The Climate Catalyst Revolving Loan Fund is designed to “Unleash critical climate solutions through flexible, low-cost credit and credit support”.
California has many formal acts in law. Title 6.7, Division 1, Chapter 2, Section 6.7 of the Governmental Code provides the Climate Catalyst Revolving Fund Act of 2020, which is found in sections 63048.91 through 63048.100. Section 6.7 was added in 2020 by Chapter 10. Section 63048.91 names the law.
Furthermore, this article does not apply to the other activities, powers and duties of the Bank of California for Infrastructure and Economic Development (I Bank) under this division. The bank is required to administer the Climate Catalyst Revolving Loan Fund to provide financial assistance to climate catalyst projects, which is provided at interest rates and at low cost determined by the bank, to directly support the projects and to attract additional third parties. -party capital.
Section 63048.92 provides definitions for the following terms: “bank”; “climate catalyst project”; “climate catalyst revolving loan fund”; “Climate Catalyst Revolving Fund Program”; “climate catalyst financing plan”; “advisory agencies”; “disadvantaged”; “sponsor”; and “participating party”.
Section 63048.93 authorizes the bank to provide financial assistance under the Climate Catalyst Revolving Fund Program to any eligible sponsor or participating party, either directly or to a lending or financial institution, in connection with the financing or refinancing of a climate catalyst project, pursuant to an agreement or agreements between Bank I and the sponsor or participating party, including but not limited to the tribes, either as sole lender or as joint lender or in syndication with other lenders.
Beginning in FY 2021-2022, Bank I is required to meet and liaise with advisory agencies regarding the specific categories of climate catalyst projects corresponding to each agency. Subsequently, the I Bank board must adopt, by majority vote of the bank’s board, a climate catalyst financing plan.
A Climate Catalyst Funding Plan remains in effect until superseded by a revised Climate Catalyst Funding Plan. The advisory agencies and corresponding areas of climate catalyst projects on which they will provide advice are specified. This includes:
- The Natural Resources Agency for climate catalyst projects related to sustainable vegetation management, forestry practices and timber harvesting products.
- The Ministry of Food and Agriculture for climate catalyst projects related to agricultural improvements that improve the climate or mitigate climate impacts resulting from prevailing agricultural practices.
Bank I may engage in outreach activities to inform disadvantaged Participating Parties and disadvantaged Sponsors of the categories of financial assistance potentially available under the Climate Catalyst Revolving Fund Program. Outreach efforts may include, but are not limited to, any specified activities.
Section 63048.94 provides that effective October 1, 2022 and no later than October 1 of each year, the bank is required to prepare and submit to the Governor, Speaker of the Assembly, President pro tempore of the Senate and to the Legislative Analyst Office a report containing the activity of the Climate Catalyst Revolving Loan Fund Program for the previous fiscal year ending June 30, together with the required information, as specified.
Section 63048.95 established in the Treasury the Climate Catalyst Revolving Loan Fund for the purpose of implementing the purposes and provisions of this section. The Climate Catalyst Revolving Loan Fund shall be separate from any other fund or account created under this Section.
Funds from the Climate Catalyst Revolving Loan Fund are permanently earmarked, regardless of fiscal year, to support the bank and are available for expenditure for the purposes set forth in this section.
Section 63048.96 authorizes the bank to pledge some or all of the funds of the Climate Catalyst Revolving Loan Fund as security for payment of principal and interest on any particular issue of bonds issued for the purposes of this section. The bank may use some or all of the funds in the Climate Catalyst Revolving Loan Fund to hold or purchase, for holding or sale, subordinated bonds issued by the bank, a special purpose trust or a sponsor. , all related to the objectives of this article.
Section 63048.97 authorizes the bank to administer and allocate among accounts and subaccounts created under this section, at its discretion, the proceeds of any general bond issued pursuant to the General Government Bonds Act. The assets of the Climate Catalyst Revolving Loan Fund must be available for the payment of salaries and other expenses incurred by the bank in connection with the administration of this article.
Section 63048.98 provides that all costs, liabilities, obligations and expenses incurred in carrying out the purposes of this section shall be payable only from funds provided for the purposes of this section, and no liability, cost, expense or obligation shall be imposed on the State or the bank beyond the extent to which the money was provided solely for the purposes of the activities of the bank authorized under this article.
Section 63048.99 provides that Climate Catalyst Revolving Loan Fund funds received from the proceeds of bonds issued under this section may not be transferred to any other fund, except as necessary to pay the operating expenses of the revolving fund program. Climate Catalyst revolving loans.
Section 63048.100 states that expenditures of the Climate Catalyst Revolving Loan Fund are not subject to the oversight or approval of any other officer or division of state government, except the legislature. However, the bank’s budget for the activities authorized in this article must be prepared and revised no later than November 1 of each year.