NY Green Bank Annual Review 2019 – 20 and Annual Business Plan 2020 – 21 Case 13-M-0412 June 19, 2020 Contents Letter from the President of NY Green Bank .........................................................................................................1 1 NY Green Bank Overview ................................................................................................................................4 1.1 Review & Plan Purpose ...............................................................................................................................4 1.2 Mission .........................................................................................................................................................5 1.3 Key Investment Criteria ................................................................................................................................6 1.4 Other Investment Considerations ................................................................................................................6 1.4.1 Additionality ......................................................................................................................................6 1.4.2 Transformation of Clean Energy Financing Markets ........................................................................7 1.4.3 Impact & Public Benefits ...................................................................................................................7 1.4.4 Transaction Size & Participation.......................................................................................................7 1.5 Goals & Key Performance Indicators ...........................................................................................................8 1.6 Impact & Reporting ......................................................................................................................................9 2 Annual Review 2019 – 20 .............................................................................................................................. 12 2.1 Performance In the 2019 – 20 Plan Year ................................................................................................. 12 2.2 Activities Supporting Strategic Priorities in the 2019 – 20 Plan Year ....................................................... 15 2.2.1 How NYGB Supported Clean Energy Markets During the COVID-19 Crisis ................................ 15 2.2.2 How NYGB Addressed the Needs of LMI Communities ............................................................... 15 2.2.3 How NYGB Catalyzed New Markets ............................................................................................. 17 2.2.4 How NYGB Evaluated Options for Raising Private Capital ........................................................... 17 2.3 Continued Portfolio Growth and Capital Mobilization ............................................................................... 17 2.4 Maintained Strong Active Pipeline ............................................................................................................ 20 2.4.1 Conducted Public & Stakeholder Outreach ................................................................................... 21 2.4.2 Issued Targeted Solicitations & Participated in Strategic Convenings.......................................... 23 2.4.3 Issued Periodic Newsletters & Web Site Updates......................................................................... 24 2.4.4 Issued Public Reports .................................................................................................................... 24 2.4.5 Formalized Segment Coordination in Collaboration with NYSERDA Colleagues ......................... 25 2.4.6 Received External Recognition ..................................................................................................... 25 2.5 Improved Financial Performance & Remained Self-Sufficient .................................................................. 25 2.5.1 Revenues, Expenses & Net Income .............................................................................................. 25 2.5.2 Capital & Liquidity Management .................................................................................................... 27 2.6 Delivered Increasing Impact Benefits for all New Yorkers ........................................................................ 28 2.7 Performed Evaluation, Measurement & Verification ................................................................................. 29 2.7.1 Financial Market Transformation ................................................................................................... 30 2.7.2 Energy & Environmental Impact in NYS ........................................................................................ 30 2.8 Scaled NYGB Team and External Resources to Support Business Growth ............................................ 30 2.8.1 Scaled Internal Resources ............................................................................................................ 30 2.8.2 Secured External Resources ......................................................................................................... 31 2.9 Improved Risk Framework & Related Processes ..................................................................................... 31 2.10 Progress Against Plan Deliverables ......................................................................................................... 32 3 Annual Business Plan 2019 – 20 .................................................................................................................. 36 3.1 Support the NYS Clean Energy Market Recovery Following the COVID-19 Crisis .................................. 37 3.2 Build and Actively Manage the NYGB Portfolio ........................................................................................ 38 3.3 Launch New Initiative to Support Clean Energy for Disadvantaged and LMI Communities .................... 39 3.4 Mobilize Capital ......................................................................................................................................... 40 3.5 Maintain NYGB Financial Position ............................................................................................................ 40 3.6 2020 – 21 Activities to Meet Objectives & Deliverables ........................................................................... 41 3.6.1 Focus on Clean Energy for Disadvantaged Communities ............................................................ 42 3.6.2 Focus on Clean Energy and Sustainable Infrastructure Technology Segments ........................... 42 3.6.3 Monetize the NYGB Portfolio via a Secondary Market Transaction.............................................. 46 3.6.4 Focus on Impact, Metrics & Reporting .......................................................................................... 46 3.6.5 Focus on Operations and Finance ................................................................................................ 47 3.7 Plan Deliverables ...................................................................................................................................... 49 4 Glossary & Definitions .................................................................................................................................. 52 i NYGB_2020_Business_Plan_PSC_Filing_FINAL Figures Figure 1: Mission Statement .......................................................................................................................................5 Figure 2: Key Investment Criteria ...............................................................................................................................6 Figure 3: 2019 – 20 Overarching Objectives ........................................................................................................... 12 Figure 4: Investment Performance at a Glance ....................................................................................................... 13 Figure 5: Operational Performance at a Glance As of March 31, 2020 .................................................................. 14 Figure 6 Transaction Example: Inclusive Prosperity Capital ................................................................................... 16 Figure 7: Overall Investments to Date, Month-By-Month ($ millions) ...................................................................... 20 Figure 8: Transaction Status & Active Pipeline: Year-on-Year Review ($ millions) ................................................ 21 Figure 9: Cumulative Revenues vs. Cumulative Expenses ($ millions) .................................................................. 26 Figure 10: NYGB Progress Toward CEF Goals as of March 31, 2020 ................................................................... 28 Figure 11: Estimated Portfolio Lifetime GHG Emissions Reductions as of March 31, 2020 ................................... 29 Figure 12: 2020 – 21 Plan Objectives ..................................................................................................................... 37 Figure 13: Governance & Oversight Environment ................................................................................................... 68 Figure 14: Transaction Process ............................................................................................................................... 71 Figure 15: