News from the Center for Environmental Finance Advancing sustainable finance and technology solutions vxEPA Office of the Chief Financial Officer July 2011 Volume 2, Issue 2 The Environmental Financial Advisory Board Meets in Alexandria, VA for Bi-Annual Meeting The members of the Environmental Financial Advisory Board (EFAB), an independent and federally chartered ad- visory committee, gathered in Alexandria, VA March 8-9, 2011 for their much-anticipated bi-annual meeting. The purpose of the meeting was to discuss progress on work projects under EFAB's current Strategic Action Agenda and to hear from informed speakers on environmental finance issues, proposed legislation, and EPA priorities. EFAB provides the Agency with advice on topics ranging from financing environmental technologies to leveraging funds for public environmental programs and services. The meeting began with a discussion led by an Environ- mental Finance Center Network (EFCN) panel on effective public-private partnerships for financing environmental protection. The EFCN is a network often university-based organizations providing communities across the nation with innovative technical assistance in the area of envi- ronmental finance. This discussion included updates from the EFCN about the network's environmental protection and community outreach work, including projects directly supporting EPA's priorities of improving air quality, pro- tecting America's waters, and cleaning up communities. EPA's Chief Financial Officer, Barbara Bennett, presented EPA's FY 2011-2012 budget priorities. She articulated the Administrator's goal to further her environmental priori- ties while the Agency participates in the budget negotia- tions and planning necessary to implement those priorities with less funding. After fielding questions, Bennett hon- ored departing members of the Board. Various workgroup chairpersons reported on their recent activities around topics of implementation of the Voluntary Environmental Improvement Bond and Property Assessed Clean Energy programs, financing clean air technology, tribal financing, and sustainable communities. Represen- tatives from EPA's Office of Policy made a presentation to the Board requesting assistance on financing sustainable communities, and representatives from the Office of Inter- national and Tribal Affairs made a presentation on financ- ing tribal environmental programs. pcoming Events August 23: Webinar: Local Government's Role in the Product Stewardship Movement http://efc.syracusecoe.org/efc/events.html?skuvar=29 September 7-8: GSA Federal Advisory Committee Act Conference, DC Convention Center, Washington, DC www.facatrainingconference.com October: Webinar: Environmental Financial Advi- sory Board Meeting www.epa.gov/efinpage A complete summary of the meeting can be read at www.epa.gov/efinpage. The next EFAB Meeting is scheduled for mid-October 2011. ------- State Revolving Fund Investment Option can be Used to Leverage Funds In support of EPA's priority to protect America's waters, the Environmental Financial Advisory Board (EFAB) was pleased to submit for Agency consider- ation its report "SRF Investment Func- tion: Current Status and Prospects for Enhancing Sustainability." This is the latest of 23 reports the Board has sub- mitted to EPA in the area of clean water financing in the past decade. In this SRF report, EFAB acknowledged that the State Revolving Funds (SRFs) for clean water and drinking water are structured to allow states substantial flexibility in the design of individual state programs and highlighted ways that states could take advantage of opportunities made possible by that flexibility. The Board found that states vary widely in their use of investments to support the SRF mission. The Board emphasized that EPA could add value to the SRFs by pro- moting leveraging models among EPA regions and state administrators and looking at the asset side of the SRF balance sheet. EFAB recom- mended that EPA undertake a review of the SRF investment authority and support the broadest governing pa- rameters consistent with federal law to encourage and expand the use of investment strategies by state admin- istrators and EPA regional offices to maximize both current and future SRF funding capacity. Enhanced SRF funding capacity would allow states and EPA regional offices to more effectively protect America's waters. To read the full report, please visit http://www.epa.gov/efmpage/efabpub.htm. Finance Tool Spotlight: Solar Home Electric Systems Financed Through Microcredit Grameen Shakti, one of the largest and fastest growing rural based renewable energy companies in the world, has a Solar Home Systems (SHSs) financ- ing program that awards microloans. Through the SHSs program, Grameen Shakti works to connect renewable en- ergy technology and microcredit for individuals and communities in rural Bangladesh. Specifically, microcredit is a financing tool that can be used to help make income generating proj- ects possible in developing coun- tries, including environmentally sus- tainable ones. Through microcredit, small loans called microloans are extended to cash poor entrepreneurs, who lack verifiable credit history. This opens up new opportunities for them to make home improvements and start businesses. Grameen Shakti's SHSs program provides families and individuals with the opportunity to improve their quality of life through participat- ing in income generating activities and taking advantage of economies of scale. Through the micro-utility model, one entrepreneur installs the system, financed by a microloan from Grameen Shakti, and shares the load with neighbors. The owner of the system collects rents from the users of the system. More than 1,000 micro-utility systems are operating in rural Bangladesh, providing electric- ity for homes, schools, and business- es and helping people earn income in an environmentally sustainable way. For more information on financing tools, please access our publications, Guidebook on Financial Tools or International Environmental Finance Tools, available at http://www. epa.gov/efinpage/guidebook. htm. Center for Environmental Finance Newsletter • July 2011 • EPA-190-N-11-002 Page 2 ------- |