CEDA and the Green Bank

Last month, several executives from clean-tech companies, including Google and GE, wrote to President Obama, urging him to move forward on the creation of the Clean Energy Deployment Administration (CEDA) as outlined in the Senate's American Clean Energy Leadership Act, now under consideration.

Under the act, CEDA would be an autonomous agency lead by an administrator and staffed with financial experts, yet be affiliated with the Department of Energy. This affiliation would provide CEDA with valuable expertise in energy matters.

One of CEDA's main purposes is the funding of clean-energy projects, similar to a bank's function. ACELA provides CEDA with $10 billion in capitalization, but the goal is to increase this significantly -- to as much as $50 billion.

Congressman Chris Van Hollen (D. Md.) is among those calling for a separate Green Bank -- or Green Retrofit Bank -- as part of the proposed jobs bill. In a letter to President Obama, Van Hollen wrote, "A Green Bank could be capitalized on a one-time basis with $20 billion and never need another dime from government. With an annual budget of less than $200 million and several hundred employees, it could cause more than $200 billion in new private-sector investment, propel economic growth, and create more than 2 million good-paying jobs over the next three years."

In the meantime, Kentucky has created its own Green Bank for the purpose of funding clean-energy projects in the state. And other states are sure to follow as debate continues in Washington, D.C.

If you'd like to more information about the Green Bank, visit CoalitionfortheGreenBank.com.

Another informative site is TheEnergyCollective.com, which offers a wealth of information on clean-energy initiatives.