First there was the bad bank.  Now, Congressional Democrats want to create a green bank:

The proposed Green Bank will be an independent, tax-exempt, wholly owned corporation of the United States, with the exclusive mission of providing a comprehensive range of financing support to qualified clean energy and energy efficiency projects in the U.S. The Act would provide the Green Bank with an initial capitalization of $10 billion through the issuance of Green Bonds by the Department of Treasury, with a maximum authorized limit of $50 billion. The legislation includes spending safeguards and public disclosure requirements to ensure that the Green Bank operates at the highest levels of efficacy, accountability and transparency required by taxpayers for their financial support.

Why a Fannie Mae for green energy?  Because the government foray into mortgage  financing worked out so well last time?

According to the CGB, this legislation is a critical stimulus for the US transition to a cleaner energy future. Development of clean, sustainable, renewable energy, critical to US energy independence and environmental and economic health has been throttled by current conditions in the economic, financial and commodity markets. The proposed Green Bank provides the capability to jump-start renewable energy development in the U.S. and move the nation closer to energy independence.

The economy’s in bad shape, so the government will ride to green energy’s rescue.  If this has such a great future, why does the government have to jump-start it?  It already heavily subsidizes green energy technology as it is.  Why isn’t the free market all over this?  Maybe there’s a reason for that?  Oh, right.  Cost is an object for the market, and profitability matters.  For government, not so much.  How long before we hear an Administration and Congress declare the green bank too big to fail because it’s so entwined in the economy?    Oh, yes, and it will be vital to national security, too.

“The Green Bank will serve a critical role in supplementing financing available in the private sector and assisting the development of certain private sector financing markets,” Ken Marks -Managing Director at Morgan Stanley.

“The Green Bank, because it promotes long term investment by the private sector, is the missing link in the efforts of Congress and the Obama Administration to jump start the green energy economy,” Harrison Wellford, Managing Director, Terrawell Energy.

Lots more at the link.

How about Congress focussing on dealing with the economy that already exists?  Cap and trade may be dead for this year, but the expansion of government is alive and well in Congress.

Thanks to Green Hell