The California Pollution Control Finance Authority (CPCFA), chaired by Lockyer, approved an agreement with the ARB that will govern the new diesel emissions program. The agreement calls for the diesel loan initiative to be operated as part of CPCFA's existing small business loan guarantee program, the California Capital Access Program (CalCAP).
Under CPCFA's partnership with ARB on the diesel initiative, the ARB will contribute a percentage of the loan principal - about 14 percent - for each qualified loan into lending institutions' loan loss reserve accounts. The agreement caps the ARB's total CalCAP contribution at $48 million. The $48 million could leverage roughly $350 million in loans to truckers and small trucking fleets. The loan proceeds can be used to purchase new trucks, used trucks, smartway products and exhaust retrofits. Pursuant to CalCAP regulations, the maximum loan amount will be $1.5 million, and the recipient businesses must have fewer than 100 employees and less than $10 million in annual revenues.
The CPCFA and CARB anticipate launching the program later this spring.
The two agencies also provide a loan guarantee program through CalCAP to owners of off-road diesel vehicles for assistance with exhaust retrofits necessary to comply with recently adopted off-road diesel vehicle regulations. These vehicles are commonly used in construction, mining, and other industrial operations.
For more information about CPCFA and the loan gaurantee programs, visit www.treasurer.ca.gov/cpcfa.