In a renewed push for a city-owned financial institution, San Francisco District 9 Supervisor Jackie Fielder is introducing a non-binding resolution that calls on Mayor Daniel Lurie and other city departments to explore the establishment of a ‘green bank.’
This green bank would be designed to provide low-interest loans aimed at financing renewable energy projects, supporting small businesses, and developing affordable housing.
Fielder’s proposal comes two years after the city officially endorsed plans to create a public bank, an initiative that has yet to progress despite unanimous approval from the Board of Supervisors in 2023.
The initial plan, sponsored by former Supervisor Dean Preston, aimed to leverage funding from the Inflation Reduction Act and other sources to offer cost-effective loans for projects focused on reducing emissions and addressing environmental injustices.
Although the plan received broad support, it has not been implemented, and the estimated cost of establishing the public bank is around $1 million.
According to the approved framework, the process would begin with the establishment of a three-year municipal financial corporation that would not accept deposits.
Following this initial period, the entity would evolve into a full-service public bank that is FDIC-approved.
The legal groundwork for local governments to establish public banks was laid in 2019 through a California state law, and if San Francisco successfully implements its plan, it would become the first city in the state to operate its own public bank.
Public banks remain a rarity in the United States, with the only existing model being the state-run institution in North Dakota, which has been operating since 1919.
While other California cities, including Los Angeles, have expressed intentions to form public banks, they have yet to fulfill these plans.
Recent polling indicates that the concept of a green bank resonates well with San Francisco residents, as a recent survey conducted on October 6 found that 70 percent of participants were in favor of such an institution, while 67 percent supported the establishment of a public bank.
This poll was commissioned by the San Francisco Public Bank Coalition, an organization co-founded by Fielder in 2017, showcasing widespread public backing for financial institutions that serve community needs.
As a newly elected official, this marks Fielder’s first major initiative focused on advancing the public bank mission.
Fielder characterized the green bank as a means to reclaim local financial resources from Wall Street, emphasizing reinvestment in housing, clean energy, and local small businesses.
She expressed hope that the resolution would garner significant backing from her colleagues on the Board of Supervisors.
Support for the public bank effort includes backing from six other supervisors who were part of Preston’s original initiative, indicating a sustained commitment to the concept.
Misha Steier, a key organizer for the San Francisco Public Bank Coalition, expressed excitement about working with the new Board of Supervisors to reinforce the commitment to public banking.
Steier also noted that the coalition is considering a ballot measure for 2026, underscoring a sense of urgency for implementing the public bank initiative.
Fielder has previously stated her intention to see the public bank initiative fully realized during her term, emphasizing the need for public institutions that can address the escalating cost of living and the pressing climate crisis.
“We need public institutions that aspire to reimagine how we can invest in our communities and in solutions that address climate change,” Fielder said.
image source from：missionlocal
