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General Assembly Raised Bill No. 179
February Session, 2020
LCO No. 763
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING TH E CONNECTICUT GREEN BANK.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (d) of section 16-245n of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2020): 3
(d) (1) (A) The Connecticut Green Bank is hereby established and 4
created as a body politic and corporate, constituting a public 5
instrumentality and political subdivision of the state of Connecticut 6
established and created for the performance of an essential public and 7
governmental function. The Connecticut Green Bank shall not be 8
construed to be a department, institution or agency of the state. 9
(B) The Connecticut Green Bank shall (i) develop separate programs 10
to finance and otherwise support clean energy investment in residential, 11
municipal, small business and larger commercial projects and such 12
others as the Connecticut Green Bank may determine; (ii) support 13
financing or other expenditures that promote investment in clean 14
energy sources in accordance with a comprehensive plan developed by 15 Raised Bill No. 179
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it to foster the growth, development and commercialization of clean 16
energy sources and related enterprises; and (iii) stimulate demand for 17
clean energy and the deployment of clean energy sources within the 18
state that serve end use customers in the state. 19
(C) The Clean Energy Finance and Investment Authority shall 20
constitute a successor agency to Connecticut Innovations, Incorporated, 21
for the purposes of administering the Clean Energy Fund in accordance 22
with section 4-38d. The Connecticut Green Bank shall constitute a 23
successor agency to the Clean Energy Finance and Investment Authority 24
for purposes of administering the Clean Energy Fund in accordance 25
with section 4-38d. The Connecticut Green Bank shall have all the 26
privileges, immunities, tax exemptions and other exemptions of 27
Connecticut Innovations, Incorporated, with respect to said fund. The 28
Connecticut Green Bank shall be subject to suit and liability solely from 29
the assets, revenues and resources of said bank and without recourse to 30
the general funds, revenues, resources or other assets of Connecticut 31
Innovations, Incorporated. The Connecticut Green Bank may provide 32
financial assistance in the form of grants, loans, loan guarantees or debt 33
and equity investments, as approved in accordance with written 34
procedures adopted pursuant to section 1-121. The Connecticut Green 35
Bank may assume or take title to any real property, convey or dispose 36
of its assets and pledge its revenues to secure any borrowing, convey or 37
dispose of its assets and pledge its revenues to secure any borrowing, 38
for the purpose of developing, acquiring, constructing, refinancing, 39
rehabilitating or improving its assets or supporting its programs, 40
provided each such borrowing or mortgage, unless otherwise provided 41
by the board or said bank, shall be a special obligation of said bank, 42
which obligation may be in the form of bonds, bond anticipation notes 43
or other obligations which evidence an indebtedness to the extent 44
permitted under this chapter to fund, refinance and refund the same and 45
provide for the rights of holders thereof, and to secure the same by 46
pledge of revenues, notes and mortgages of others, and which shall be 47
payable solely from the assets, revenues and other resources of said 48
bank and such bonds may be secured by a special capital reserve fund 49 Raised Bill No. 179
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contributed to by the state. The Connecticut Green Bank shall have the 50
purposes as provided by resolution of said bank's board of directors, 51
which purposes shall be consistent with this section. No further action 52
is required for the establishment of the Connecticut Green Bank, except 53
the adoption of a resolution for said bank. 54
(D) In addition to, and not in limitation of, any other power of the 55
Connecticut Green Bank set forth in this section or any other provision 56
of the general statutes, said bank shall have and may exercise the 57
following powers in furtherance of or in carrying out its purposes: 58
(i) To have perpetual succession as a body corporate and to adopt 59
bylaws, policies and procedures for the regulation of its affairs and the 60
conduct of its business; 61
(ii) To make and enter into all contracts and agreements that are 62
necessary or incidental to the conduct of its business; 63
(iii) To invest in, acquire, lease, purchase, own, manage, hold, sell and 64
dispose of real or personal property or any interest therein; 65
