Bergeson-Peace Infrastructure and Economic Development Bank.

The Bergeson-Peace Infrastructure and Economic Development Bank Act (Bank Act) establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development, that is governed by a board of directors. The Bank Act, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities. This bill would create the Climate Catalyst Revolving Loan Fund Act of 2020. The bill would create the Climate Catalyst Revolving Loan Fund within the State Treasury, and make the moneys in the fund available for expenditure, upon appropriation by the Legislature. The bill would require the bank to administer the Climate Catalyst Revolving Loan Fund and would authorize the bank, under the Climate Catalyst Revolving Loan Fund Program, to provide financial assistance to any eligible sponsor or participating party for eligible climate catalyst projects, either directly to the sponsor or participating party or to a lending or financial institution, as specified. The bill would define "climate catalyst projects" as any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within California that are consistent with, and intended to, further California's climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure. This bill would provide how the bank is to administer the moneys in the fund, including, but not limited to, authorizing the bank to pledge any or all of the moneys in the fund as security for the payment on a particular issuance of bonds issued for the purposes of the article, authorizing the bank to use moneys in the fund to purchase subordinated bonds issued by the bank, requiring the bank to create separate accounts within the fund, requiring the bank to hold moneys in trust for the security and payment of revenue bonds, organizing the fund as a public enterprise fund, and requiring assets of the fund be available for payment of bank salaries and expenses incurred in the administration of the act. The bill would require the bank to provide financial assistance with low-interest rates and at low cost, as determined by the bank, to support eligible climate catalyst projects and attract 3rd-party capital. The bill would require that the repayments under the program be deposited in the appropriate account within the Climate Catalyst Revolving Loan Fund. This bill would also require the Strategic Growth Council, in consultations with the Labor and Workforce Development Agency, to advise the Legislature beginning in 2020 of potential categories of climate catalyst projects that would focus on the state's key climate mitigation and resilience priorities and inform the bank of the advice provided to the Legislature. The bill would require the bank to prepare and submit a report regarding Climate Catalyst Revolving Loan Fund Program activities for the preceding fiscal year to the Strategic Growth Council, the Governor, the Speaker of the Assembly, and the President pro Tempore of the Senate, as specified. The report would be required to be posted on the bank's internet website and presented to the Strategic Growth Council. This bill would require the bank's operating budget for the activities authorized by the act to be subject to review and appropriation in the annual Budget Act. The Bank Act limits the total amount of revenue bonds issued to finance public development facilities that may be outstanding at any one time under this authority to $5,000,000,000 and the total amount of rate reduction bonds that may be outstanding at any one time under this authority to $10,000,000,000. The Bank Act creates the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, into which all moneys accruing to the I-bank pursuant to the act are to be deposited. This bill would instead limit the total amount of rate reduction bonds and bonds issued to finance public development facilities that may be outstanding at any one time under that authority to $15,000,000,000. By authorizing the deposit of additional moneys into the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, the bill would make an appropriation. Existing law, the California Small Business Financial Development Corporation Law (Law) , provides for the creation of nonprofit small business financial development corporations, including requiring approval from the board of directors of the California Infrastructure and Economic Development Bank, as provided. Existing law, the Small Business Financial Assistance Act of 2013 (Assistance Act) , authorizes the I-Bank's board to, pursuant to the Law and the Assistance Act, continue programs funded by the Small Business Expansion Fund or establish one or more programs administered by the bank or under contract with small business financial development corporations. This bill would authorize the I-Bank board to establish one or more programs administered by the bank directly, in conjunction with financial companies or financial institutions, in direct or indirect participation with special purpose entities established for small business finance, or under contract with small business financial development corporations. The bill would also authorize the I-Bank to establish any and all programs pursuant to the Assistance Act and the Law that it determines are necessary or desirable to directly or indirectly assist small businesses obtain capital. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.