Op-Ed: Will DC’s Green Bank Be a Tool for Equitable Development, or Revolving Door Politics?
DC faces twin crises: socioeconomic inequality and climate change. With the passage of the Clean Energy DC Omnibus Act of 2018 — the most ambitious climate bill in the United States—DC could potentially have a way to start solving both. A fully-funded and operational Green Bank could advance 100% clean energy while lowering energy bills and securing healthier homes and communities for everyone and especially low-income and vulnerable populations.
To be effective, the Green Bank needs a responsible, ambitious board that represents the people. Three of the Mayor’s current nominees do not clear that bar. Instead of bringing expertise and civic interest, their selection appears to be based on connections, business interests, and politicking. Their selection to the Board would be a breach of the public trust and would undermine the mission of the Green Bank from the very start.
How We Got Here
In December of 2018, DC passed the most ambitious climate bill in the country, committing the District to 100% renewable energy by 2032, more efficient buildings, electric transportation, green jobs initiatives, and additional funding to bring to life the Green Financing Authority, or DC’s Green Bank — an initiative signed into law by Mayor Bowser in July 2018.
Green banks are designed to leverage public funds to attract private investment in clean energy, low-carbon technologies, and sustainability projects through loans, bonds, and other financing mechanisms. DC is not the first place to use this concept to reach clean energy goals. States like New York, Connecticut, and California have all used green banks to attract the capital they need to implement low-carbon solutions unique to their national and local contexts. Even our neighbors in Montgomery County have one.
Why are Green Banks so popular? Because they are effective. For example, reporting from the Coalition for Green Capital shows that through July of 2018, the Green Bank Network invested $11.8 billion at a ratio of $2.60 for every $1 invested to support projects that avoided 25 million metric tons of CO2 emissions.
Back to DC: By 2025, because of the Clean Energy Act, the Green Bank will have $105 million in public funds at its disposal to deploy clean energy across all eight wards. A study completed by the Coalition for Green Capital for the District Department of Energy and Environment (DOEE) found that DC’s Green Bank would attract $5 in private investment for every $1 of taxpayer money spent. Because Green Bank capital is recycled for other projects and public money can leverage private investment multiple times, the lifetime impact of $70 million would exceed the $350 million of the private investment it attracts. This is a substantial opportunity to build an economy in DC that is non-extractive and for everyone.
What We’re Fighting For
Envision a clean energy future for DC where economic and racial justice are front and center. Communities across all eight wards have equal access to the myriad benefits of clean energy and sustainability. Everyone- the wealthy, the unemployed; renters, homeowners, hospitals, affordable housing providers, small business owners- everyone has lower electricity bills because the Green Bank prioritizes lending to those with the highest barriers to access. There are more clean energy projects across the city that create jobs that don’t require a college degree, leading to higher levels of employment and opportunities for apprenticeships for high schoolers, those in a career transition, and even seniors who still want to work. Neighborhoods are stronger and overall costs of living lower.
DC’s Green Bank can be a vital tool to realize this vision. However, this future is not guaranteed. The Board that is nominated to lead the Green Bank coordinates with DOEE to determine the programs and financing the Bank offers — and as a result, the constituencies that stand to benefit most. The Board’s selection, therefore, will determine whether the DC Green Bank is designed to truly serve our communities. We need to demand our leaders ensure DC’s Green Bank Board prioritizes low-income and vulnerable families in the District and is accountable to DC’s communities, not to big developers and corporate interests.
On Monday May 20th, the District Council will hold a public hearing on the seven nominees put forward by the Mayor to fill the roles of the Green Bank Board. Per legislation, those seats are to be filled by:
- 2 individuals with financial institution experience;
- 3 individuals with clean energy experience;
- 2 individuals with affordable housing/community development experience.