(iv) To borrow money or guarantee a return to investors or lenders; 66
(v) To hold patents, copyrights, trademarks, marketing rights, 67
licenses or other rights in intellectual property; 68
(vi) To employ such assistants, agents and employees as may be 69
necessary or desirable, who shall be exempt from the classified service 70
and shall not be employees, as defined in subsection (b) of section 5-270; 71
establish all necessary or appropriate personnel practices and policies, 72
including those relating to hiring, promotion, compensation and 73
retirement, and said bank shall not be an employer, as defined in 74
subsection (a) of section 5-270; and engage consultants, attorneys, 75
financial advisers, appraisers and other professional advisers as may be 76
necessary or desirable; 77
(vii) To invest any funds not needed for immediate use or 78
disbursement pursuant to investment policies adopted by said bank's 79 Raised Bill No. 179
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board of directors; 80
(viii) To procure insurance against any loss or liability with respect to 81
its property or business of such types, in such amounts and from such 82
insurers as it deems desirable; 83
(ix) To enter into joint ventures and invest in, and participate with 84
any person, including, without limitation, government entities and 85
private corporations, in the formation, ownership, management and 86
operation of business entities, including stock and nonstock 87
corporations, limited liability companies and general or limited 88
partnerships, formed to advance the purposes of said bank, provided 89
members of the board of directors or officers or employees of said bank 90
may serve as directors, members or officers of any such business entity, 91
and such service shall be deemed to be in the discharge of the duties or 92
within the scope of the employment of any such director, officer or 93
employee, as the case may be, so long as such director, officer or 94
employee does not receive any compensation or financial benefit as a 95
result of serving in such role; 96
(x) To enter into a memorandum of understanding or other 97
arrangements with Connecticut Innovations, Incorporated, with respect 98
to the provision or sharing of space, office systems or staff 99
administrative support, on such terms as may be agreed to between said 100
bank and Connecticut Innovations, Incorporated; and 101
(xi) To do all other acts and things necessary or convenient to carry 102
out the purposes of said bank. 103
(E) (i) The Connecticut Green Bank may form one or more 104
subsidiaries to carry out the purposes of said bank, as described in 105
subparagraph (B) of subdivision (1) of this subsection and subparagraph 106
(A)(ii) of subdivision (2) of this subsection, and may transfer to any such 107
subsidiary any moneys and real or personal property of any kind or 108
nature. Any subsidiary may be organized as a stock or nonstock 109
corporation or a limited liability company. Each such subsidiary shall 110
have and may exercise such powers of said bank, as set forth in the 111 Raised Bill No. 179
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resolution of the board of directors of said bank prescribing the 112
purposes for which such subsidiary is formed, and such other powers 113
provided to it by law. 114
(ii) No such subsidiary of said bank shall be deemed a quasi-public 115
agency for purposes of chapter 12 and no such subsidiary shall have all 116
the privileges, immunities, tax exemptions and other exemptions of said 117
bank. In no event shall any such subsidiary have the power to hire or 118
otherwise retain employees. The governing documents of any such 119
subsidiary shall provide for the dissolution of such subsidiary upon the 120
completion of the purpose for which such subsidiary was formed. Each 121
such subsidiary may sue and shall be subject to suit, provided its 122
liability shall be limited solely to the assets, revenues and resources of 123
the subsidiary and without recourse to the general funds, revenues, 124
resources or any other assets of said bank. Each such subsidiary is 125
authorized to assume or take title to property subject to any existing lien, 126
encumbrance or mortgage and to mortgage, convey or dispose of its 127
assets and pledge its revenues to secure any borrowing, provided each 128
such borrowing or mortgage shall be a special obligation of the 129
subsidiary, which obligation may be in the form of bonds, bond 130
anticipation notes and other obligations, to fund and refund the same 131
and provide for the rights of the holders thereof, and to secure the same 132
by a pledge of revenues, notes and other assets and which shall be 133
payable solely from the revenues, assets and other resources of the 134
