SALT Report 1798 – The State of California Office of Administrative Law recently approved emergency regulatory action that allows the California Alternative Energy and Advanced Transportation Financing Authority to implement a loan loss reserve program as mandated in AB 14. The emergency regulations will establish the rules and procedures for the Clean Energy Upgrade Financing Program.
The Program will provide credit enhancements for financial institutions that make loans to businesses for energy upgrades. Through the use of credit enhancements the program will reduce the overall costs to the property owners making these improvements. More specifically, the Program has three goals:
- To provide financing at better rates than a borrower would be able to receive without the existence of credit enhancements,
- To promote the creation of California-based green jobs, and
- To reduce greenhouse gases, air and water pollution, and energy consumption
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