NYSERDA has issued revenue bonds to finance loans for residential energy efficiency projects under its GJGNY Program.

Green Jobs Green New York Constituency Based Organizations in NYC (prattcenter)

On August 13, 2013, the New York State Energy Research and Development Authority (NYSERDA) issued $24.3 million in energy efficiency revenue bonds to finance residential energy efficiency improvement programs across the state.  The revenue bonds were issued under the Green Jobs-Green New York (GJGNY) Program, a statewide initiative to stimulate energy efficiency and clean energy technologies, in order to reduce energy costs and carbon emissions, and create green jobs.  The bond proceeds will go to the $42.5 million GJGNY revolving loan fund established in 2009.

The revenue bonds bear a AAA/Aaa rating backed by a guarantee from the New York State Environmental Facilities Corporation (EFC), which determined their eligibility for financial assistance under the Clean Water State Revolving Fund (SRF) program.  EFC provides AAA-rated financing to local governments and public entities for clean water and drinking water projects.  It found that the revenue bonds would reduce fossil fuel combustion and air pollutant deposition in water bodies.

NYSERDA sold the Qualified Energy Conservation Bonds at an average interest rate of approximately 3.21 percent for an average term of approximately 6.8 years.  The availability of federal interest subsidy for the bonds could result in a net interest rate of approximately 0.48 percent.  The subsidy and EFC guarantee have facilitated low-interest rate GJGNY loans.

NY State is the first U.S. state to utilize a SRF to support initiatives addressing air and water pollution.  The collaborative effort of NYSERDA and EFC represents an innovative and nationally replicable approach that other states could adopt to finance energy efficiency projects.  NYSERDA’s Home Performance program, which offers residential GJGNY loans, uses a science-based approach to identify and install cost-effective technologies to reduce energy consumption and enhance energy efficiency.  The GJGNY Program delivers services with the support of Constituency Based Organizations that recruit building owners for energy assessment and financing and encourage individuals to utilize clean energy training initiatives.