Hartford Business Journal

www.HartfordBusiness.com • January 8, 2018 • Hartford Business Journal 15 Quality Construction + Butler Manufacturing = Repeat Customers www.borghesibuilding.com © 2011 BlueScope Buildings North America, Inc. All rights reserved. Butler Manufacturing™ is a division of BlueScope Buildings North America, Inc. 2155 East Main Street • Torrington, Connecticut 06790 Dupont Storage Systems, Bristol, CT | 2009 | 32,500 sq. ft., 46' tall 2012 | Addition — 15,300 sq. ft. Contact us at 860-482-7613 or visit us on the web. million tons, he said. "We've delivered outstanding results and we were great stewards of the ratepayer resources," Garcia said. "We even won the Innovations in American Government award [from Harvard's Kennedy School], the 'Academy Award' of government." "And here we are. We now have to deal with a new reality. And the new reality is going to require us to make difficult deci- sions to put us onto a sustainability plan." Board member John Harrity, president of the Connecticut State Council of Ma- chinists, chimed in. "That's what infuriates me about the sweep, is we have done so well. And people who don't understand the program and maybe don't even understand climate change are making decisions that take a great thing and then chop off a foot and then say 'well, let's see what you can do now.' " The situation was nearly more dire, as legislators, nearing a budget deal in late October, had discussed a cut approxi- mately twice as large to the Green Bank. That led Smith to write an appeal to lawmakers, calling the proposed cut "excessive and disastrous" and saying it would effectively end the Green Bank. Also playing a role in reducing the size of the eventual cut was Gov. Dan- nel P. Malloy, who oversaw the cre- ation of the Green Bank after taking office in 2011. He argued sweeping into the gen- eral fund a pool of ratepayer money dedicated to clean energy was akin to a new tax. Profit concerns While some impacts remain to be seen, Garcia noted that several projects have already seen negative effects from the cuts. For example, a $10 million proposed solar project with the Connecticut State Colleges and Universities system was thrown into uncertainty after the deal's financing partner, Bank of America, expressed concern about the budget cuts. B of A now wants the Green Bank to back the deal with a special state bonding reserve fund to move forward. While most businesses wouldn't blink an eye at profit being a core motive, some Green Bank directors are concerned about a heightened bottom-line focus. Matthew Ranelli, a partner at Hart- ford law firm Shipman & Goodwin, said a focus on breaking even or making a profit may not fit with Green Bank's mission and "may even be antithetical in some cases." "I worry about it as a talisman for all our decisions," Ranelli said. He noted that the raided ratepayer funds would return in 2020, barring further action from the legislature. Gina McCarthy, former administrator of the federal Environmental Protection Agency under the Obama administration, said the profit discussion won't matter if energy companies that work with the Green Bank pull up stakes and move to more favorable states. "The profit- ability depends on business partners," said McCarthy, who sits on the Green Bank's board. "They will not be here if Connecticut sends signals like this." Michael Trahan, who represents clean energy installers as executive director of SolarConnecticut, said it's not clear how the budget cuts will impact solar contrac- tors, but he predicts they will take a hit. Trahan said he hopes the Green Bank's funding problems are limited to the cur- rent biennium. "The Green Bank is responsible for creating this marketplace," he said. "None of us would be here if it weren't for the financial wizardry of the Green Bank." Talking points Beyond enacting its new financial plan in the near term, the Green Bank must now grapple with how to convey the im- pacts to the legislature and the public. Some board members were concerned about how the formation of a nonprofit affiliate might look. It's not meant to shield Green Bank funds from further sweeps, they said, but rather a way to grow important programs that may not otherwise survive and to give confidence to third-party investors to put their money in. While Garcia said the Green Bank still remains "on solid ground," another budget cut in the next biennium would damage its future prospects. The board spent time in December going over its communications plan and talking points with legislators, partners and others. Harrity voiced one concern about how the process might go. "I don't want someone in the legisla- ture to say 'well we took the money away and they're just fine,' " he said. "This is a contingency plan to deal with the fact that they put a big hole in the boat, but it's not like it's all smooth sailing and we're fine." Gina McCarthy, former Administrator, Environmental Protection Agency Jobs created by Connecticut Green Bank activities 2012 2013 2014 2015 2016 2017 Total Direct jobs 88 580 594 1,465 1,654 722 5,103 Indirect/induced jobs 142 1,165 954 2,357 2,660 957 8,235 Total 230 1,745 1,548 3,822 4,314 1,679 13,338 Source: Green Bank 2017 CAFR report "We've delivered outstanding results and we were great stewards of the ratepayer resources." Bryan Garcia , CEO, Connecticut Green Bank FOR A FULL GUIDE OF WONDERFUL ORGANIZATIONS TO GIVE TO GO TO WWW.HARTFORDBUSINESS.COM & CLICK ON SPECIAL EDITIONS TO VIEW THE 2017 GIVING GUIDE START THE NEW YEAR OFF RIGHT BY GIVING BACK!

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