Loan Loss Reserve to Catalyze Clean Energy Financing in New York State Communities

Description of goods to services to be bid:

Summary of Revisions

The following changes have been made to PON 4378 “Loan Loss Reserve to Catalyze Clean Energy Financing in New York State Communities”:

A no cost modification to PON 4378 to change the language on page 14, section 2 “Other Provisions.”

The following language will be amended in section 2 “Other Provisions”:

Current language: “Funds to be used for renewable energy, energy efficiency, health and safety and resiliency, with a majority of funds used for renewable energy and efficiency”.
Amended language: “Funds to be used for renewable energy, energy efficiency, health and safety and resiliency, with a majority of funds used for renewable energy, decarbonization and efficiency.”

Current language: “The financing of new construction is not allowed.”
Amended language: “The financing of new construction decarbonization projects is allowed.”

Current language: “Interest rates, if applicable must be fixed.”
Amended language: “Interest rates, if applicable, must be fixed for Residential customers.”

The following additional provisions will be added to section 2 “Other Provisions.”

“Qualifying measures include technology, including electrical and renewable based heating and cooling systems, carbon-free transportation, including electric and hydrogen fuel cars that support New York State’s decarbonization goals.”
“Expanded business models, including for energy services that lead to a reduction in Green House Gases, energy efficiency, energy cost savings, clean transportation, agriculture, or increase or support resiliency, decarbonization and sustainability.”
“Floating interest rates, if applicable, allowed for commercial customers, subject to interest-rate caps.”

The following additional provisions will be added to section 4 “Applicant Eligibility Requirements”

(iii); acknowledges that support available through this PON is not available for loan loss coverage for NY Green Bank capital; and (iv) is the Applicant is not applying for support under this PON for any capital funded by the NY Greenbank or maybe funded by the NY Green Bank in the future.

Program Summary
Loan Loss Reserved (LLR) PON 4378 was first issued on June 30, 2020. The purpose of LLR is to provide financial reimbursement for defined losses on individual transactions that support clean energy improvements in residential, small commercial, not-for-profit, or multifamily buildings. The PON remains open until $10,000,000 is fully awarded.

PON 4378 language was first modified in November 2022, to allow applicants to offer loans with dealer-point buydown, provided it results in a lower net present value (NPV) cost to the borrower based on the term of the loan. Such determination will be made at NYSERDA’s sole discretion. This is a change to the original PON which did not allow applicants to offer dealer-point buydowns.

NYSERDA recognize that market practices allow dealer-points and in certain cases, with longer loan-terms it is beneficial to the borrower. NYSERDA is trying to capture that with the NPV provision so applicants for the LLR are competitive with other providers in the market.

Updated to modify language for firms that maybe using NYGB capital to still apply for support for non NYGB capital

Updated to include alignment for CLCPA goals for DAC impact

Updated to include decarbonization measures for support

If changes are made to this solicitation notification will be posted on NYSERDA’s website at: www.nyserda.ny.gov/funding-opportunities 

Eligibility/Qualifications Requirements/Preferences:

Applicant Eligibility Requirements
By submitting an application hereunder, Applicant hereby represents to NYSERDA, as of the date of its application and on the date that it is approved as a Finance Provider: Applicant is (i) a Financial Institution as defined herein, or (ii) a non-Financial Institution that is authorized to do business in New York State and fulfills each of the requirements set forth in Section VI hereof; and (iii) is not currently receiving financing support through the NY Green Bank.