A.B.964

Summary

Existing law establishes the Capital Access Loan Program to assist qualified small businesses in financing the costs of complying with environmental mandates and the remediation of contamination on their properties, which is administered by the California Pollution Control Financing Authority. Under the program, the authority may enter into contracts with participating financial institutions and is required to establish a loss reserve account with participating financial institutions. Under existing law, a participating financial institution that experiences a default on a qualified loan enrolled in the Capital Access Loan Program may obtain reimbursement from the authority by submitting a claim for reimbursement for a specified amount of the loss covered by that loan, subject to certain procedures. Existing law establishes within the program the California Americans with Disabilities Act Small Business Capital Access Loan Program to assist small businesses in financing the costs of projects that alter or retrofit existing small business facilities to comply with the federal Americans with Disabilities Act. Existing law also establishes within the Capital Access Loan Program the California Seismic Safety Capital Access Loan Program to assist residential property owners and small business owners in seismically retrofitting residences and small businesses by covering losses on qualified loans for those purposes. This bill, until January 1, 2027, would create the California Affordable Clean Vehicle Program to assist low-income individuals in the purchase or lease of zero emission or plug-in vehicles for personal or commercial use, and other eligible projects. The bill would require the authority to administer the program in consultation with the State Air Resources Board and consistent with the requirements of the Capital Access Loan Program and other related programs related to financing of clean energy vehicles. The bill would authorize the authority, to the extent funds are available, to offer financing mechanisms to low-income individuals under the program, including establishing a loss reserve account, providing funds to financial institutions to reduce the interest rates charged on qualified loans, and any other mechanism that the authority establishes to increase participation rates of low-income individuals in qualified loans. The bill would require the program to comply with goals and objectives relating to environmental and consumer protection. The bill would establish the California Affordable Clean Vehicle Program Fund, and would authorize the authority to utilize the funds, upon appropriation by the Legislature, for purposes of the program. The bill would require the authority to adopt regulations to implement the provisions of this bill.