subsidiary. The Connecticut Green Bank may assign to a subsidiary any 135
rights, moneys or other assets it has under any governmental program. 136
No subsidiary of said bank shall borrow without the approval of the 137
board of directors of said bank. 138
(iii) Each such subsidiary shall act through its board of directors or 139
managing members, at least one-half of which shall be members of the 140
board of directors of said bank or their designees or officers or 141
employees of said bank. 142
(iv) The provisions of section 1-125 and this subsection shall apply to 143
any officer, director, designee or employee appointed as a member, 144 Raised Bill No. 179
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director or officer of any such subsidiary. Any such person so appointed 145
shall not be personally liable for the debts, obligations or liabilities of 146
any such subsidiary as provided in section 1-125. The subsidiary shall, 147
and said bank may, save harmless and indemnify such officer, director, 148
designee or employee as provided by section 1-125. 149
(v) The Connecticut Green Bank, or such subsidiary, may take such 150
actions as are necessary to comply with the provisions of the Internal 151
Revenue Code of 1986, or any subsequent corresponding internal 152
revenue code of the United States, as amended from time to time, to 153
qualify and maintain any such subsidiary as a corporation exempt from 154
taxation under said code. 155
(vi) The Connecticut Green Bank may make loans to each such 156
subsidiary from its assets and the proceeds of its bonds, notes and other 157
obligations, provided the source and security for the repayment of such 158
loans is derived from the assets, revenues and resources of the 159
subsidiary. 160
(2) (A) (i) The Connecticut Green Bank may seek to qualify as a 161
Community Development Financial Institution under Section 4702 of 162
the United States Code. If approved as a Community Development 163
Financial Institution, said bank would be treated as a qualified 164
community development entity for purposes of Section 45D and Section 165
1400N(m) of the Internal Revenue Code. 166
(ii) The Connecticut Green Bank, through one or more of its 167
subsidiaries, may seek to qualify as an eligible borrower of federal 168
funding or a recipient of benefits under federal programs, including, but 169
not limited to, funding or credit enhancement benefits from the United 170
States Department of Agriculture under the Rural Electrification Act of 171
1936, 7 USC 901 et seq., as amended from time to time. 172
(B) Before making any loan, loan guarantee, or such other form of 173
financing support or risk management for a clean energy project, the 174
Connecticut Green Bank shall develop standards to govern the 175
administration of said bank through rules, policies and procedures that 176 Raised Bill No. 179
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specify borrower eligibility, terms and conditions of support, and other 177
relevant criteria, standards or procedures. 178
(C) Funding sources specifically authorized include, but are not 179
limited to: 180
(i) Funds repurposed from existing programs providing financing 181
support for clean energy projects, provided any transfer of funds from 182
such existing programs shall be subject to approval by the General 183
Assembly and shall be used for expenses of financing, grants and loans; 184
(ii) Any federal funds that can be used for the purposes specified in 185
subsection (c) of this section; 186
(iii) Charitable gifts, grants, contributions as well as loans from 187
individuals, corporations, university endowments and philanthropic 188
foundations; 189
(iv) Earnings and interest derived from financing support activities 190
for clean energy projects backed by the Connecticut Green Bank; 191
(v) If and to the extent that the Connecticut Green Bank qualifies as a 192
Community Development Financial Institution under Section 4702 of 193
the United States Code, funding from the Community Development 194
Financial Institution Fund administered by the United States 195
Department of Treasury, as well as loans from and investments by 196
depository institutions seeking to comply with their obligations under 197
the United States Community Reinvestment Act of 1977; and 198
(vi) The Connecticut Green Bank may enter into contracts with 199
private sources to raise capital. The average rate of return on such debt 200
or equity shall be set by the board of directors of said bank. 201
(D) The Connecticut Green Bank may provide financing support 202
under this subsection if said bank determines that the amount to be 203
financed by said bank and other nonequity financing sources do not 204
exceed eighty per cent of the cost to develop and deploy a clean energy 205
