A new Clean Energy Investment Bank could provide the impetus to move the U.S. clean energy technology market more fully into the mainstream energy industry.

Yesterday, Sen. Pete Domenici (R-NM) and seven co-sponsors introduced a bill (S.2730) to establish a Bank that would provide loans, loan guarantees, and insurance to facilitate the development and commercialization of clean energy and energy efficiency technologies — solely within the United States. The Bank would act as an independent government corporation, similar to the U.S. Export-Import Bank.

According to Domenici, the Bank would “take responsibility for management of the Department of Energy’s Title XVII loan guarantee program,” which was established by the Energy Policy Act of 2005 to support early commercialization of advanced technologies that reduce greenhouse gas emissions.

Dominici’s proposal appears to be consistent with the message of a May 2007 letter from Chairman John Dingell and ranking members of the House Committee on Energy and Commerce, calling for the Administration to use its full Title XVII loan authority to promote green energy investment.

“It seems to me that we should provide a level of financial support toward domestic energy diversification that is at a minimum equal to what we provide to U.S. companies that invest overseas. Since traditional approaches have fallen short of what is needed to meet increasing demands for energy, this innovative approach involving both government and private markets is a terrific solution,” Domenici stated in a press release.

There are signs that the move toward increased public-private partnerships may pay off. A recent report by Cambridge Energy Research Associates (CERA) recognized that the “convergence” of public concerns about energy security and rising fuel prices, government policies, and private investment could result in more than $7 trillion of new investment in clean energy technologies by 2030.

For further information about this topic, please contact Akin Gump.