Financing Fund for Decarbonization Projects in Disadvantaged Communities

$20 million State Energy Financing Fund is available for entities offering affordable financing for decarbonization projects that deliver benefits to disadvantaged communities. This financing vehicle provides a complementary funding opportunity for entities also applying to the U.S. Department of Energy Loan Programs Office Title 17 Clean Energy Financing Program’s Section 1703, to support capital deployment for projects in New York State that reduce emissions from the built environment, including buildings and other infrastructure.

Through the new program, administered by the New York State Energy Research and Development Authority (NYSERDA), direct capital support and credit enhancements are now available to entities actively working with or developing plans to apply to the LPO Title 17 Clean Energy Financing Program’s Section 1703 to deploy capital into decarbonization projects in New York State. NYSERDA seeks to support applicants that will provide loans or other forms of financing or direct support for clean energy and sustainable infrastructure projects, with a focus on projects that reduce emissions in buildings. Eligible projects must be decarbonization interventions that are designed to maintain or reduce customer energy bills, maintain or improve building comfort, and deliver resilient, durable solutions, or otherwise contribute to greenhouse gas emissions reductions.

Awards are contingent upon the applicant’s approval for the federal LPO Title 17 Clean Energy Financing Program’s Section 1703 financing. Funding will be awarded on a rolling basis and individual awards may not exceed the lesser of $5 million or 3 percent of an eligible applicant’s proposed project portfolio amount, subject to structuring terms and applicable federal, state, and local regulations. Applicants will be required to report on the number and dollar amount of investments into New York’s DACs funded through their respective Title 1703 facilities. More information about this funding is available on NYSERDA’s website.