project or up to one hundred per cent of the cost of financing an energy 206 Raised Bill No. 179
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efficiency project. 207
(E) The Connecticut Green Bank may assess reasonable fees on its 208
financing activities to cover its reasonable costs and expenses, as 209
determined by the board. 210
(F) The Connecticut Green Bank shall make information regarding 211
the rates, terms and conditions for all of its financing support 212
transactions available to the public for inspection, including formal 213
annual reviews by both a private auditor conducted pursuant to 214
subdivision (2) of subsection (f) of this section and the Comptroller, and 215
providing details to the public on the Internet, provided public 216
disclosure shall be restricted for patentable ideas, trade secrets, 217
proprietary or confidential commercial or financial information, 218
disclosure of which may cause commercial harm to a nongovernmental 219
recipient of such financing support and for other information exempt 220
from public records disclosure pursuant to section 1-210. 221
(3) No director, officer, employee or agent of the Connecticut Green 222
Bank, while acting within the scope of his or her authority, shall be 223
subject to any personal liability resulting from exercising or carrying out 224
any of the Connecticut Green Bank's purposes or powers. 225
Sec. 2. Subdivision (1) of subsection (e) of section 16-245n of the 226
general statutes is repealed and the following is substituted in lieu 227
thereof (Effective October 1, 2020): 228
(e) (1) The powers of the Connecticut Green Bank shall be vested in 229
and exercised by a board of directors, which shall consist of eleven 230
voting members and [two] one nonvoting [members] member each with 231
knowledge and expertise in matters related to the purpose and activities 232
of said bank appointed as follows: The Treasurer or the Treasurer's 233
designee, the Commissioner of Energy and Environmental Protection or 234
the commissioner's designee and the Commissioner of Economic and 235
Community Development or the commissioner's designee, each serving 236
ex officio, one member who shall represent a residential or low-income 237
group appointed by the speaker of the House of Representatives for a 238 Raised Bill No. 179
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term of four years, one member who shall have experience in 239
investment fund management appointed by the minority leader of the 240
House of Representatives for a term of three years, one member who 241
shall represent an environmental organization appointed by the 242
president pro tempore of the Senate for a term of four years, and one 243
member who shall have experience in the finance or deployment of 244
renewable energy appointed by the minority leader of the Senate for a 245
term of four years. Thereafter, such members of the General Assembly 246
shall appoint members of the board to succeed such appointees whose 247
terms expire and each member so appointed shall hold office for a 248
period of four years from the first day of July in the year of his or her 249
appointment. The Governor shall appoint four members to the board as 250
follows: Two for two years who shall have experience in the finance of 251
renewable energy; one for four years who shall be a representative of a 252
labor organization; and one for four years who shall have experience in 253
research and development or manufacturing of clean energy. 254
Thereafter, the Governor shall appoint members of the board to succeed 255
such appointees whose terms expire and each member so appointed 256
shall hold office for a period of four years from the first day of July in 257
the year of his or her appointment. The president of the Connecticut 258
Green Bank shall be elected by the members of the board. The president 259
of the Connecticut Green Bank shall serve on the board in an ex-officio, 260
nonvoting capacity. The Governor shall appoint the chairperson of the 261
board. The board shall elect from its members a vice chairperson and 262
such other officers as it deems necessary and shall adopt such bylaws 263
and procedures it deems necessary to carry out its functions. The board 264
may establish committees and subcommittees as necessary to conduct 265
its business. 266
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020 16-245n(d)
Sec. 2 October 1, 2020 16-245n(e)(1)
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Statement of Purpose:
To enable the Connecticut Green Bank to be considered as a potential
borrower of funds from the United States Department of Agriculture
and to fix technical changes concerning the appointed term length of a
board of directors member.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]