0974 Pollution Control Financing Authority
Program Descriptions

10 - 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. CPCFA financing assists municipalities in complying with waste diversion mandates of the California Integrated Waste Management Act of 1989. As of June 30, 2012, bonds totaling $13.1 billion have been issued by the CPCFA.

20 - CALIFORNIA CAPITAL ACCESS PROGRAM 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 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. 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, especially in high unemployment areas.

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. CalCAP and the Business, Transportation, and Housing Agency (succeeded by the Governor's Office of Business and Economic Development) equally share this allocation and will have available $84.3 million each. It is expected that these new funds will lead to a rapid and significant expansion of the CalCAP program. Additional incentives are provided to lend to businesses located in specified economically depressed areas including Enterprise Zones. CalCAP has partnered with the Air Resources Board to assist diesel truck and equipment owners in meeting new clean air requirements. CalCAP has partnered with the Department of Resources, Recycling, and Recovery to assist recycling related businesses.

30 - CALIFORNIA RECYCLE UNDERUTILIZED SITES PROGRAM

This 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.

40 - SUSTAINABLE COMMUNITIES GRANT AND LOAN PROGRAM

The objective of this program is to assist cities and counties to develop and implement sustainable development growth policies, programs, and projects. Sustainable Communities Grant and Loan Program has funded specific plans, portions of specific plans, alternative transportation studies, finance plans, redevelopment plans, engineering studies, public projects, and other projects that promote sustainable development principles. The statute authorizing this program expired on January 1, 2012.