Loan Loss Reserve to Catalyze Clean Energy Financing in New York State Communities

Description of goods to services to be bid: Summary of Revisions: The following changes have been made to PON 4378 “Loan Loss Reserve to Catalyze Clean Energy Financing in New York State Communities”: The following language will be amended page 1 “Other Provisions”:• Residential (1-4 unit) Sector: Five hundred thousand dollars ($500,000)• Small Commercial Sector: Five hundred thousand dollars ($500,000)• Multifamily (5+ unit) Sector: One million dollars ($1,000,000)• Not-for-Profit Sector: One million dollars ($1,000,000) New updated language on page 1: • Residential (1-4 unit) Sector: One million dollars ($1,000,000)• Small Commercial Sector: One Million Dollars ($1,000,000)• Multifamily (5+ unit) Sector: One million dollars ($1,000,000)• Not-for-Profit Sector: Five hundred thousand dollars ($500,000) The following additional provisions will be added to Program Summary on Page 1 • Clean Transportation: Support for Electric Vehicles including School Bus, Medium and Heavy-Duty Truck TRAC Leasing support: One million dollars ($1,000,000) The Following language is added to “Definition on Page 6 & 7” (w) A qualified TRAC lease or other acceptable leasing structure for Electric School Buses, Medium and Heavy-Duty Trucks and Buses. (aa) “Target Clean Transportation Sectors”: are (1) Electric School Buses; (2) Medium Duty Electric Trucks and Buses; (3) Heavy Duty Trucks and Busses. The Following language is added to “Introduction on Page 7” Clean Transportation Sector SupportThe goal of this program is to increase adoption of Clean Transportation opportunities in the Target Clean Transportation Sectors in New York State. NYSERDA will enter into agreements with qualified Clean Transportation Providers to provide a portfolio residual value reserves (“RVR”) for coverage against their qualified financing portfolios for Target Clean Transportation Sectors, by providing RVR on individual transactions, up to a maximum Loan Loss Reserve Award Amount. The initial Loan Loss Reserve Award Amount will be subject to the maximum amount as defined under the eligible sectors. NYSERDA reserves the right to adjust this initial award after one year; adjustments can include reduction or increase of award based on portfolio growth, performance, and availability of funds; provided, no such adjustment will affect NYSERDA’s obligation to a Finance Provider with respect to outstanding Eligible Financing Agreements Following Additions were made to Section VIII Loan Loss Reserve/Credit Enhancement on Page 17 For the Clean Transportation Sector, the Loss Percentages, also referred to as Residual Value Reserves (“RVR”) the terms below apply. For Electric School Bus (“ESB”) TRAC leases, Medium and Heavy-Duty Trucks a RVR will be provided as follows:a) For TRAC leases of up to five years or longer terms, subject to NYSERDA credit review, the ESB Residual value (“RV”) for the terminal lease value can range between [20% - 50%], subject to NYSERDA credit review requirements.b) For TRAC leases the RVR coverage provided by NYSERDA to cover the RV downside (drop in terminal residual value) may range between [10% - 30%]c) Subject to review, NYSERDA may charge the applicant firm a coverage spread of [2.5%] based on the notional RVR amount provided for RV coverage. d) Subject to NYSERDA credit, policy and DAC requirements review, the applicant firm will absorb the downside variability of RV for the initial [0% - 10%]e) For avoidance of doubt, NYSERDA RV coverage will only cover downside RV value - as per the RVR coverage provided, subject to a deductible and the upper limit of the RVR coverage range. Summary of Revisions The following changes have been made to PON 4378 “Loan Loss Reserve to Catalyze Clean Energy Financing in New York State Communities”: A no cost modification to PON 4378 to change the language on page 14, section 2 “Other Provisions.” The following language will be amended in section 2 “Other Provisions”: Current language: “Funds to be used for renewable energy, energy efficiency, health and safety and resiliency, with a majority of funds used for renewable energy and efficiency”. Amended language: “Funds to be used for renewable energy, energy efficiency, health and safety and resiliency, with a majority of funds used for renewable energy, decarbonization and efficiency.” Current language: “The financing of new construction is not allowed.”Amended language: “The financing of new construction decarbonization projects is allowed.” Current language: “Interest rates, if applicable must be fixed.”Amended language: “Interest rates, if applicable, must be fixed for Residential customers.” The following additional provisions will be added to section 2 “Other Provisions.” “Qualifying measures include technology, including electrical and renewable based heating and cooling systems, carbon-free transportation, including electric and hydrogen fuel cars that support New York State’s decarbonization goals.”“Expanded business models, including for energy services that lead to a reduction in Green House Gases, energy efficiency, energy cost savings, clean transportation, agriculture, or increase or support resiliency, decarbonization and sustainability.”“Floating interest rates, if applicable, allowed for commercial customers, subject to interest-rate caps.” The following additional provisions will be added to section 4 “Applicant Eligibility Requirements” (iii); acknowledges that support available through this PON is not available for loan loss coverage for NY Green Bank capital; and (iv) is the Applicant is not applying for support under this PON for any capital funded by the NY Greenbank or maybe funded by the NY Green Bank in the future. Program Summary Loan Loss Reserved (LLR) PON 4378 was first issued on June 30, 2020. The purpose of LLR is to provide financial reimbursement for defined losses on individual transactions that support clean energy improvements in residential, small commercial, not-for-profit, or multifamily buildings. The PON remains open until $10,000,000 is fully awarded. PON 4378 language was first modified in November 2022, to allow applicants to offer loans with dealer-point buydown, provided it results in a lower net present value (NPV) cost to the borrower based on the term of the loan. Such determination will be made at NYSERDA’s sole discretion. This is a change to the original PON which did not allow applicants to offer dealer-point buydowns. NYSERDA recognize that market practices allow dealer-points and in certain cases, with longer loan-terms it is beneficial to the borrower. NYSERDA is trying to capture that with the NPV provision so applicants for the LLR are competitive with other providers in the market. Updated to modify language for firms that maybe using NYGB capital to still apply for support for non NYGB capital Updated to include alignment for CLCPA goals for DAC impact Updated to include decarbonization measures for support If changes are made to this solicitation notification will be posted on NYSERDA’s website at: www.nyserda.ny.gov/funding-opportunities Eligibility/Qualifications Requirements/Preferences: Applicant Eligibility Requirements By submitting an application hereunder, Applicant hereby represents to NYSERDA, as of the date of its application and on the date that it is approved as a Finance Provider: Applicant is (i) a Financial Institution as defined herein, or (ii) a non-Financial Institution that is authorized to do business in New York State and fulfills each of the requirements set forth in Section VI hereof; and (iii) is not currently receiving financing support through the NY Green Bank. Service-Disabled Veteran-Owned Set Aside: No Due date:12/31/2025 3:00 PM December 31, 2025 Contract term: N/A County(ies): All NYS counties Location: New York State Business entities awarded an identical or substantially similar procurement contract within the past five years: none