CPCFA Program Overview
As a “conduit issuer” of tax-exempt private activity bonds, CPCFA is able to facilitate low cost financing to qualified waste and recycling projects. Other projects to control pollution and improve water supply can qualify for tax-exempt financing as allowed by federal tax law. Examples of recent assistance include projects to purchase clean-air vehicles by waste companies, construct and operate anaerobic digesters, recycle used oil, convert animal waste to clean burning fuel, and develop construction and demolition debris recycling programs. Bonds issued under this division shall, whenever practical, be aligned with generally recognized principles and best practice guidelines for financing climate mitigation, adaptation or resilience projects.
In addition, CPCFA administers the California Capital Access Program (CalCAP) which helps participating financial institutions extend credit to small businesses through microloans and larger loans for start-up, expansion and working capital up to $20 million.
CPCFA also assists with the clean-up of contaminated sites through a $60 million grant and loan program and a site-assessment loan program known as the California Recycle Underutilized Sites (CALReUSE) Assessment and Remediation Programs. CALReUSE assists with the creation of housing in California. The assessment and remediation of brownfield properties are critical steps in transforming vacant and underutilized properties to expand California’s housing inventory and accelerate local economic development opportunities, particularly in disadvantaged communities.
CPCFA partners with sister state agencies including the California Air Resources Board (CARB) and the California Energy Commission (CEC) to achieve the State’s environmental policy objectives by administering high-impact financing programs designed to assist regulated entities and other stakeholders with accessing private capital.
The CalCAP CARB Heavy-Duty Vehicle Air Quality Loan Program is a loan loss reserve program, which may provide up to 100% coverage on losses from certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans to small fleet owners.