Largest State-Based Green Bank in the US Invests $60 Million in EV Charging Stations

While President Donald Trump launched a cloud of uncertainty over the United States electric vehicle (EV) market, some state policy makers are determined to keep the momentum going. Green banks can provide the financial means to realize that goal. In one recent development, the largest state-based green bank in the U.S. completed its first ever loan for EV charging infrastructure, representing a significant new step in support for clean transportation investments.

More EV charging stations for New York City

The charging station loan was made by the NY Green Bank, which describes itself as the largest state-based green investment fund in the nation. As with all green banks, New York State's bank is mission-focused on the clean energy transition, with social equity and environmental justice playing a key role.

It launched in 2013 with $1 billion in public capital. At the time, the cost of renewable energy was relatively high and the bank focused primarily on stimulating solar investment in New York. Since then, the bank added wind, energy storage, transportation, and building electrification to its portfolio.

The new charging station transaction, the first of its kind for the bank, provides the EV firm Revel with $60 million in financing to install 267 public EV chargers across five locations in New York City by 2027 — more than tripling the number Revel has installed to date.

Depoliticizing the urban EV market

EVs have been a political football ever since the Obama administration, when General Motors introduced the Chevrolet Volt. The car featured a gasoline range extender, but right-wing pundits immediately pounced, excoriating both the company and the car as an example of left-wing meddling and environmentalism run amok.

Still, far-right critics lose some force in the context of urban pollution. Automotive emissions are more concentrated in cities, making clean transportation of any sort a straightforward matter of improving public health for residents and visitors.

New York Governor Kathy Hochul emphasized that point when she announced the new loan to Revel: “This significant investment addresses the key need of providing electric vehicle users in New York City with much needed public charging options while reducing local emissions."

In support of that mission, last year the NY Green Bank also provided the clean fleets specialist and Revel partner Inspiration Mobility Group with financing to introduce almost 400 electric vehicles into the city, focusing on improving access to ridesharing in underserved communities.

The green bank ripple effect

In addition to accelerating EV adoption in New York City, the NY Green Bank aims to stimulate private investment in charging infrastructure across the U.S.

“The Revel transaction is an important and replicable precedent we expect will help accelerate investment in this fast-growing sector and expand access to EV charging,” Andrew Kessler, the bank's president, said in a statement.

Inspiration Mobility is a good example of the mobilization already taking place nationwide. The company describes itself as the only EV-first fleet management company, covering the North American market with a turnkey lease model for electrification-ready fleet owners that minimizes up-front costs. 

As a green lending institution, the NY Green Bank also aims to encourage private sector investors to pursue more opportunities in disadvantaged communities. Of the Revel projects it supports, more than 75 percent are located in disadvantaged communities. 

Revel cites the bottom line as the motiving factor. It intensively researched the New York City charging market prior to receiving the loan. “Revel has been preparing a strategic portfolio of the most lucrative fast-charging locations in New York City," Frank Reig, the company's co-founder and CEO, said in a statement. "These sites are now shovel-ready."

Green banks cannot compensate for the all the damage done by President Trump, whose blanket freeze on federal disbursements has impacted federally funded programs across the board. But they provide significant opportunities for growth, enabling clean tech stakeholders to continue supporting the energy transition regardless of White House policy.