0974 Pollution Control Financing Authority
0860 - POLLUTION CONTROL TAX-EXEMPT BOND PROGRAM
The objective of this program is to provide bond financing to California businesses, irrespective of company size, for the acquisition, construction, or installation of qualified pollution control, waste disposal, water furnishing, wastewater treatment, waste recovery facilities, and the acquisition and installation of new equipment. Tax-exempt financing issued by CPCFA assists municipalities in complying with waste diversion mandates of the California Integrated Waste Management Act of 1989. As of June 30, 2014, bonds totaling approximately $14.3 billion have been issued by CPCFA.
0865 - CALIFORNIA CAPITAL ACCESS PROGRAM (CalCAP) FOR SMALL BUSINESSES
The objective of this program is to encourage banks and other financial institutions to make loans to small businesses. CalCAP for Small Businesses is a form of loan portfolio insurance that may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven financing mechanism to meet the financing needs of California's small businesses. The strength of CalCAP rests in its simplicity and its leverage of federal and state funds. The program works through the creation of a loan loss-reserve fund for each participating financial institution. The CPCFA funds this reserve together with the financial institution and the borrower. Additional incentives are provided to lend to businesses located in specified economically depressed areas including Enterprise Zones. The reserve serves to reduce loan-loss risk, allowing banks to lend to targeted California small businesses. Chapter 731, Statutes of 2010, appropriated $6 million General Fund to CalCAP to increase lending efforts. As of June 30, 2014, approximately $1.5 million of the $6 million has been used to assist small businesses.
In addition, California was awarded an allocation of federal funds in the amount of $168.6 million from the federal State Small Business Credit Initiative (SSBCI). CPCFA and the Governor's Office of Business and Economic Development (Go-BIZ) equally share this allocation and have available $84.3 million each. These funds have enabled CPCFA to significantly expand the availability of its CalCAP program statewide. In addition, in the first quarter of 2013 CPCFA launched the Collateral Support Program to assist more small businesses and utilize the SSBCI Federal funds. The funds are allocated to California in three installments based on program progress, with CPCFA receiving approximately $27 million in March 2011, and another $27 million in December 2013. A memorandum of understanding between CPCFA and Go-BIZ transferred an additional $10 million from Go-BIZ to CPCFA in the third quarter of 2014 to support CPCFA's high-demand programs. It is anticipated that the final installment of federal funds will be requested in the fourth quarter of 2014.
Utilizing the CalCAP model, CPCFA has partnered with the Air Resources Board (ARB) to assist diesel truck and equipment owners in meeting new clean air requirements, and with the Department of Resources, Recycling, and Recovery to assist recycling related businesses.
0870 - CALIFORNIA RECYCLE UNDERUTILIZED SITES (CALReUSE) PROGRAM
The CALReUSE program assists with the reuse and redevelopment of underutilized properties with real or perceived contamination issues (brownfields). CALReUSE addresses a funding and information gap in the development of brownfields to help bring these properties into productive reuse. The CALReUSE Assessment Program provides forgivable loans of up to $300,000 per brownfield site, or $500,000 for sites that will ultimately result in housing. The funds assist with brownfield site assessment and characterization, technical assistance, remedial action plans and site access. Eligible projects include sites with potential beneficial reuse not currently redeveloped due to lack of information about real or perceived contamination, uncertainty about clean-up costs, or concerns regarding time frames and the regulatory process. Priority is given to projects located in distressed neighborhoods with demonstrated community support. Additionally, Proposition 1C, the Housing and Emergency Shelter Trust Fund Act of 2006, included provisions to fund brownfield cleanup that resulted in the expansion of CALReUSE. The CALReUSE Remediation Program received $60 million in Proposition 1C funds and provides up to $5 million per project in loans and grants for the purpose of brownfield cleanup that promotes infill residential and mixed-used development, consistent with regional and local land use plans.
0875 - ALTERNATIVE FINANCING PROGRAMS
Under its authority to provide alternative methods of financing facilities for pollution control, clean water supply and alternative energy production, CPCFA is developing alternative financing models to assist sister agencies with achieving the state's environmental goals. CPCFA is authorized to receive and accept contributions from other sources including federal and state agencies to carry out the purposes of its statutory authority.