New York City Energy Efficiency Corporation Climate Access Fund
NYCEEC is the country’s first local green bank, established in 2010 and beginning operations in May 2011. It was initially capitalized using Energy Efficiency and Conservation Block Grant Program monies made available to the City of New York (“the City ”) and NYSERDA through the American Reinvestment and Recovery Act (ARRA). The City initially established NYCEEC as a component unit. In the Fall of 2012, NYCEEC received approval to become a 501(c)(3) organization, improving its ability to cost-effectively receive philanthropic funding and maintain a sustainable, self-perpetuating business model where profits are reinvested in generating impact. In the decade-plus since its founding, NYCEEC has leveraged its initial funding to achieve deep impact. From an initial capital base of $34.4 million from ARRA, NYCEEC has now mobilized over $430 million of capital for energy efficiency and clean energy projects across various real estate sectors including multifamily, commercial, institutional, and industrial, marking a multiple of more than 12X the initial federal capital. During this time, NYCEEC has expanded and diversified its capital base, while also receiving philanthropic and public sector support to supplement its operations and expand its lending footprint throughout the Northeast and mid-Atlantic states.
NYCEEC’s areas of focus have also evolved and grown. First, as technologies and decarbonization strategies have developed, NYCEEC’s lending portfolio has expanded to include not only energy efficiency but also electrification projects, net-zero-energy (NZE) buildings, community solar, and solar plus storage. Second, while lending remains core to NYCEEC’s activity, the organization has strategically expanded to offer advisory services for emerging green banks, investing in strengthening green financing capacity and growing the green bank map. NYCEEC has also strengthened its organizational focus on serving Low- to Moderate Income (LMI) communities and driving toward an equitable clean energy transition.
In NYCEEC’s Fiscal Year 2022 (July 2021-June 2022), 93% of units in NYCEEC-financed projects were affordable units. NYCEEC has long been a leader in providing financing solutions in affordable housing. For example, a 2014 project at Marcus Garvey Apartments was the first-ever battery storage microgrid installation at a low-income property in the greater NYC area. This leadership in underserved market segments was formalized a few years ago in NYCEEC’s updated vision statement, which is for energy efficiency and clean energy financing for buildings to achieve scale and be accessible to all. In NYC, legislation is accelerating activity in building decarbonization. In April 2019, the City Council enacted Local Law 96 of 2019, which established a Commercial Property Assessed Clean Energy (i.e., CPACE) financing program. NYCEEC is the Administrator of the program, which will accelerate green building investment by supporting long-term, fixed-rate financing. As Administrator, NYCEEC is actively engaged in ensuring its success and supporting the expansion of financing options. NYCEEC continues to evolve and uncover pathways to deepen its impact. Active for more than a decade, NYCEEC has forged a leadership role in financing clean energy and energy efficiency, especially in underserved market segments. The next decade will bring new challenges and opportunities, and NYCEEC will continue to evolve to meet them.