California Alternative Energy and Advanced Transportation Financing Authority

Qualified Energy Conservation Bonds (QECBs)

Designed to provide low-interest financing to promote the use of alternative energy and energy efficiency in State, Local, and Tribal Government facilities.

Contact Information

For general questions regarding QECBs please visit the California Debt Limit Allocation Committee�s (CDLAC) website or contact CDLAC.

If you have any questions about CAEATFA's Bond Financing programs, please contact CAEATFA at (916) 651-8157.

Connect With Us

Sign Up to Get CAEATFA Information Contact Us!

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is the main state issuer of Qualified Energy Conservation Bonds (QECB). These bonds are designed to provide a rate savings for the purchaser which allows the public entity to receive low-interest financing upon the sale of the bonds. For example, if the credit amount is $100 and the bondholder is in the 30 percent tax bracket, the credit provides a $79 benefit to the bondholder.

QECBs can be used for projects that reduce energy consumption in publicly owned buildings, implementing green community programs, rural development involving the production of electricity from renewable energy resources, technologies that capture and sequestration of carbon dioxide produced by fossil fuels, technologies that reduce energy use, and more.

There is no QECB Volume Cap Allocation available from the State of California.

Allocation Process

The total national volume cap will be allocated to the state based on the proportion each state�s population bears to the national population. States are then to allocate to �large local governments� (defined as any municipality or county having a population of 100,000 or more) based on the proportion each large local government�s population bears to the state�s total population. It has not yet been determined what entity within state government will make the actual allocations to large local governments and direct the allocation of volume cap remaining with the state. As soon as the state process is determined, the website will be updated.

CAEATFA�s Role

CAEATFA may serve as a qualified applicant to CDLAC and a conduit issuer of the QECB bonds and facilitate the bond process. CAEATFA is not responsible for payment and only acts as a conduit between the borrower and bond purchaser. CAEATFA may, upon request, gather bids from financial institutions to ensure competitive financing, including private placement of these bonds. Please contact CAEATFA or view the draft applications for more information.

Mechanics of a QECB

This is a �tax-credit bond� designed to provide the bond purchaser with a 70% interest subsidy in federal tax credits by the United States government. This subsidy provides a rate savings for the purchaser which allows the public entity to receive low-interest financing upon the sale of these bonds. For example, if the credit amount is $100 and the bondholder is in the 30 percent tax bracket, the credit provides a $79 benefit to the bondholder. The credit rate is updated daily, where the higher the rate translates to a higher benefit for the bond purchaser who in turn can provide lower interest rates.