California Pollution Control Financing Authority.

Assembly Member Jackson's legislation modifies California's financial assistance programs for utilities and small businesses by restructuring oversight responsibilities and expanding funding mechanisms. The bill removes certain regulatory duties from the California Pollution Control Financing Authority regarding utility project financing while establishing new parameters for rate reduction bonds and utility project charges.

The legislation creates a framework for local agencies with publicly owned utilities to access rate reduction bond financing through specified authorities. Agencies must demonstrate that using rate reduction bonds will result in lower utility rates compared to traditional financing methods. The bill institutes irrevocable financing resolutions detailing utility project charges and requires local agencies to enter servicing agreements for charge collection, with funds held in trust for bond repayment.

For small business assistance programs, the bill directs all program-related monies to be deposited into the California Capital Access Fund and permits the fund to accept additional private, state, and federal funding sources. It expands eligible expenditures under both the Americans with Disabilities Act and Seismic Safety Capital Access Loan Programs to include various forms of financial assistance, from direct loans to credit enhancements. The legislation maintains existing administrative cost limits of 5 percent of initial appropriations plus 5 percent of recaptured funds.

The bill preserves program integrity through certification requirements for participating lenders and borrowers while providing mechanisms for fund management and investment. Local agencies must continue collecting utility project charges even when customers switch providers, ensuring consistent revenue streams for bond repayment. A statutory lien on utility project property provides additional security for rate reduction bonds.