Innovative State Funding and Financing Mechanisms for Energy Projects
Key Ideas
  • Governors can accelerate energy policy goals by leveraging state funding and financing mechanisms alongside federal programs and private-sector investment.
  • Case studies like Virginia's advanced nuclear generation and Massachusetts' FFIO show successful approaches to maximizing infrastructure investments.
  • Innovative financing approaches, such as braiding private, state, and federal sources, can reduce barriers for investments and promote clean energy projects.
  • The development of new energy generation projects not only benefits the environment but also creates job opportunities and helps keep energy affordable and reliable.
This policy brief highlights the importance of leveraging innovative state funding and financing mechanisms alongside federal programs and private-sector investment to advance energy policy goals. By creating tailored financing mechanisms, green banks, and state energy financing institutions (SEFIs), Governors can effectively address the energy needs of their states. Funding and financing methods can be 'stacked' to provide capital for infrastructure projects and invest in new technologies. Case studies like Virginia's advanced nuclear generation projects and Massachusetts' Federal Funds and Infrastructure Office (FFIO) demonstrate successful approaches to accelerating energy goals and maximizing infrastructure investments. For example, Virginia's Governor Glenn Youngkin championed the development of advanced nuclear generation projects like small modular reactors, showing promise for reliable, clean, and cost-effective energy generation. On the other hand, Massachusetts Governor Maura Healey established the FFIO to systematically pursue and leverage federal funds to maximize infrastructure investments in the state. These initiatives not only promote clean energy but also create job opportunities and ensure energy affordability and reliability. Overall, innovative funding and financing mechanisms play a crucial role in driving sustainable energy development and economic growth.
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