The NCUA has approved a field of membership for the proposed newGreen Energy Federal Credit Union, its organizer and sponsorsaid.

The initial FOM will be a number of businesses and organizationsinvolved in residential and commercial energy renewal andefficiency improvements, said AFC First Financial.

The company said it is a provider of energy lending and rebateprograms and manages a network of more than 3,000 approvedcontractors who work in selling, installing and servicinghigh-efficiency HVAC, weatherization and other improvements.

AFC First Financial said it also is seeking designation as alow-income credit union and Community Development FinancialInstitution, as well as an FOM that would include an underservedarea of approximately 100,000 people in the area around itshometown of Allentown, Pa.

Green Energy FCU organizer W. Robert Hall, a Virginia-basedconsultant, authored a Filene Research Institute study titledFinding Sustainable Profits: Green Lending in CreditUnions that found more credit unions are offering loansfor energy improvements. Hall said the new credit union also aimsto serve that need with affordable financing.

“Research has found that the average low-income household spendsas much as 20% of total monthly income on energy costs,” Hall said. “Lowering these costs can play an important part ina broader effort to build wealth and economic opportunity in thesehouseholds and communities.”

Peter Krajsai, AFC First's chairman/CEO, said, “Many of thecompanies and their employees in our contractor network haveexpressed a strong interest in having access to a credit union thatunderstands their financial services needs and that shares theircommitment to helping people and businesses save money by loweringtheir energy costs and supporting the adoption of clean energyalternatives.”

John Hayes, the company's president and chief operating officer,added, “We also work with a number of nonprofit organizations whosemembers have said they would like to be able to have the money intheir personal checking and savings accounts support the adoptionof energy efficiency and renewable energy improvements in both theresidential and commercial sectors.”

They said work is under way to complete the charter applicationby the end of 2012.