California's Green Bank

The State Treasurer’s Office (STO) informally serves as California’s Green Bank, helping finance projects that support the state’s climate and sustainability goals, while simultaneously creating good jobs and promoting economic development in California communities. In addition to the STO and financing authorities within its purview, the California Infrastructure and Economic Development Bank (IBank) also plays a role.

Green Bank initiatives include investing in bonds that finance green projects, financing for clean air and water projects, and incentives for energy efficiency and renewable energy technology companies.

Assisting Businesses

Sales Tax Exclusion

Supports reduced greenhouse gas emissions by providing incentives to California-based manufacturers that promote alternative energy, recycling, advanced transportation and clean jobs creation.

Clean Diesel Truck Lending

Credit enhancement program made it easier for small businesses to comply with California’s clean air regulations by expanding their access to loans used to buy new diesel trucks or buses or to retrofit their existing vehicles, from 2009-2023. Following this model, programs to support purchase of ZE vehicles and infrastructure are under development.

Tax-Exempt, Private Activity Bonds

Provides companies with tax-exempt financing for projects which turn solid waste into energy or usable products, improve wastewater treatment, and provide high-quality drinking water. These projects reduce greenhouse gases and other forms of pollution to improve the environment in a variety of other ways. These projects meet commonly accepted standards for climate investments and can be issued as Green Bonds.

CALReUSE Brownfields Assessment and Remediation

Paves the way for cleaning up and developing contaminated properties by providing loans and grants to assess and remediate contamination so that vacant and underutilized properties can be transformed to expand California’s housing inventory and accelerate local economic development opportunities. Currently seeking additional funding since existing funding is exhausted.

Small Business Credit Enhancements

Makes it easier for small businesses to obtain loans for electric vehicle charging stations, Americans with Disabilities Act compliance, seismic safety and more.

GoGreen Business Energy Financing

Encourages small businesses to invest in energy-saving upgrades by expanding their access to private capital for energy efficiency upgrades.

GoGreen Affordable Multifamily Energy Efficiency Financing

Facilitates attractive private capital financing for energy efficiency improvements to multifamily properties serving lower-income Californians.

Helping Consumers

Property Assessed Clean Energy Loss Reserve

Encourages communities to allow their residents to pay for clean energy improvements on their property tax bills by mitigating the potential risk to lenders.

GoGreen Home Energy Financing

Helps California residents improve the energy efficiency of their homes by facilitating attractive rates and terms on loans for approved energy retrofits.

Investing in Clean Energy

World Bank Green Bonds

Since April 2009, the Treasurer’s office has used funds from the Pooled Money Investment Account, which it uses to manage the state’s cash flow and strengthen the financial security of local governments, to purchase $1,500 million of World Bank Green Bonds. These bonds combat climate change by financing renewable energy, energy efficiency and mass transportation projects throughout the world.