0971 Alt Energy, Advanced Trans Fin Auth
0850 - ALTERNATIVE ENERGY AND ADVANCED TRANSPORTATION FINANCING AUTHORITY
Financial assistance can take the form of loans, loan loss reserves, interest rate reductions, proceeds of bonds issued by the authority, bond insurance, loan guarantees or other credit enhancements or liquidity facilities, contributions of money, or a combination thereof, as determined and approved by the resolution of the board.
In 2010, CAEATFA launched a sales and use tax exclusion (STE) program for advanced transportation and alternative source manufacturing in California (SB 71, Chapter 10, Statutes of 2010). In 2012, CAEATFA's STE program was expanded to include advanced manufacturing (SB 1128, Chapter 677, Statutes of 2012), with an annual cap of $100 million available for STE awards. In 2015, AB 199, Chapter 768, Statutes of 2015, expanded the program to also include equipment primarily used to process recycled feedstock and equipment that primarily utilizes recycled feedstock in the production of another product. The objective of CAEATFA's sales and use tax exclusion program is to promote the creation of California-based manufacturing, businesses, and jobs that are aimed to reduce greenhouse gases, air and water pollution, and energy consumption.
In addition, legislation in 2010 (SB 77, Chapter 15, Statutes of 2010), 2011 (ABx1 14, Chapter 9, Statutes of 2011), and 2013 (SB 96, Chapter 356, Statutes of 2013) provided CAEATFA with additional statutory authority to provide financial assistance to encourage energy efficiency retrofits. Under ABx1 14, which sunset in January 2015, CAEATFA developed a loan loss reserve program to assist financial institutions in making loans to homeowners in the state for residential whole house energy efficiency and renewable energy projects. Under SB 96, CAEATFA developed a risk mitigation program for residential Property Assessed Clean Energy programs in California.
Additionally, CAEATFA received authorization in the Budget Act of 2014 to administer the California Hub for Energy Efficiency Financing on the behalf of, and in collaboration with, the California Public Utilities Commission. These energy efficiency financing pilots programs will employ various types of credit enhancements to encourage and leverage private capital lending (in both the residential and commercial sectors) for energy efficiency improvements needed to help achieve California's energy efficiency goals.