Cuomo Starts $1 Billion New York Green Bank for Energy Lending

September 11, 2013 by  
Filed under Green Energy News

New York Governor Andrew Cuomo is
starting a $1 billion bank to provide loans to projects that
generate power without using fossil fuels, a move meant to push
private lenders into the clean-energy market.

The Green Bank, promised by the 55-year-old
Democrat in January, will use money collected from utility bills
already set aside for energy-efficiency programs as seed money.
In a petition filed yesterday, he asked that the New York State
Public Service Commission release $165 million.

“We will leverage public dollars to attract private sector
investment into building a new clean energy economy that will
help make our state greener and create jobs,” Cuomo said in a
statement e-mailed today. The bank will apply “limited state
resources to drive investment into critical areas of the

Cuomo, considered a potential presidential candidate, must
confront a stigma surrounding public investment in clean
technology since 2011, when Fremont, California, solar-cell
manufacturer Solyndra LLC filed for bankruptcy after receiving a
more than $500 million federal loan. The bank will track and
evaluate investments, and share the data with private lenders to
help build the market, according to the petition.

“By increasing overall market activity, targeting market
inefficiencies, and creating greater transparency around risk
and comfort among private investors, the Green Bank can reduce
the overall cost of capital,” the petition said.

The bank, to be run by the New York State Energy Research
and Development Authority, will package loans for resale into
the secondary market, creating an opportunity for pension funds
and other institutions to invest, the petition said. It will
also provide guarantees to private lenders that it will absorb a
portion of losses incurred on specific loans.

The bank’s funding will grow as loans are repaid or sold,
without additional funds from utility customers, the petition
said. In 10 years, Cuomo expects the bank to have $8 billion.

To contact the reporter on this story:
Freeman Klopott in Albany, New York, at;

To contact the editor responsible for this story:
Stephen Merelmanat

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