GJGNY Advisory Council Meeting April 15, 2016 2 Agenda Program - PowerPoint PPT Presentation

GJGNY Advisory Council Meeting April 15, 2016

2 Agenda • Program Status • Future Funding Realities • Program Changes • Analysis of Options • Near Term Steps

3 Status – Total Loan Volume $90.0 Millions $79.5 $80.0 Addition of PV loans $70.0 effective April 2014 has $60.0 resulted in dramatic increase in GJGNY loans $50.0 $36.6 issued. $40.0 $30.0 $19.5 $17.4 $20.0 $10.8 $10.0 $1.2 $0.0 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 +116% +55% +12% +95% Increase from Prior Yr.

4 Status – Energy Efficiency vs PV 100% 90% $10.9 80% 70% $47.9 60% 50% $1.2 $10.8 $17.4 $19.5 40% $25.7 30% 20% $31.2 10% 0% FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 EE PV

5 Status – Loan Underwriting Program making increasing 100% $0.9 $1.8 $2.0 $5.1 $14.5 90% proportion of loans under 80% Tier2 criteria allowing 70% consumers who don’t meet 60% traditional criteria access 50% $1.2 $9.9 $17.7 $15.3 to financing. $31.5 $65.0 40% 30% 20% 10% 0% FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 Tier 1 Tier 2

6 Status – By Income Segment Energy Efficiency Loans PV Loans 100% 100% 11.30% 17.27% 16.83% 18.78% 90% 90% 28.30% 34.98% 80% 38.69% 80% 50.02% 70% 70% 42.70% 41.01% 40.48% 60% 60% 46.76% 38.88% 50% 50% 34.26% 47.69% 40% 40% 30% 30% 39.09% 46.0% 42.2% 40.7% 20% 20% 36.0% 32.8% 27.1% 10% 10% 17.3% 10.9% 0% 0% FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY14-15 FY15-16 <80% 80-150% >150% <80% 80-150% >150% Decreasing proportion of program loans going to LMI consumers (< 150% AMI)

7 Status – Revolving Loan Fund • Initially funded with $26.6M • Subsequently increased $35.5M (incl $27M in FY15-16) • Funding of Tier2 loans and bond overcollateralization required to finance Tier1 loans has exhausted balance

8 Future Funding Realities • FY15-16 RGGI Operating Plan allocated $27M in funding to support $80M in loans • Projected FY16-17 $115M in loans. Based on current interest rates, this would require $47M in RGGI funds • This level of funding is simply not available this year, nor in future years • RGGI estimates are still being finalized but FY16-17 availability to support loans certainly will be below FY15-16 level ($27M) • Process for finalizing RGGI funding is through approval of RGGI Operating Plan by NYSERDA Board later this year

9 Process for Feedback • Work collaboratively with Advisory Council for consensus on changes and effective date for changes • We present a starter proposal for discussion - and welcome amendments and improvements • Must reach consensus with Advisory Council over the next 30 days

10 Business as Usual Upfront Surplus/ RGGI (Deficit) • At current 3.49% rates and Projected Funds Over Loans Required Term current level of Tier2 loans, FY 16-17 @ 3.49% @ 3.49% EE <80% $7.5 $1.8 -$0.8 anticipated RGGI funds may EE 81-150% $10.5 $2.5 -$1.2 EE >150% $11.9 $2.9 -$1.3 only cover 5-6 months of activity; Total EE Tier1 $29.9 $7.2 -$3.3 EE Tier2 <80% $3.5 $3.5 -$0.3 less if there is a “land rush” EE Tier2 81-150% $2.9 $2.9 -$0.3 EE Tier2 >150% $1.2 $1.2 -$0.1 Total EE Tier2 $7.6 $7.6 -$0.7 • Stop-start approach would be Total EE $37.5 $14.8 -$4.0 disruptive PV < 80% $3.3 $1.0 -$0.5 PV 81-150% $18.3 $5.3 -$2.9 PV > 150% $43.5 $12.6 -$7.0 Total PV Tier1 $65.1 $18.9 -$10.4 PV Tier2 <80% $1.7 $1.7 -$0.2 PV Tier2 81-150% $8.2 $8.2 -$1.1 PV Tier2 >150% $2.5 $2.5 -$0.3 Total PV Tier2 $12.4 $12.4 -$1.6 Total PV $77.5 $31.3 -$12.0 Total $115.0 $46.1 -$16.0

11 Starter Proposal for Interest Rates Principles • Preserve OBR Projected Upfront Projected Upfront • Preserve access to funding for all Loans Funds Loans Funds FY 16-17 Rate Required FY 16-17 Rate Required • Special attention to access for households which otherwise lack EE <80% $7.5 3.49% $1.8 EE <80% $7.5 3.49% $1.8 access EE 81-150% $10.5 4.99% $1.6 EE 81-120% $6.6 4.99% $1.0 Proposal Elements EE >150% $11.9 6.99% $0.4 EE >120% $15.8 7.99% $0.0 Total EE Tier1 $29.9 $3.8 Total EE Tier1 $29.9 $2.8 • No change for < 80% AMI (3.49%) EE Tier2 <80% $3.5 3.49% $3.5 EE Tier2 <80% $3.5 3.49% $3.5 • Expands low rate for up to 120-150% AMI: EE Tier2 81-150% $2.9 4.99% $2.9 EE Tier2 81-120% $2.1 4.99% $2.9 • 4.99% EE/5.99% PV EE Tier2 >150% $1.2 6.99% $1.2 EE Tier2 >120% $2.0 7.99% $1.2 Total EE Tier2 $7.6 $7.6 Total EE Tier2 $7.6 $7.6 • Sets higher rate for > 120-150% AMI: Total EE $37.5 $11.4 Total EE $37.5 $10.4 • 6.99%-7.99% EE/7.99%-9.99% PV PV < 80% $3.3 3.49% $1.0 PV < 80% $3.3 3.49% $1.0 Comments PV 81-150% $18.3 5.99% $2.9 PV 81-120% $10.1 4.99% $2.2 PV > 150% $43.5 7.99% $2.2 PV > 120% $51.7 9.99% $0.0 • Will monitor impacts of changes Total PV Tier1 $65.1 $6.1 Total PV Tier1 $65.1 $3.2 • May require additional changes or limiting loan approvals to PV Tier2 <80% $1.7 3.49% $1.7 PV Tier2 <80% $1.7 3.49% $1.7 availability of funds PV Tier2 81-150% $8.2 5.99% $8.2 PV Tier2 81-120% $5.4 4.99% $8.2 PV Tier2 >150% $2.5 7.99% $2.5 PV Tier2 >120% $5.3 9.99% $2.5 • Still does not meet likely budget constraints Total PV Tier2 $12.4 $12.4 Total PV Tier2 $12.4 $12.4 Total PV $77.5 $18.5 Total PV $77.5 $15.6 Total $115.0 $29.9 Total $115.0 $26.0

12 Near Term Steps • Confirm pipeline – EFS to send letters to consumers with prior lapsed approvals/preapprovals – Consumers will have 30 days to complete requirements or else approval/preapproval voided – This will confirm funding required for pipeline • New preapprovals/approvals will adhere to expiration dates in order to manage pipeline commitments • Enlist Advisory Council as Working Group to debate and refine proposals • Set 2 meetings – in 2 and 4 weeks – to engage • Decide on go-forward approach within 30 days