Restoring Private Sector Competition and Protecting Ratepayers
Connecticut Green Bank was created in 2011 to "crowd in" private investment and "foster private sector development" in emerging clean energy markets. Instead, CGB now operates as a competitor to private capital—using $24-26 million per year in ratepayer subsidies to flood fully mature markets where abundant private capital already exists.
These are not emerging markets requiring public support. These are mature, highly competitive sectors with:
By definition, a state-backed monopoly with access to ratepayer-subsidized capital can always undercut private lenders operating under normal market discipline:
Private Lenders Must:
CGB Can:
Result: CGB squanders ratepayer funds to displace private capital in markets that don't need public intervention—the opposite of "crowding in" private investment.
This is not economic development. This is bureaucratic self-preservation—wasting public funds to maintain an agency's relevance in markets that have outgrown the need for it.
These reforms aim to restore the Connecticut Green Bank to its 2011 mission: catalyzing private investment in underserved markets, not competing with private capital in mature, liquid sectors.
Sec. 1. Prohibition on Competition with Private Capital
"The Connecticut Green Bank and any subsidiary or affiliate thereof (including Inclusive Prosperity Capital) shall be prohibited from bidding on, owning, leasing, or providing financing for any Class I renewable energy project if at least one (1) private sector entity is willing and able to provide financing for such project on commercially reasonable terms."
Sec. 1(b). Specific Program Prohibitions – For the Avoidance of Doubt
"Notwithstanding any other provision of law, and for the avoidance of doubt, the Connecticut Green Bank and any subsidiary or affiliate thereof (including Inclusive Prosperity Capital) shall be categorically prohibited from bidding on, owning, leasing, or providing financing for any projects under the following programs, which are hereby declared to be mature markets with demonstrated private capital availability:
This prohibition shall take effect immediately upon passage and shall apply to all new contracts, extensions, or modifications of existing financing agreements. The Connecticut Green Bank shall have ninety (90) days from the effective date to wind down any existing financing activities under these programs and transition management of such portfolios to independent third-party servicers."
The sole requirement is transparency from CGB. Before financing any project, CGB must publicly disclose its intent to allow private capital the opportunity to compete. No burden is placed on private developers or municipalities.
Before CGB or any affiliate commits to financing any renewable energy project, CGB must publish a public "Notice of Intended Financing" containing:
Notice must be published on CGB website and sent to industry associations (Connecticut Solar & Storage Association, etc.)
Automatic Disqualification for Below-Market Subsidization:
If CGB's disclosed cost of debt capital is more than 100 basis points (1.0%) below the prevailing market rate for comparable renewable energy project debt (as determined by reference to recent private market transactions or published lending rates), CGB shall be automatically disqualified from financing the project.
Rationale: Using below-market ratepayer subsidies to undercut private lenders wastes public funds to capture market share when private capital is available at market rates. This is the opposite of CGB's statutory mandate to "crowd in" private investment.
Note: RRES, NRES, and SCEF Are Categorically Prohibited
As established in Sec. 1(b) above, CGB is categorically prohibited from financing any projects under RRES, NRES, or SCEF programs because these are mature markets with demonstrated private capital availability. CGB must stand down from these three programs immediately and unconditionally—no notice period, no stand-down trigger analysis required.
The stand-down trigger below applies only to other project categories (e.g., emerging technologies, pilot programs, or projects not covered by the categorical prohibitions).
For all other projects not categorically prohibited: If at least one (1) private entity submits a written expression of interest indicating willingness and ability to provide financing on commercially reasonable terms, CGB must immediately withdraw from the project.
No competitive solicitation required. Private developers and project hosts negotiate directly. CGB plays no role.
CGB must report annually on:
Sec. 2. Decoupling Technical Assistance from Financing
"Any technical assistance, feasibility studies, or design services funded in whole or in part by ratepayer funds (including the Combined Public Benefits Charge, RGGI funds, or federal grants administered by CGB) must remain vendor-neutral. The provision of such assistance shall not be conditioned, directly or indirectly, on the use of financing provided by the Connecticut Green Bank or any affiliate thereof."
"All projects developed with state-subsidized technical assistance must be subject to an open, competitive solicitation for financing. The solicitation process must be managed by an independent third party or state procurement officer, not by the Connecticut Green Bank."
This reform directly addresses the Sherman Act violation:
Sec. 3. Affiliate Entities as Public Agencies
"Any non-profit entity that (a) receives more than 20% of its operating revenue from the Connecticut Green Bank, OR (b) shares one or more overlapping board members or executive officers with the Connecticut Green Bank, shall be deemed a 'Public Agency' for purposes of the Freedom of Information Act and all state procurement statutes."
"Such entity shall be subject to all disclosure requirements, competitive bidding mandates, and ethics rules applicable to quasi-public agencies."
Sec. 4. Cooling-Off Period for CGB Officials
"No person who has served as an officer, director, or senior executive of the Connecticut Green Bank shall, for a period of two (2) years following the termination of such service, serve as an officer, director, employee, or consultant of any entity that has received financing, grants, or other financial assistance from the Connecticut Green Bank within the preceding five (5) years."
"Violation of this provision shall result in automatic forfeiture of all CGB retirement benefits and potential civil penalties."
Under current law, Ben Healey could:
Under reformed law: Healey would be prohibited from joining PosiGen for 2 years, eliminating conflict of interest and insider advantage.
Sec. 5. Restrictions on Capital Stack Positioning
"The Connecticut Green Bank shall be prohibited from holding subordinate debt or equity positions in any transaction where:
"When CGB provides financing to any entity that subsequently secures senior private financing, CGB must either: (i) exit the transaction within 12 months, OR (ii) convert its position to pari passu (equal priority) status with the private lender."
Sec. 6. Active State Supervision Requirement
"To mitigate antitrust liability exposure under federal law, the following approvals are required:
This reform directly addresses the antitrust immunity gap:
These reforms do not eliminate the Green Bank—they refocus it on its original mandate. CGB should continue full operation in true market-gap areas:
Rationale: No private market track record; high technical risk; true "additionality"
Rationale: Private lenders decline this segment; social equity mandate; limited market size
Rationale: Longer payback periods; private ROI insufficient; critical for carbon goals
CGB should invest where private capital cannot or will not, not where private capital is already active and efficient. If multiple private solar developers are bidding on municipal solar with $700M+ in private liquidity, CGB's role is to facilitate the market, not compete in it.
Every month of delay means:
Energy & Technology Committee and Finance, Revenue & Bonding Committee hold joint public hearing on CGB reform. Invite testimony from:
Immediate legislative moratorium on new Solar MAP projects and IPC financing awards pending reform enactment.
Introduce comprehensive "Connecticut Green Bank Modernization and Competition Act" incorporating all six reforms above.
Direct Public Utilities Regulatory Authority to conduct formal investigation into Solar MAP pricing and ratepayer harm.
Request formal opinion from Attorney General on state antitrust liability exposure and recommended remedies.
This is a bipartisan issue affecting ratepayers, municipalities, private businesses, and state fiscal liability. Contact:
Primary jurisdiction over CGB statute and operations
Authority to investigate antitrust violations and protect state interests