Ahead of the public hearing scheduled for May 20, 2019, on behalf of 350.org and eight groups in the District — Chesapeake Climate Action Network, Empower DC, the DC Consumer Utility Board, Interfaith Power & Light of. DC, Maryland, and Virginia, DC Statehood Green Party, Green Drinks DC, and the DC Democratic Socialists of America’s Energy Democracy Working Group— I am writing to express concerns regarding the ethics and experience of three of the Mayor’s nominees. Here’s why they concern me — and why they should concern you, too:
Priya Jayachandran, nominated for affordable housing role
Jayachandran, now President of the National Housing Trust, led the Department of Housing and Urban Development’s (HUD) Multifamily Program at the time an Office of Inspector General (OIG) report found faulty loan underwriting — over $30 million worth of loans — by Program staff that contributed to the default of affordable housing projects across the country. Specific issues include, but are unfortunately not limited to, HUD approving loans where lenders overstated property value to get higher loan amounts; failure to enforce critical repair requirements valued at upwards of $1 million that caused health and safety concerns; and not checking lender market analysis, which resulted in higher rents for affordable housing tenants than actually necessary.
The District’s current development policies have created a severe affordable housing crisis that has caused nearly one in five children in DC to live in severe housing hardship. As we consider her nomination, we must ask: How did Jayachandran grow from this experience? What lessons did she learn that will ensure her leadership on the Board will not further contribute by putting small business owners, affordable housing providers, and residents in jeopardy with risky loans for clean energy projects that are meant to lower their costs of living?
Edward Hubbard, nominated for the clean finance role:
Hubbard is a lobbyist at the ‘Renewable Fuels Association (RFA)’- an ethanol lobby. Research from groups including the National Wildlife Federation, Yale University, and the Associated Press, have noted the severe environmental issues tied to ethanol: the destruction of wildlife habitat and species; reduced fuel efficiency; and high levels of air pollution, including carbon emissions due to land use change associated with biofuel production. Further, Hubbard does not have substantive experience in renewable energy financing or policies. He is a poor choice for the Board’s “clean energy” position particularly given the controversial nature of ethanol as a “clean” fuel source. If a person with ties to the ethanol industry sits on the Board, what will stop him from privileging investments in ethanol-based projects that claim to reduce transportation emissions, for example, rather than investing in the charging station infrastructure we need to meet the city’s transportation electrification targets?
Todd Monash, nominated for the clean finance role:
Monash lacks experience in green energy and has spent his career working for financial institutions unrelated to green financing. Additionally, Mr. Monash’s wife owns Monash Advisory Firm, which provides political representation for different companies (wastewater, transportation, etc.) around the District. We are concerned that this relationship, in addition to his experience being predominantly focused on business loans, could mean access to business, commercial, and industry networks that could lead to an over-representation of commercial loans over Low and Middle Income supported programs in the Green Bank.
As administrators of Green Bank financing and loans — funded through District resident tax dollars — it is imperative that Green Bank Board members uphold the highest level of ethics and accountability. It is equally important that Board members bring expertise to effectively meet our goals to address climate change and pollution in the District, while promoting social and economic equity for District residents.
How you can help
Call the members of the Transportation and Environment Committee. Tell them you demand Green Bank Board members that uphold the highest level of ethics and integrity and that have the experience to ensure all DC residents benefit from a 100% clean energy future.
- Chairperson Mary Cheh: (202)-724–8062
- Councilmember Brandon Todd: (202)724–8052
- Councilmember Charles Allen: (202)724–8072
- Councilmember Jack Evans: (202) 724–8058
- Councilmember Kenyan McDuffie: (202) 724–8028.
Sign on your organization, or as an individual, to our letter to the Council drawing their attention to the concerns over ethics, experience, and industry influence. Email chelseahodgkins@gmail.com with the name of your organization to view the letter and sign on.
It’s never too late to hold our government and public institutions accountable. This is an opportunity to take a stand against revolving door politics that have, for too long, upheld corporations and created widening inequalities. It’s time to change that. Will you join us?
