In this report for the US EPA OIG, we analyzed the financial health of state and local green banks across the United States to help the OIG oversee the allocation of IRA funding. In particular, we focused on the benefits that green banks bring to disadvantaged communities.

We developed several key metrics for determining the financial health of a bank, including their private capital leverage rates, reliance on government grants or loans, and return on assets. We used regression analysis to recommend the creation of a national nonprofit financing institution that could increase liquidity, underwrite loans to state and local green banks, and help standardize data collection and reporting.