going to give you a hundred million dollars to do it so for us that was an example where there may have been a gap in the marketplace and now we've unlocked investment across the country I guess one other point I would make is there are those are you know mainstream companies who are marketing to mainstream customers another role of the Green Bank is to serve underserved markets and not all of all of your private companies are gonna knock on the doors and all of your neighborhoods or all your small businesses that don't have a great time getting credit and so that's a really important role we see that we play where the private sector isn't yet playing and we can show the way shine the light attract them and then get out of the way because you really piqued my interest with the example you gave on your your ambassador and so I can say more about how the this public role in stimulating the private market can be done in a way that pushes them toward more equity and sensibility about high housing costs and housing vulnerability sure and you know Connecticut's a very unequal state and many folks may not know that but and when we first what we do is we share the data and you know how big a population whether its renters or low-income homeowners we have a third of our low income res it's on their own home and there and the other thing that's interesting about Connecticut is that income and credit quality don't correlate so there's a lot of good investable homeowners who are lower-income so we've done a lot of market analysis a lot of data analysis and we've made that freely available we run webinars and we tell solar companies and energy efficiency companies about that for like years we've been doing that but in the case of positon we went out and recruited them because we knew they focused on this market and it's great to tell all your private companies out there but we also know to serve underserved markets you also need focus folks who are gonna focus on those markets and so we do that both in the affordable multi-family space and in the case of rooftop solar and so partnership forging we're willing to forge partnerships and attract companies into markets that they might not otherwise be in you know here in the application that currently two-thirds of your budget of revenues for 2017 are coming from ratepayers what's the trajectory on that both history and looking forward you see that continue to be the vast majority of your revenues or what's the yeah so currently we have two major revenue sources that come in one is a system benefit fund when the state deregulated electricity in the late 90s it created a renewable energy investment fund that's about twenty seven million dollars a year that's come into the state the second is we receive cap and trade allowance proceeds from Reggie the Regional Greenhouse Gas Initiative that's about three million dollars so it's about thirty million dollars a year that comes in and the way our predecessor used those funds is it provided those funds to projects as grants and the leverage was low for every dollar we put out in terms of using those funds that attracted a dollar of private investment so the audacity of the legislature to change that model was we are now becoming a part of capital structures in what's what that's helping us do is leverage every dollar to eight more dollars into the economy but it is those dollars that help provide the support to us but what we've also been able to do over the course of the five years is we've gone from that zero based budget of money in money money out to in fact building a balance sheet for the organization so we've now built a really strong financial position that now allows us to go out and talk to private banks so in our application we talked about a moment being when a Bank of America came to us and said we believe in what you're doing we want to lend to the Green Bank because you're delivering results and because you have a strong balance sheet that's where we now take the next step in our model because we're we're now moving to private investors investing in the state of Connecticut just just a quick note on that to follow because you did note that B of a loan that was a 1% interest loan who were you working with specific was that a specific type of yeah so we were at an energy efficiency conference about a year ago and one of the leaders of the community of development arm of B of A came up to us after that a plenary session on the Green Bank movement and said bammel should be investing in green banks and we ended up setting a meeting he's also partnering with the catalytic climate fund which is also a part of Bank of America it's the climate change side of the the organization so between the two we met with them they were impressed with what we're doing and we're now working on term sheets and and it's kind of a pivot of you know community development is often thought of as housing and things like that health services green banks are a form of Community Development getting at those equity and justice issues so it was it was a really cool moment I can see that you've spread your message across the United States and into the world and how about into the next election in Connecticut so you know we have bipartisan support of the Connecticut General Assembly and we just issued a press release yesterday on it and it was great to see the support across the aisles in terms of what we're doing you could imagine public-private partnerships and leveraging limited public funds to mobilize private investment that resonates to everyone and I just think the legislature recognizes what we're doing Republicans and Democrats alike so we feel good about that now the state is in a difficult budget periods right they have to manage a forty billion dollar two-year budget we have a five billion dollar deficit so I think you know as we look at what we do we would never envy the position that they're in having to make those sorts of decisions of you know reducing support for municipalities you know reducing services reducing funds to bury the poor you know so so we are a part of delivering a different solution to the state of Connecticut thank you [Applause] you