New York’s Governor Andrew Cuomo announced the launch of the state’s Green Bank to provide financing for in-state alternative energy projects. Here is the skinny:
Governor Andrew M. Cuomo today announced the start of business operations for the New York Green Bank, which will work to stimulate private sector financing and accelerate the transition to a more cost-effective, resilient and clean energy system. The largest green bank in the nation, the NY Green Bank is seeking proposals from private-sector lenders, investors and industry participants that facilitate the financing of creditworthy clean-energy projects in New York State.
The proposed financing structures appear to put the Green Bank in the first loss position for some private sector risk:
Examples of the types of investment partnerships the NY Green Bank may engage in include credit enhancements, co-investing with the private sector in a loan fund for clean energy, loan warehousing/short-term project aggregation or other similar arrangements.
Who will be overseeing the investment process?
The NY Green Bank is a division of the New York State Energy Research and Development Authority (NYSERDA) and will operate within NYSERDA’s system of internal controls. In addition, the NY Green Bank will seek to apply banking and investment industry best practices with regard to risk management and compliance, including processes and procedures for evaluating and selecting proposals. An investment committee, which will include senior officers of the NY Green Bank and NYSERDA, will be required to approve any material financial transaction prior to closing.