public forum - environmental finance center · –promoting the benefits of green infrastructure...

FUTURE OF ENVIRONMENTAL FINANCE

Public Forum

May 5th, 2014

1:30-4:30 pm

at the UNC School of Government

Environmental Finance Center at the UNC School of Government Twitter: @EFCatUNC www.efc.sog.unc.edu #EnvironmentalFinance

School of Government A trusted resource for North Carolina’s public officials for more than 80 years

#EnvironmentalFinance

School of Government’s Mission

BUILDING GREAT COMMUNITIES


One Key to Great Communities

ENVIRONMENTAL FINANCE


www.efc.unc.edu

Future of Environmental Finance

Opening Remarks

Jeff Hughes

Director Environmental Finance Center

Albert and Gladys Hall Coates Distinguished Lecturer

School of Government, University of North Carolina at Chapel Hill

919 843 4956

[email protected]


mailto:[email protected]

Registered Participants


Warren Jake Wicker

Gladys Hall Coates Professor of Public Law and Government UNC School of Government Faculty for 48 Years


Perspectives on Environmental Finance

Panel 1

To submit a question or comment: • Pass your comment card to your right during

presentations • Tweet your question using #EnvironmentalFinance


Stan Meiburg Karen Massey Alfred Griffin Nancy McFarlane Lynn Broaddus

Stan Meiburg

Retired Deputy Regional Administrator U.S. Environmental Protection Agency Region 4


Sustainable Environmental Finance

Stan Meiburg


How Do We Make Environmental Finance Sustainable?

• Build a sensible business case

• The past is not coming back

• Build networks and alliances

• Identify common interests

• Quantify ecological services

• Increase financial literacy among environmental professionals

• Support each other


Karen Massey

Director Missouri Environmental Improvement and Energy Resources Authority


Alfred Griffin

President New York Green Bank


Nancy McFarlane


There is competition for capital in local government.

Funding by higher levels of

government is disappearing.

Local governments must find tools that will allow them to jointly fund environmental infrastructure.

Photo: Neuse River WWTP (Raleigh Public Record)


Financing needs to be innovative:

Can we capture savings from energy efficiency to fund infrastructure

upgrades?

Can we allow individual homes and businesses to finance on-site environmental improvements

through their utility bill?

Photo: LED Streetlights – Hillsborough Street (Cree, Inc.)

Photo: GI / LID (US EPA) #EnvironmentalFinance

Lynn Broaddus

Director, Environment Program The Johnson Foundation at Wingspread


Panel Discussion

To submit a question or comment:

• Pass a comment card to your right

• Tweet your question using #EnvironmentalFinance


Stan Meiburg Karen Massey Alfred Griffin Nancy McFarlane Lynn Broaddus

Andrew Sawyers

Director EPA Office of Wastewater Management


Challenges and Opportunities

from the Perspective of the CWSRFs

29

• Challenges

– Addressing critical wastewater infrastructure capital needs as funding

becomes increasingly scarce

– Promoting the benefits of green infrastructure solutions

– Building resiliency to extreme weather events

• Opportunities

– CWSRFs have powerful leveraging tools that can make additional

funding available for projects

• In addition to issuing bonds, the CWSRFs can provide credit enhancements

such as guarantees

– CWSRFs continue to actively advance green infrastructure and resiliency

• Funding projects that address these priorities

• Collaborating with other organizations


Rich Thorsten

Director of International Programs Water.org


$0 $100,000,000 $200,000,000 $300,000,000

Intl.Public

Intl.Private

DomesticPublic

DomesticPrivate

Hawley Truax

Program Officer for Environment Z. Smith Reynolds Foundation


Financials for FY 2013

Statement of Cash Flows

Balance Sheet

12/31/2013

Income Statement

Balance Sheet

12/31/2012


• Transparency and open dialogue

about finances helps.

• Diverse revenue streams matter.

• Hope is not a sustainable

fundraising strategy.

• Avoid undercapitalization.


