Advait Arun


Special Purpose Vehicles

Augmenting the “SEFI Carveout”: How Special Purpose Vehicles Can Facilitate Large Project Pipelines

Making the Most of SEFI: A Model RFI

A Model RFI for Engagement and Collaboration with the Loan Programs Office

The SEFI Carveout

Under its original Title 17 authority, the LPO was limited to providing credit to borrowers working with experimental technology. But a new carveout in the IIJA and the IRA extends that credit authority to nearly any kind of energy project, so long as it’s being co-financed by what’s called a State Energy Financing Institution (SEFI).

CPE Elective Pay Model

The CPE Elective Pay Model is a tool developed in-house to help understand the financial considerations public utilities and other public agencies might face when making an elective pay investment in clean energy assets. Included here is report detailing the model, its assumptions, and results, a simulator tool (below) comparing tradeoff scenarios for the primary clean energy tax credits (Investment Tax Credit and Production Tax Credit), and the financial model itself.

Public Power Campaigns Database

This database, authored by Alexa Kane, Andrea Guscott, and Natalie Valachovic, identifies major public power campaigns across the country. Many of these campaigns seek to municipalize their local utility or replace their state utility, often but not always through cooperative structures. They generally prioritize delivering cheaper and cleaner energy, ending electricity shutoffs, and improving grid reliability.


Chaining Explainer

How Tax Credit “Chaining” Expands the Reach of the IRA Through Greater Public Participation in Project Development Download this brief as a PDF here. The Department of Treasury is soliciting comments on final rules regarding tax credit chaining. Tax credit chaining allows public and nonprofit entities to purchase tax credits and monetize them through the […]

Greenhouse Gas Reduction Fund, Part 3: Public Options Support Public Finance

Entities seeded by the GGRF will have to change their strategy when governing the markets that they created: they will have to work to become public options that compete with and shape the behavior of other market participants. This is important not only because private investors may underbuild, but because they may deliver bad outcomes. Just because a market works does not mean it is not predatory or prone to faltering—look no further than rooftop solar.

Greenhouse Gas Reduction Fund, Part 2: How to make a market

The EPA’s announcement of the first round of GGRF recipients marks the “end of the beginning.” For the past decade, the advocates of green banking have pushed for federal financial involvement in green lending. The GGRF is the first small step in this direction. GGRF recipients—coalitions of nonprofits, community development financial institutions (CDFIs), and state-chartered green banks—are being charged with building a broad new financial ecosystem that will support decarbonization, especially in underserved communities. As we highlighted in the first blog post of this series, the GGRF’s goal is to effectively “crowd in” private capital to new markets supporting decarbonization.

Overreading into Underwriting

If you’ve ever secured a mortgage, signed up for an insurance plan, or—anyone could be reading this—taken your company public on the New York Stock Exchange, then you’ve needed something called underwriting. Taking on debt to finance a home is risky, to say nothing of raising funding for a company. You know this, and so does your bank, which hires teams of people called underwriters to assess just how risky your particular venture is.

Overreading into Underwriting, Part 3

This is the final post of our three-part series on underwriting. In the two previous posts, I covered how underwriting works and how it interacts with the financial system, particularly in key tax equity and municipal bond markets. This last post picks up where the last left off: given the disappointing implications our fragile underwriting system has for our decarbonization goals, CPE believes that building public underwriting capacity across state green banks and, crucially, recipients of the National Clean Investment Fund tranche of the Greenhouse Gas Reduction Fund, could better drive public and private investment toward our shared goals.

Overreading into Underwriting, Part 2

This is the second of three posts in our underwriting series. The previous post—read here—explains how project finance underwriting at commercial banks works. This post dives into how underwriting interacts with the broader financial system to set the conditions for investment into crucial decarbonization priorities, with a focus on tax equity and municipal bond underwriting. Long story short, the conditions for investment are bad.