Senate Bill S6790

                                 
BILL NUMBER: S6790

SPONSOR: GRIFFO
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to the examina-
tion of the Green Bank

 
PURPOSE:

To require an annual examination of the Green Bank by the Superintendent
of Financial Services using the same standards applicable to loans and
investments by financial institutions.

 
SUMMARY OF PROVISIONS:

Section 1 would add a new section 1859-a to the public authorities law
to require that, at least once in each calendar year, the Green Bank, a
division of NYSERDA, shall be examined by the Superintendent of Finan-
cial Services for the purposes of determining the Green Bank's net
worth, the soundness of its management and operating policies and the
rate of return on its loans and investments, and any losses on such
              

loans and investments. The Green Bank would not be deemed a banking
organization , however, the same standards for examination of loans and
investments by financial institutions would apply. NYSERDA would pay for
the cost of such examinations and copies of each examination report
would be furnished to NYSERDA, the comptroller and the respective Chairs
and Rankers of the Senate Finance Committee and the Assembly Ways and
Means Committee.

Section 2 provides that the bill would take effect immediately.

 
EXISTING LAW:

The New York Green Bank is currently a division of the New York Research
and Development Authority (NYSERDA), therefore, oversight is provided by
NYSERDA and Green Bank personnel with very little outside project review
and approval.

 
JUSTIFICATION:

The New York Green Bank (NYGB) was created as a $1.0 billion investment
fund to accelerate clean energy deployment in New York State. The $1.0
billion is provided to NYSERDA by ratepayers over a ten year period via
several clean energy initiatives including the Clean Energy Fund. The
NYGB's mission is to encourage private investment in renewable electric
generation by using the NYGB funds as leverage. Because the NYGB is a
division of NYSERDA, oversight of the NYGB is provided by NYSERDA and
Green Bank personnel.

This bill would require the Green Bank, at least annually, to undergo a
fiscal examination by the Superintendent of Financial Services at the
same standard of examination that applies to loans and investments by
financial institutions. Transparency is a vital component in the success
of clean energy programs funded by ratepayer dollars. This legislation
will facilitate transparency and will lend credence to the initiatives
of NYSERDA and the Green Bank.

 
LEGISLATIVE HISTORY:
2023-24 - S.4615- Energy and Telecommunications Committee

2021-22 - S.  4737 - Energy and Telecommunications Committee.

2019-20 - S. 5077 - Energy and Telecommunications Committee.

2018 - S. 7647 - Rules Committee.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.