Paul Meyer

Executive Director North Carolina League of Municipalities


Local Decisions = Strong Cities

• Flexibility

• No state level political agendas

• State incentives, not mandates

• Local conditions drive decisions

• Stable, pragmatic solutions


Strong Cities = Stronger NC

• Attractive, lower cost

• Well designed and grown

• Bolstered service efficiency

• Greater local economic future

• Prosperous NC


Mitch Gillespie

Assistant Secretary for the Environment NC Department of Environment and Natural Resources


N.C. Water and Wastewater Infrastructure Funding

Golden LEAF

Rural

Economic

Development

Center

Clean Water

Management

Trust Fund

Dept. of

Environment

and Natural

Resources

Dept. of

Commerce

• Capacity/

Planning

Grant

• Supplemental

Grants

• Economic

Infrastructure

Grants

• Wastewater

Infrastructure

Grants

Public Water

Supply • Drinking Water

State Revolving

Fund Loans

• General

Revolving Loans

• Technical

Assistance

Grants

• Emergency

Loans

• High Unit Cost

Grants

Construction

Grants and Loans • Clean Water

State Revolving

Fund Loans

• General

Revolving Loans

• Technical

Assistance

Grants

• Emergency

Loans

• High Unit Cost

Grants

Division of

Community

Assistance • CDBG

Infrastructure

Funds

Commerce

Finance Center • CDBG

Economic

Development

Funds

• Industrial

Development

Fund


N.C. Water and Wastewater Infrastructure Funding

Golden LEAF

Rural

Economic

Development

Center

Clean Water

Management

Trust Fund

Dept. of

Environment

and Natural

Resources

Dept. of

Commerce

Water and Wastewater

Infrastructure Funding

FEDERAL FUNDS

• State Revolving Fund (SRF) Loans

• Community Development Block

Grant-Infrastructure (CDBG-I)

Grants

STATE FUNDS

• General Revolving Loans

• Emergency Loans

• Technical Assistance Grants

• High Unit Cost Grants

Division of Water Infrastructure

Commerce

Finance Center • CDBG

Economic

Development

Funds

• Industrial

Development

Fund


Valerie Smith

Director of Corporate Sustainability Citi


Banking and Environmental Finance

Valerie Smith

Director, Corporate Sustainability

Citi

UNC, Future of Environmental Finance

May 5, 2014


What does banking have to do with the environment?

44

Highlight: In 2013, Citi

opened LEED (Leadership in

Energy and Environmental

Design) certified facilities in

Haiti, India, and Zambia.

Highlight: Citi reviewed

and advised clients on

environmental and social

risks in 443 transactions

in 2013.

Highlight: In 2013, Citi

directed the final $8.78

billion towards our ten-

year, $50 Billion Climate

Change Initiative, hitting our goal three years early.

Reducing the impacts of

our 12,000 facilities and

global supply chain

Managing environmental

and social risks

associated with client

transactions

Environmental &

Social Risk

Operations and

Supply Chain

Environmental

Finance

Directing financing to

industry-leading and

innovative environmental

investments


How big are the challenges and opportunities?

45 #EnvironmentalFinance

What are the keys to success?

46

Reclaimed water used for irrigation, cooling and industrial processes enables Raleigh and Cary to reduce water consumption.

Partners: Raleigh, Cary and State of North Carolina

Caithness Shepherd’s Flat Wind Project and Desert Sunlight Solar Project are the largest wind and solar projects in the world.

Partners: DOE and State of California

Warehouse for Energy Efficiency Loans (WHEEL) provides capital for state and utility energy efficiency loans to homeowners, and securitizes those loans for investors.

Partners: PA Treasury Dept, Energy Programs Consortium, DOE, and Renewable Funding

Partnerships between Citi and local, state and federal governments and NGOs

This combination of partnership, innovation, and tenacity will be key ingredients in

turning the “Clean Trillion” idea into a market reality.


Panel Discussion

To submit a question or comment:

• Pass a comment card to your right

• Tweet your question using #EnvironmentalFinance


Andrew Sawyers Rich Thorsten Hawley Truax Paul Meyer Mitch Gillespie Valerie Smith

Please Join Us After the Forum for a

Reception in the Atrium



public forum - environmental finance center · –promoting the benefits of green infrastructure...

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