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February 26, 2014 / Sam Catherman

New Financing for Clean Energy – Clean Energy Victory Bonds

As climate change and rising fuel costs, especially natural gas prices, generate headline news, it becomes ever more apparent that we need to invest in renewable energy. Clean Energy Victory Bonds can play a crucial role in securing the financing necessary to shift our energy sourcing to cleaner options.  This bond evokes the spirit of one of the greatest fundraising efforts in our nation’s history. During World War II, over 80% of American households bought at least one victory bond, raising the equivalent of over $2 trillion in today’s dollars. Inspired by the efforts of previous generations, the victory bond is being rebooted to face the energy challenges of the 21st century. The Clean Energy Victory Bond would support solar, wind, second generation biofuels, and energy efficiency programs needed to build the clean U.S. economy that the times require.

Green America CEO and President Alisa Gravitz speaks at a briefing on Capitol Hill, Feb 24, 2014.

Green America CEO and President Alisa Gravitz speaks at a briefing on Capitol Hill, Feb 24, 2014.

Americans are increasingly aware of just how large a challenge climate change poses to our communities, as well as the role of fossil fuels in creating this global crisis. Fortunately, the shift from dirty energy to clean sources is well underway. For example, in 2013, a new solar energy system was installed every four minutes. By the beginning of 2014, the US had installed 12 gigawatts of solar capacity, producing as much energy as 14.5 coal-fired power plants. Wind power in the United States has been rapidly increasing as well, with over 14.2 gigawatts of capacity installed since 2012. According to the American Wind Energy Association, the projects currently under construction have the potential to power 3.5 million American households, or all the homes in Iowa, Oklahoma, and Kansas combined.

Financing for clean energy like wind and solar complements these observed increases in capacity. Annual solar installation, both residential and commercial, has grown by more than 1,600% since the Investment Tax Credit was implemented in 2006. Funding for large-scale solar projects announced in 2013 reached $13.6 billion, up from $8.7 billion the previous year. Similarly, the US Wind industry has attracted nearly $90 billion of private investment into new infrastructure over the past five years. The Production Tax Credit has been instrumental in encouraging this growth – in December of 2012, wind producers installed 5.5 gigawatts of capacity as the expiration of the PTC neared.  Both wind and solar energy employ significant sections of the American workforce. Wind power currently employs more than 75,000 Americans, and for the first time ever, the US solar industry now employs more workers than the US auto manufacturing industry. [1]

While this growth is monumental in its own light, it still pales in comparison to the portion of our energy mix that fossil fuels provide. From 2002-2008, traditional fossil fuels received $70.2 billion of federal subsidies, while renewables received just $12.2 billion over the same time period. Legislators allow federal incentives like the Production Tax Credit to expire and then retroactively reinstate them, creating uncertainty in renewable energy markets. This limits growth in sectors like wind energy, and shifts support to more favorable countries like China and Germany.

The Clean Energy Victory Bond will protect the tax incentives essential to clean energy sources and energy efficiency initiatives, while simultaneously offering a reliable investment vehicle backed by the full faith and credit of the United States. By fostering these sectors of the green economy, the bill stands to create more than 1 million high-paying jobs that cannot be shipped overseas.

Thousands of Americans have already pledged to purchase the bonds once they become available, and you can too. You can also call your representative and urge him or her to support the bill once it is on the floor. We must work on both sides of the aisle to reduce our dependence on dirty, imported fossil fuels, create jobs for millions of Americans, and protect our environment with clean, American-made energy sources. As Green America’s CEO and President Alisa Gravitz put it, “Clean energy is joyfully bi-partisan.” The only side you need to choose here is the one that leads the US into the future running on clean, safe, domestic power!


[1] U.S. Energy Information Administration and Solar Foundation

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