Two Year Extended Low Emission HGV Joint Financing Program
State Treasurer Fiona Ma announced that the historic program between the California Pollution Control Financing Authority (CPCFA) and the California Air Resources Board (CARB) has now been extended for two years. The expansion of the funding partnership for the Heavy Vehicle Air Quality Loan Program has been approved by the CPCFA Board of Directors, chaired by Treasurer Ma, and will continue until June 30, 2023.
The Heavy Vehicle Air Quality Loan Program was established in 2009 to provide financial assistance to small business owners who have heavy vehicles affected by CARB’s Truck and Bus Regulations and others. air pollution control mandates. The collaboration between CARB and CPCFA’s California Capital Access Loan Program (CalCAP) has funded the purchase of more than 33,000 low-emission vehicles. The program is funded primarily by CARB’s Air Quality Improvement Program (AQIP).
Since the start of this partnership with CARB in 2009, CARB has contributed $ 164 million to more than 32,000 loans. This is equivalent to taking 9 million passenger cars and 148 tonnes of particulate matter off the road per year.
“This is a great example of how an innovative public / private partnership is playing a vital role in helping small business owners help the state tackle climate change,” said Treasurer Ma. removed polluting vehicles from the road and replaced them with an ever-increasing number of cleaner vehicles, a change that reduces air pollution, sustains our economy and brings our state closer to ambitious air quality goals that benefit everyone. ”
CARB provides funding from its AQIP to CPCFA, which invests the contributions in a loan loss reserve loan program managed by CalCAP. The funds support the lenders, incentivizing these lenders to offer owner-operator truck loans with better terms and interest rates than those owner-operators would otherwise receive. Diesel, gas, hybrid and electric trucks are eligible, as are warranty packages for vehicles funded under the program.
“This partnership program is making a difference by helping thousands of small businesses switch to cleaner trucks, which directly translates into fewer toxic diesel emissions,” said Richard Corey, CEO of CARB. “This means less pollution and cleaner air statewide, including in communities hardest hit by truck traffic, such as those near highways or near ports, train stations and centers. of distribution.”
“Our partnership with CARB ensures that small businesses and fleet owners have the opportunity to find more affordable financing that might not otherwise be available for these types of purchases,” said the Acting Executive Director of CPCFA, Derek Chernow. “We have new lenders signing up and new loans are being processed, so the extension provides important continuity as we continue to move forward. “
The program is on track to have the largest year on record in terms of lending volume. For more information on CalCAP, including funding opportunities for small businesses, visit the program’s web page at: www.treasurer.ca.gov/cpcfa/calcap/, and see the tools, available for truck loan borrowers seeking assistance in the heavy vehicle sector. Vehicle Air Quality Loan Program.
Since 1972, CPCFA has provided innovative, low-cost financing to California businesses with the goal of making California more economically prosperous and more environmentally friendly. As a government agency that issues tax-exempt and taxable private activity bonds and notes, CPCFA helps qualified borrowers obtain lower interest rates than available through conventional loans for projects. qualified waste and recycling and other projects related to pollution control and improvement of water quality and supply. In addition, CPCFA’s CalCAP programs encourage financial institutions to provide small businesses with access to capital and to offer specialized programs aimed at making trucks cleaner on the road and increasing the availability of electric vehicle charging stations in the city. statewide.
The above article was published by the California State Treasurer’s Office.