Just about everyone is dog tired of hearing about banks, government loans, and numbers with 'billion' or 'trillion' after them. Therefore, it's possible timing couldn't have been worse for Congressman Chris Van Hollen (D-MD) to announce legislation to establish a bank to provide ultra-cheap loans for energy saving home improvements.

Last week, Van Hollen introduced the National Home Energy Savings Revolving Fund Act, the bill would create a $10 billion revolving fund in the Department of Energy, develop an "application" to help local governments access the cash, and establish local payback methods through property taxes. Van Hollen claims the program would help over one million homeowners refurbish their ramblers.

On Tuesday, the Congressman brought to the floor the Green Bank Act. This bill would establish the Green Bank, "an independent, tax-exempt, wholly owned corporation of the United States." The venture would fund clean energy and energy efficiency projects in the U.S. Government will capitalize the program with $10B initially, with an upper limit of $50B through the issuance of green treasury bonds (non-toxic assets?).

The Coalition for Green Bank, a green investment industry group, liked the plan too. They say the move could reduce annual energy costs by $22.5 billion, cut carbon emissions by 29.6 million tons, and create over 1.5 million jobs.

Honestly, I had a pretty hard time finding out whether CGB lobbied for the legislation or if it will be the primary beneficiary in some way, so proceed with caution.

Leaders are taking caution, by the way, to prevent the "liars loans" that have plagued mortgage-backed securities, employing spending safeguards and reporting requirements. Back in February, Matter reported on a bank near Philadelphia giving preferential rates to fund green dreams. Van Hollen's two pet projects represent the next phase of truly green investment.