California Pollution Control Financing Authority

CPCFA Tax-Exempt Bond Program Issuance Process


The process of issuing a bond or note with CPCFA includes four phases.

Phase 1: Application for CPCFA Initial/Inducement Resolution

For this phase it is necessary to engage bond counsel. An approved initial or inducement resolution is an important milestone regarding the inclusion of eligible project costs in the proposed issuance. It is not a commitment to issue a bond or note.

Phase 2: Application for CPCFA Final Resolution and Tax Equity and Fiscal Responsibility Act (TEFRA)

In phase 2 the applicant provides documentation that the project(s) for which the issuance is proposed has approval from the local, regional, state, and/or federal authorities having jurisdiction as well as completed California Environmental Quality Act (CEQA) approval or exemption. At this phase it is necessary to have a commitment from an underwriter or direct bank purchaser.

Phase 3: CPCFA Final Resolution Approval and California Debt Limit Allocation Committee (CDLAC) Allocation

All the terms of the proposed issuance must be established and the bond or note documents prepared before the issuance is presented to the CPCFA and CDLAC Boards. The approval by the CPCFA and CDLAC Boards results in a commitment to issue a bond or note.

Phase 4: CPCFA Issuance and Compliance

The issuance closing date is coordinated between the applicant, financing team, and CPCFA. Coordination to fulfill compliance requirements continues throughout the life of the issuance, until repaid or refunded.

More information about each phase is in the Program Manual. The Program Manual also includes information about refunding, draw-down request, and post-issuance request.