- Incentive Website
- Incentive Status: Active
- Application Due Date: Ongoing
The California Pollution Control Financing Authority acts as a conduit issuer of tax-exempt private activity bonds. This allows CPCFA to facilitate low cost financing to qualified waste and recycling projects. Other projects to control pollution and improve water supply may also qualify for tax-exempt financing as allowed by federal tax law. The acquired securities pay for acquisition, construction or installation of qualified pollution control, water furnishing, waste disposal, waste recovery facilities and equipment. Examples of recent assistance include projects to purchase clean-air vehicles by waste companies, construct and operate anaerobic digesters, recycle used oil, convert animal waste to clean burning fuel, and develop construction and demolition debris recycling programs. Tax-exempt allocation is provided by the California Debt Limit Allocation Committee (CDLAC).
Tax exempt bond financing assists qualified borrowers to get lower interest rates than what is available through conventional loans.
Prospective borrowers should contact bond counsel to help determine if a proposed project qualifies under federal law. Bond counsel must be listed on the State Treasurer's Office list of approved firms. Once eligibility is determined, contact CPCFA Bond Program staff to begin the application process.
Do I Qualify?
Types of projects, which may qualify for tax-exempt bond financing, include:
- Curbside collection facilities
- Recycling facilities
- Composting facilities
- Materials recovery facilities
- Transfer station
- Waste-to-energy facilities
- Qualified solid waste or hazardous waste disposal projects
- Waste recovery facilities
- Purchase of collection vehicles and residential waste containers
- Water Furnishing Facilities
- Wastewater Treatment Facilities
How to Apply
- Potential Borrowers submit an application for Initial Resolution (IR) which is reviewed for tax-exempt bond financing eligibility. CPCFA works directly with the applicants in this process and throughout the entire process if the project is eligible.
- Qualified projects will be submitted to the CPCFA board members for approval of an Initial Resolution (IR). The IR is a preliminary action that, if bonds are issued, allows a borrower to be reimbursed for eligible project expenditures incurred 60 days before resolution and for the period after resolution up to the issuance date. It is not a commitment by CPCFA that bonds will be issued.
- A Final Resolution (FR) authorizes a bond sale for a project within a certain period (usually 180 days). An FR is approved by CPCFA only after a detailed examination of final project plans (technical and financial) and the applicant has obtained any and all appropriate certificates from affected environmental agencies and submitted all such certificates to the Authority (if appropriate, a statement must be submitted stating why any approval or certificate has not been obtained or is unnecessary).
- After FR approval, potential borrowers via CPCFA, request "allocation" from the California Debt Limit Allocation Committee. The allocation is required by federal tax law before private activity tax-exempt bonds can be issued. CDLAC allocation is valid for 90 days.
- Once projects receive allocation the Office of the State Treasurer schedules the bonds for sale. CPCFA utilizes a Bond Trustee to distribute the bond proceeds to the borrower and, on behalf of bondholders, to collect and disburse bond payments.
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