FAQ

CPCFA is a state entity housed in the California State Treasurer’s Office, which administers multiple programs encouraging capital investment in projects advancing California’s environmental, economic, and climate policy goals.

Established in 1972 as the California Pollution Control Financing Authority, CPCFA began operating March 7, 1973. The original name referenced the tax-exempt bond financing issued for industrial projects reducing air and water pollution.

Effective January 1, 2026, the name changed to Capital Programs & Climate Financing Authority.

CPCFA provides eligible applicants with access to the tax-exempt bond market for the issuance of private activity bonds or notes. Under federal tax code, certain types of privately-owned projects are considered to provide a public benefit and are eligible to issue bonds or notes with tax-exemption like that of municipal bonds (munis). Each state has a designated dollar value of tax-exemption each year; in California the California Debt Limit Allocation Committee (CDLAC) organizes and assigns the allocation of tax-exemption.

Federal tax code also requires that the tax-exempt bonds or notes be issued by a public entity. The California Health and Safety Code designates CPCFA as the state-level issuer of such bonds or notes in specific categories. CPCFA works with an applicant’s financing team and applies to CDLAC for allocation for each issuance.

CPCFA’s qualifying project categories are solid waste handling, disposal, recycling, or conversion; water furnishing; wastewater treatment and processing; and carbon dioxide capture. CPCFA can also issue industrial development bonds (IDBs) for projects which qualify as an IDB and overlap with a CPCFA category.

California small and large businesses, non-profits, and public-private partnerships (P3s) with qualifying projects may issue bonds or notes through CPCFA.

Potentially eligible uses include:

• Buildings and equipment

• Machinery and furnishings

• Land

• Costs of architects, engineers, attorneys and permits

• Costs of bond issuance.

Limits on uses of proceeds are included in the CPCFA Tax-Exempt Bond Program manual.

The tax-exempt market can provide lower interest rates (i.e. lower borrowing cost). The interest paid to the bondholders of the California tax-exempt bonds or notes is not included in their gross income for both Federal and California state income tax purposes. Therefore, potential bondholders can be willing to accept lower interest rates than they would if the interest were taxable.

The tax-exempt market can also provide engagement with investors for projects which are not a fit for commercial lending.

The SBAF is used to subsidize a portion of the costs of issuance for small businesses (as defined) which issue through the CPCFA Tax-Exempt Bond Program. The SBAF is funded by a fee collected from large businesses (as defined) which issue through CPCFA; however at present time and until December 31, 2026, collection of the SBAF fee is waived for large business borrowers.

More information about the Tax-Exempt Bond Program Small Business Assistance Fund is included in the CPCFA Tax-Exempt Bond Program manual.

The CPCFA Tax-Exempt Bond Program primary website includes information on the bond or note issuance process.

The CPCFA Tax-Exempt Bond Program manual contains issuance guidelines including requirements for purchasers of bonds and notes.

An investor wishing to purchase a CPCFA issuance available as a public offering shall contact the underwriter for the issuance.

Underwriters are part of the financing team listed on the staff reports for the Initial Resolution and the Final Resolution for each proposed issuance. Staff reports for Initial Resolutions and Final Resolutions are included on the Board Meeting webpage of the CPCFA primary website. Contact information for the underwriter for a specific proposed issuance can be requested from CPCFAbond@treasurer.ca.gov.

Planned bond sales may be posted on the Bond Sales section of this website.

CPCFA operates under statutory authority and is overseen by the CPCFA Board.

The CPCFA Board is chaired by the State Treasurer and also includes the State Controller and the Director of the Department of Finance.

The primary CPCFA website includes annual reports, audits and financial transaction reports.

The CPCFA Board typically meets monthly unless there are no agenda items requiring consideration or approval by the Board that month.

CPCFA Board meeting dates, agenda, staff reports, and resolutions are available on the Board meeting page of the primary CPCFA website.

In addition, one may sign up to receive email notifications of the posting of Board meeting notices.

CPCFA posts TEFRA notices on the Board meeting page of the primary CPCA website.