- xxvi, 232 pages ; 24 cm.
- "Preface This is not your average textbook. It is not a compilation of dry facts and drier theories. I started looking into environmental finance issues about 25 years ago. In many cases, I was appalled at what I saw. This book is a reflection of those experiences. I come from Wall Street. I have seen how business deals with financial issues. Financial markets are highly efficient. Government has much to learn. Before Wall Street, I was in politics in New York State. Winston Churchill said, "Democracy is the worst form of government, except for all others that have been tried." He also said, "The best argument against democracy is a five-minute conversation with the average voter." I am not so cynical, but I do see clearly that the exigencies of politics temper all good-hearted attempts to bring business-like efficiencies to environmental finance. I understand why a state legislator would vote for a grant program, even when it is wasteful and foolhardy to do so. I sympathize with them; but that is not going to stop my pointing out the folly of their actions. When colleagues asked me the working title of the book I was writing, I, of course, told them, "Finance Policy for Renewable Energy and a Sustainable Environment." Their next question invariably was, "When did you start writing fiction?" Their point is well taken. There is no finance policy for renewable energy. And, there is no finance policy for a sustainable environment. When I teach Environmental Finance, I often facetiously tell my class that they are listening to the world's greatest expert in environmental finance . . . under one theory that, in the land of the blind, the one-eyed man is king! This point is also well taken. I have been practicing what I call "environmental finance" for the past 25 years"--Contents note continued: A Role for the International Development Banks -- Tax Revenue Intercepts -- Externally Funded Guaranties -- Legal Guaranties -- Financial Guaranty Insurance -- Characteristics of Good Tariffs -- Full Cost Recovery Tariffs -- Tariff Design Options -- Fixed versus Volumetric Charges -- Fixed Charges -- Volumetric Charges -- Multipart Tariff -- Types of Volumetric Charges -- Increasing Block Tariff (IBT) -- Decreasing Block Tariff (DBT) -- Seasonal Pricing -- Zonal Pricing -- Regulation of Water Tariffs -- Types of Regulation -- Independent Financial and Management Audit -- The Beginnings -- Finance Policy for Climate Change and Renewable Energy -- Reduce System Costs -- Volumetric Tariffs -- Raise Money/Change Behavior -- Service Lives -- Longest Terms -- Lowest Rates -- Credit Enhancement -- Guaranties -- Buy-Downs -- Subsidies -- Carrots and Sticks -- Cost/Benefit.Contents note continued: Rating Agency Fees -- Miscellaneous Imposed Costs -- Nonfinancial Additional Cost Factors -- Delay -- Ineligibility -- Level Principal Payment Loans -- Level Payment Method -- Grants -- Affordability -- Community Affordability -- Individual Affordability -- The Need for Subsidies -- Delivering the Subsidy -- Non-Income Targeting Mechanisms -- Affordability Measures -- Lifeline Rates for Low-Income Customers -- Refunds or Discounts for Low-Income Customers -- Community Social Service Funds -- National Funds for Low-Income Water Bill Assistance -- Designing Better Subsidies -- Subsidies: Some Real, Some Imagined -- Reducing Costs -- Major Techniques for Financing Projects -- Grants -- Subsidized Loans -- Market-Rate Loans -- Municipal Bonds -- Loan Guaranties -- Rules of the Game -- Benefit Matrix -- Cost Matrix -- Case Study: Republic of Georgia Water Project -- Tranching -- Self-Funded Reserves -- Second Loss Reserve --Includes bibliographical references and index.Machine generated contents note: What Is Environmental Finance? -- The Second Wave -- Two Core Principles -- Policy Principles -- Management Principles -- Fundraising Principles -- Financial Principles -- Types of Debt -- Irregular Payment Method -- Balloon Payment Loans -- Level Payment Method -- Creating an Annual Debt Service Payment Schedule for the Level Payment Method -- Summary of the Level Payment Method -- Level Principal Payment Method -- Creating an Annual Debt Service Payment Schedule for the Level Principal Payment Method -- Summary of the Level Principal Payment Method -- Cash Available for Debt Service (CADS) -- Coverage -- Comparing Loans -- Annual Payment Method -- Total Payment Method -- Time/Value Theory of Money -- Method Rules -- Points, Fees, and True Interest Cost (TIC) -- Financing Costs -- Commitment Fees or Points -- Financial Advisory Fees -- Counsel Fees -- Servicing Fees -- Underwriting/Placement Fees -- Credit Enhancement Fees --Summary: "This book explains how environmental projects and improvements are achieved through the imposition of regulations, on the one hand, and financial incentives on the other. It discusses how those incentives can be organized to achieve the greatest environmental benefits at the lowest possible cost to the public. The book presents the best environmental finance policies to bear on the financing of alternative energy projects so that the ultimate cost of delivered power will decline. It also examines the challenges of the next generation of environmental programs"--