CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY

RCRC March 21, 2013

Michael PaparianExecutive 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

• 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

Types of projects that may

qualify for tax-exempt

bond financing:

CPCFA FINANCING EXAMPLES - BONDS

• Financed projects have included digesters at dairies and sewage treatment facilities and a food waste digester in San Jose.

CPCFA issues bonds to assist

anaerobic digestion projects.

• Examples include a solar array at a recycling facility, LEED certified buildings at qualified facilities, and alternative energy/cogeneration at water clean-up projects.

CPCFA bond-financed projects

often include substantial energy

components.

• 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.

Additional Possibilities

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 PROGRAMBenefits 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 PaparianExecutive DirectorCalifornia Pollution Control Financing Authority(916)654-5610mpaparian@treasurer.ca.govwww.treasurer.ca.gov/cpcfa

Doreen SmithBond Program ManagerCalifornia Pollution Control Financing Authority(916)654-5610Doreen.smith@treasurer.ca.govwww.treasurer.ca.gov/cpcfa