FUTURE OF ENVIRONMENTAL FINANCE Public Forum at the UNC School of Government Environmental Finance Center at the UNC School of Government Twitter: @EFCatUNC www.efc.sog.unc.edu #EnvironmentalFinance May 5 th, 2014 1:30-4:30 pm
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 #EnvironmentalFinance
One Key to Great Communities ENVIRONMENTAL FINANCE #EnvironmentalFinance
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 jhughes@sog.unc.edu #EnvironmentalFinance www.efc.unc.edu
Registered Participants #EnvironmentalFinance
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#EnvironmentalFinance 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 Stan Meiburg Karen Massey Alfred Griffin Nancy McFarlane Lynn Broaddus To submit a question or comment: Pass your comment card to your right during presentations Tweet your question using #EnvironmentalFinance at the UNC School of Government
#EnvironmentalFinance Stan Meiburg Retired Deputy Regional Administrator U.S. Environmental Protection Agency Region 4
Sustainable Environmental Finance Stan Meiburg #EnvironmentalFinance
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 #EnvironmentalFinance
#EnvironmentalFinance Karen Massey Director Missouri Environmental Improvement and Energy Resources Authority
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#EnvironmentalFinance Alfred Griffin President New York Green Bank
Nancy McFarlane #EnvironmentalFinance
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) #EnvironmentalFinance
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.) #EnvironmentalFinance Photo: GI / LID (US EPA)
#EnvironmentalFinance Lynn Broaddus Director, Environment Program The Johnson Foundation at Wingspread
Panel Discussion Stan Meiburg Karen Massey Alfred Griffin Nancy McFarlane Lynn Broaddus To submit a question or comment: Pass a comment card to your right Tweet your question using #EnvironmentalFinance at the UNC School of Government
#EnvironmentalFinance Andrew Sawyers Director EPA Office of Wastewater Management
Challenges and Opportunities from the Perspective of the CWSRFs 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 #EnvironmentalFinance 29
#EnvironmentalFinance Rich Thorsten Director of International Programs Water.org
Domestic Private Domestic Public Intl. Private Intl. Public $0 $100,000,000 $200,000,000 $300,000,000
#EnvironmentalFinance Hawley Truax Program Officer for Environment Z. Smith Reynolds Foundation
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Statement of Cash Flows Balance Sheet 12/31/2012 Financials for FY 2013 Balance Sheet 12/31/2013 Income Statement #EnvironmentalFinance
Transparency and open dialogue about finances helps. Diverse revenue streams matter. Hope is not a sustainable fundraising strategy. Avoid undercapitalization. #EnvironmentalFinance
#EnvironmentalFinance 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 #EnvironmentalFinance
Strong Cities = Stronger NC Attractive, lower cost Well designed and grown Bolstered service efficiency Greater local economic future Prosperous NC #EnvironmentalFinance
#EnvironmentalFinance 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 Construction Grants and Loans Clean Water State Revolving Fund Loans General Revolving Loans Technical Assistance Grants Emergency Loans High Unit Cost Grants Public Water Supply Drinking Water State Revolving Fund Loans General Revolving Loans Technical Assistance Grants Emergency Loans High Unit Cost Grants Commerce Finance Center CDBG Economic Development Funds Industrial Development Fund Division of Community Assistance CDBG Infrastructure Funds #EnvironmentalFinance
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 Division of Water Infrastructure Water and Wastewater Infrastructure Funding Commerce Finance Center CDBG Economic Development Funds Industrial Development Fund 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 #EnvironmentalFinance
#EnvironmentalFinance 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 #EnvironmentalFinance
What does banking have to do with the environment? Environmental Finance Directing financing to industry-leading and innovative environmental investments Environmental & Social Risk Managing environmental and social risks associated with client transactions Operations and Supply Chain Reducing the impacts of our 12,000 facilities and global supply chain Highlight: In 2013, Citi directed the final $8.78 billion towards our tenyear, $50 Billion Climate Change Initiative, hitting our goal three years early. Highlight: Citi reviewed and advised clients on environmental and social risks in 443 transactions in 2013. Highlight: In 2013, Citi opened LEED (Leadership in Energy and Environmental Design) certified facilities in Haiti, India, and Zambia. 44 #EnvironmentalFinance
How big are the challenges and opportunities? 45 #EnvironmentalFinance
What are the keys to success? 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 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 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. 46 #EnvironmentalFinance
Panel Discussion Andrew Sawyers Rich Thorsten Hawley Truax Paul Meyer Mitch Gillespie Valerie Smith To submit a question or comment: Pass a comment card to your right Tweet your question using #EnvironmentalFinance at the UNC School of Government
#EnvironmentalFinance Please Join Us After the Forum for a Reception in the Atrium at the UNC School of Government