NY sets stage for national energy-efficiency project financing
August 16, 2013 | By
Barbara Vergetis Lundin
The New York State Energy Research and Development Authority (NYSERDA) has raised $24.3 million in its first-ever issuance of revenue bonds to finance loans for New York consumers for residential energy-efficiency improvements. The Residential Energy Efficiency Financing Revenue Bonds were issued as part of NYSERDA's Green Jobs-Green New York (GJGNY) program, a statewide initiative to promote energy efficiency and the installation of clean technologies to reduce energy costs and greenhouse gas emissions, support sustainable community development and create opportunities for green jobs. "The innovative approach used to secure these bonds addresses financial market barriers that impede the flow of private capital to support clean-energy projects and provides a potential national model for other states interested in providing low-cost financing for energy efficiency projects," said Francis J. Murray Jr., president and CEO, NYSERDA. In an innovative effort to ensure the success of the bond sale, the bonds have been rated AAA/Aaa by Standard & Poor's and Moody's, based upon a guarantee from the New York State Environmental Facilities Corporation (EFC) through its State Revolving Fund (SRF) program. EFC manages the largest SRF in the nation with nearly $13 billion in assets and provides AAA-rated financial assistance to local governments and public entities to finance clean water and drinking water projects. EFC determined these bonds qualified for financial assistance under the Clean Water SRF because of the reductions in fossil fuel combustion and related reductions in air pollutants being emitted and deposited into New York State's water bodies. "New York is the first state in the nation to utilize the SRF to support initiatives that address atmospheric depositions that impact public health and pollute critically-important water bodies," said EFC President and CEO Matthew Driscoll. The proceeds of the bonds will be used to replenish the $42.5 million GJGNY revolving loan fund established under the Green Jobs-Green New York Act of 2009. Through its Home Performance with ENERGY STAR® Program, NYSERDA offers residential consumers GJGNY loans, which include On-Bill Recovery Financing authorized by Governor Cuomo's Power NY Act legislation. The Home Performance program is the largest and longest running program of its kind in the U.S. and takes a "whole house" approach that uses building science to identify and install cost-effective measures to reduce energy consumption and increase energy efficiency throughout New York. For more: Related Article: Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com |