Unlocking Pension Investment for Resilient Infrastructure in Local Communities

 

Our communities are in dramatic need of a range of infrastructure that will make them resilient to a growing list of existential threats.  California has already faced drought, flood, fire and rising seas.  Now we face a global epidemic.  All of these are putting even more pressure on communities already separated over issues of income, racial and ethnic disparity and unequal access to opportunity. 

 

The solution is to enable those communities to design and develop the solutions that will address their specific needs while framing those in the context of best practices and risk mitigation.  By promoting best practices we open the door to new funding sources.  By mitigating risks, we limit the overall exposure to the State and allow the state to assist in getting those resilient infrastructure projects built.

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Financing locally designed resilient infrastructure projects

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America faces critical need for resilient infrastructure– now. New funding sources are critical, especially after COVID has decimated state/local budgets.  Resilient Infrastructure Requires Massive Investment- Hundreds of Billions Over the Next 10 Years.  Local governments must build resilient infrastructure now, with ability to pay over time.  Existing tools – state/local infrastructure bonds, Infrastructure Banks are not enough and have gaps.  

 

We have drafted the Resilient Infrastructure Financing Act ("RIFA") legislation to unlock pension investment to support these critical investments:

 

Why aren’t Pensions already investing in local resilient infrastructure? 

• Perceived risk associated with “never been done before”

• “No investment track record”

RIFA is designed to eliminate those risks

• States fund proof of concept and eliminate start up risk

• State guarantees 7% minimum returns, eliminating track record risk

• State Task Force certifies eligible projects controlling credit risk exposure

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Now is the time to find new ways to fund resilient infrastructure projects.  The Resilient Infrastructure Finance Act encourages access to public pension funds by providing them a low-risk path to invest billions in badly needed local infrastructure projects.  The legislation is drafted, vetted, and ready to be passed.

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All we need is money to get this done.
 

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