CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY
RCRC March 21, 2013
Michael Paparian
Executive Director, CPCFA
CPCFA
Treasurer Bill Lockyer, Chair
Controller John Chiang
Director of Finance
Ana Matosantos
CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY (CPCFA)
Established in 1973 through legislation signed by then
Governor Ronald Reagan
$14 billion in bonds issued; including Over $800 million in
bonds issued in 2012
Currently controls $2.9 billion in private activity bond
allocation for waste, recycling, water and wastewater
projects
Bond fees have been used to set up small business support
and brownfields programs
CPCFA has assisted projects in all but 3 RCRC counties
(Alpine, Mono, Plumas)
CPCFA FINANCING PROGRAMS
Bond Financing
Tax-exempt bonds
for qualifying waste,
recycling, water and
pollution control
facilities
Taxable bonds for
waste, recycling,
water and pollution
control
Energy Efficiency
Loan Participation
Program
$50 million Loan
Pool for Initial
Financing for PACE
and PACE-Like
Structures
Intended to assist in
“proving the
marketplace” for
PACE-like structures
California Capital
Access Program
(CalCAP)
Small business loan
assistance through
loss reserves and
collateral support
Special Assistance
for diesel trucks and
recyclers
California Recycle
Underutilized
Sites (CALReUSE)
Grants and loans to
clean up
contaminated lands
Loans for site
assessments
TAX-EXEMPT BONDS
Types of
projects that
may qualify
for taxexempt bond
financing:
• Privately owned water/wastewater treatment
facilities
• Solid waste disposal or recycling facilities
• Waste conversion facilities such as anaerobic
digesters
• Certain types of biomass conversion facilities
CPCFA FINANCING EXAMPLES - BONDS
CPCFA issues bonds to
assist anaerobic
digestion projects.
• Financed projects have included digesters at dairies and sewage
treatment facilities and a food waste digester in San Jose.
Additional Possibilities
• Additional possibilities for CPCFA bond include desalination, private
water or wastewater projects, industrial development bonds for
recycling industries, pre-pay bonds for utility scale alternative
energy generation, bio-diesel facilities, landfill gas, alternative fuels
using waste products such as wood waste, alternative energy at
qualified facilities.
CPCFA bond-financed
projects often include
substantial energy
components.
• Examples include a solar array at a recycling facility, LEED certified
buildings at qualified facilities, and alternative energy/cogeneration
at water clean-up projects.
BONDS: SMALL BUSINESS SUPPORT
CPCFA has a $16 million small business
assistance fund which can be tapped to
assist with the costs of issuance for
bonds for qualified companies.
Qualified businesses with under 500
employees can receive up to $205,000
towards the cost of issuance
CPCFA SMALL BUSINESS PROGRAMS
Existing Capital Access Program (CalCAP) reduces the risk of loans by
providing funds for loan loss reserves for banks, credit unions and CDFIs.
State Small Business Credit Initiative is administered by U.S. Treasury.
$168 million to California; $84 million to CPCFA
New Collateral Support Program assists lenders in making loans to
collateral-short businesses
New Loan Participation Program helps boost market for energy efficiency,
distributed generation and environmental improvement loans
CALIFORNIA CAPITAL ACCESS PROGRAM
Over $2 billion in loans supported since 1994
Partnerships with Air Resources Board for clean diesel truck
support and CalRecycle to assist recycling businesses
Loans supported in 25 RCRC member counties in recent
years
Most active lenders are community/regional banks, credit
unions and Community Development Financial Institutions
COLLATERAL SUPPORT PROGRAM
Benefits almost any small business; emphasis on 504 Bridge
Loans, energy improvements and alternative energy/energy
conservation related businesses.
CPCFA will provide lenders up to 50% of loan value as cash
collateral for loans.
Minimum support will be $100,000 and maximum will be $5
million.
Loan size up to $20 million, business size up to 750
employees
ENERGY EFFICIENCY LOAN PARTICIPATION
CPCFA has launched a new program to assist in creating an
initial lending pool for financing commercial energy
efficiency projects.
CPCFA will put up $10 million in the expectation that a
lender will put up $40 million or more to create a $50 million
loan pool
Lenders can use this program to cover loan losses in initial
financing period and mitigate interest rate risk.
SSBCI funds to be paid back at bond take-out
CONTACTS
Michael Paparian
Executive Director
California Pollution Control Financing Authority
(916)654-5610
mpaparian@treasurer.ca.gov
www.treasurer.ca.gov/cpcfa
Doreen Smith
Bond Program Manager
California Pollution Control Financing Authority
(916)654-5610
Doreen.smith@treasurer.ca.gov
www.treasurer.ca.gov/cpcfa