California Pollution Control Financing Authority

Tax-Exempt Bond Financing Program

Designed to recycle useful materials, deliver clean water and safely handle solid waste and sewage.


The CPCFA Tax-Exempt Bond Financing Program facilitates low cost capital through private activity, tax-exempt bonds. The securities pay for acquisition, construction or installation of qualified pollution control, water furnishing, waste disposal, waste recovery facilities and equipment.

Tax-exempt bond financing assists qualified borrowers to get lower interest than through conventional loans.

The California Pollution Control Financing Authority (CPCFA) is actively issuing Green Bonds to environmental projects meeting commonly accepted standards for climate investments. 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.

Types of projects, which may qualify for tax-exempt bond financing, include:

  • Curbside collection facilities
  • Recycling facilities
  • Composting facilities
  • Materials recovery facilities
  • Transfer station
  • Landfills
  • Waste-to-energy facilities
  • Qualified solid waste or hazardous waste disposal projects
  • Waste recovery facilities
  • Purchase of collection vehicles and residential waste containers
  • Water Furnishing Facilities
  • Wastewater Treatment Facilities

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.

Prospective borrowers should contact bond counsel to help determine if a proposed project qualifies under federal law. Bond counsel must be listed on the State Treasurer's Office list of approved firms.

Once eligibility is determined, contact CPCFA staff to begin the application process.

Allocation is provided by the California Debt Limit Allocation Committee.