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Roadmap to Passing a Municipal Green Energy Bond

Updated October 29, 2025

Authors: Katie Thomas Carol, Livable Futures Director, and Heejin Hahn, Program Specialist

Local governments are facing mounting fiscal pressure from federal funding cuts, including cuts to Medicaid, food assistance programs, transportation, and energy grants like the Solar for All program. These local governments can’t rely on regressive solutions like raising property taxes, which would further burden constituents already facing higher utility and healthcare bills. Green revenue bonds offer a viable, community-centered alternative for raising local revenue and advancing public clean energy projects. 

Unlike general obligation bonds, which are repaid through taxes, revenue bonds are repaid from the income generated by the projects they finance (such as payments for the energy they produce or verified savings from efficiency upgrades). 

Local governments already use revenue bonds to build toll roads, airports, and water systems. With the right design, green revenue bonds can finance clean energy projects that create high-wage union jobs and provide community benefits—while keeping ownership and accountability in public hands.

This roadmap provides a step-by-step guide to planning and winning a successful municipal green revenue bond.

Note: This roadmap is designed to guide both legislative and ballot initiative pathways for passing a municipal green revenue bond. Local laws vary widely; some cities or counties can authorize a bond by council or commission vote, while others require voter approval. The steps below apply broadly to both approaches, with notes throughout on how to determine the best strategy and how strategies may differ depending on the pathway.

1. Build the Foundation

Form a broad, diverse coalition: Consult community stakeholders, including local community-based organizations, environmental advocates, business leaders, area unions, and labor councils, to support the measure. A bond campaign cannot rely solely on government leaders for support. This is arguably the most important part of the campaign. Whether your bond will ultimately go through a legislative vote or a ballot campaign, early and inclusive coalition-building is essential. A strong community base will help secure council votes or mobilize voters, depending on the pathway for passage.

Recruit respected co-chairs: Identify diverse and effective campaign co-chairs representing different perspectives to demonstrate broad support (e.g., a respected business leader and an environmental justice advocate).

Engage organized labor early: Coordinate with local unions and labor organizations to ensure project plans include worker priorities such as competitive wages and benefits, project-labor agreements, job training and apprenticeship programs, and safety and health protections.

Identify and build support around potential project sites: Work with community stakeholders and public entities (utilities, school districts, departments of energy, public works, etc.) to identify public infrastructure sites that could benefit from clean energy or energy efficiency upgrades. Engage the communities connected to these sites to build enthusiasm and buy-in. For example, if the school district’s infrastructure is identified as a possible project site for clean energy upgrades, engage the district’s board, local parent-teacher associations, and teachers’ unions.

2. Strengthen the Campaign

Conduct polling and research: Survey residents to determine their general support for green energy investment and their perspectives on specific project ideas and funding amounts. Identify which arguments for and against are most persuasive. For legislative campaigns, polling can help persuade key council members or staff of broad public backing; for ballot initiatives, polling is essential for message-testing and turnout planning.

Secure endorsements: Ask engaged stakeholders—such as union locals, business associations, environmental groups, community organizations, and community leaders—to formally endorse the proposed measure to demonstrate growing and broad-based support. For legislative campaigns, identify an elected champion who can introduce the measure.

Develop clear messaging: The message should be simple, values-based, and focused on local benefits, such as good jobs, clean air, energy resilience, and lower energy costs. Economic framing is key: Focus on “investing in our community,” “lowering costs,” and “creating high-wage green jobs.” Train coalition members and surrogates on this simple, unified message.

Explore financing partners: Reach out to state or regional green banks to see if they can support or match local bond financing.

Commission a financial feasibility study: This study should assess specific potential projects for costs, savings, and repayment capacity (including the parameters that would make a bond for such projects marketable and repayable). This should come only once there is a rough sense of what the measure will include to ensure the study’s relevance. This step is vital for building confidence—either among local legislators or the public—that the bond is fiscally sound and will deliver benefits. If there isn’t sufficient funding to commission a study, explore a partnership with universities, local philanthropy, nonprofits, or corporations that could help.

3. Design the Measure

Confirm legal authority

Municipal bond authority varies significantly by state and locality. Begin by determining whether your local government has the legal authority to issue a green revenue bond on its own or if voter approval is required. Consult your city or county attorney to identify any state or municipal laws governing bond issuance, including limits on debt, eligible purposes, and requirements for ballot language or public hearings. 

Once the legal framework is clear, determine which approval process applies in your jurisdiction:

  • Legislative pathway: Some bonds can be approved directly by a local governing body, such as a city council or county commission.

  • Ballot pathway: Other jurisdictions require voter approval through a ballot measure.

In some cases, both ballot and legislative pathways may be possible—each with distinct advantages depending on the local context. 

Determine the strategic pathway

If your jurisdiction allows both approval processes, assess which pathway is more viable by weighing legal and strategic considerations:

  • Legal considerations: Confirm the required vote threshold (simple majority or supermajority), the appropriate bond structure, and the specific revenue source for repayment.

Strategic considerations: Evaluate the political and community context, including how supportive the local elected body is, how strong public enthusiasm for green energy investment is, and whether one approach offers a clearer timeline, lower risk, or greater opportunities for community engagement and visibility.

Draft the measure

After determining the appropriate pathway, draft the measure language and accountability framework. See a sample bond order here.

  • Include coalition priorities, worker protections, and community benefits, particularly for those disproportionately affected by the climate crisis, pollution, or other environmental injustices. 

  • Include requirements for how revenue generated by the clean energy projects will be allocated. 

  • Design a clear plan for tracking and publicly reporting how funds are used; this is good governance and key to building trust. Consider creating a Citizens' Oversight Committee to monitor spending and outcomes. 

  • Share the draft with coalition stakeholders for feedback to ensure it reflects shared goals.

4. Pass the Measure

The final push will look different depending on your pathway to passage—either securing a vote from local elected officials or running a public campaign to win at the ballot box.

Legislative pathway: 

  • Work with municipal staff to schedule hearings before the appropriate local jurisdiction, whether that’s the city council, county commission, or other governing body. 

  • Recruit community members to testify publicly and share stories about why this bond is important. 

  • Identify research, reports, or letters of support to submit to the public record for legislative consideration. 

  • Focus on direct engagement with decision-makers and their key constituents to secure votes for passage.

Ballot initiative: 

  • Focus on public engagement and voter education. 

  • Monitor community awareness and voter sentiment to inform the timing of the measure. 

  • Collect any required signatures to qualify the measure for the ballot. 

  • Recruit local elected officials to champion the measure. 

  • Coordinate with your coalition to lead voter education and get-out-the-vote (GOTV) campaigns. 

  • Organize community forums, public hearings, and storytelling campaigns. 

  • Messaging should highlight local benefits, job creation, project impacts, endorsements, and that revenue bonds do not raise taxes. 

For more detailed guidance, see the Local Infrastructure Hub’s resources on best practices for ballot measure campaigns and examples of successful local infrastructure measures.

Generate media coverage: Regardless of the pathway, sustained visibility, storytelling, and community involvement will help demonstrate broad support for the bond. Engage local media to highlight community testimonials and potential impact. Send press advisories ahead of key hearings and events.

5. Win or lose, debrief. The work doesn't stop.

If the bond passes: Thank voters and celebrate what the win will mean for the community. Begin implementation planning immediately and transparently. Keep the coalition engaged to ensure the bond is issued and that its requirements for community benefits and high-wage jobs are implemented and elevated. This ensures accountability and equity in how the funds are spent—and demonstrates the real impact that local initiatives can have on communities, generating momentum for future wins.

Whether victory came through a legislative vote or a public election, treat the campaign’s coalition as a long-term base for effective implementation and oversight.

If the bond falls short: Hold a debrief with the coalition to discuss what worked and what didn’t. Thank supporters and keep the coalition engaged in determining next steps. Analyze the coalition and opposition for lessons learned. The groundwork laid is not wasted and can be used for a future attempt or a scaled-down proposal. Consider revising the scope or strategy for a future attempt to pass the measure—and whether any interim steps, such as legislative hearings or community storytelling, can help deepen support for future efforts.

6. Let the implementation work begin!

Implementation is the same regardless of how the bond passed, and transparency and community engagement remain important.

Even after a bond passes, it can take time for a local government to start construction and for a completed renewable energy project to begin generating revenue. During this period, your coalition of stakeholders plays a critical role in monitoring progress and ensuring accountability. This could include establishing regular meetings for a community oversight board and creating plans for how data (e.g., hours of work performed by apprentices, revenue amount raised, and allocation of revenue) and financial audits will be tracked and made public.  Sustained coalition involvement ensures that the bond delivers on its promises, reinforces public confidence, and demonstrates the tangible benefits of community-driven clean energy initiatives.


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