2009 Air Quality Loan Program Request for Proposals

1. Question: What is CalCAP and how do I obtain more information on that program?

Answer: The California Capital Access Program (CalCAP) is a loan guarantee program that is operated by the California Pollution Control Financing Authority (CPCFA) under the State Treasurer’s Office.  CalCAP offers lenders a mechanism to provide loans to small businesses that may not otherwise be able to get a loan.  CalCAP aims to encourage banks and other financial institutions to make loans to small businesses that fall just outside of most banks' conventional underwriting standards.  CalCAP accomplishes that goal by insuring bank loans made to small businesses.

The Air Resources Board (ARB) is developing innovative financing programs to provide fleet owners, particularly small business owners, easier access to loan opportunities.  These ARB financing programs are collectively named “Providing Loan Assistance for California Equipment (PLACE) Program”.  The ARB's PLACE program offers several options to increase financing accessibility, including loans, loan guarantees, and other mechanisms to assist industries affected by ARB regulations.

View more information on CPCFA’s CalCAP loan guarantee program.

View more information on ARB’s PLACE program.

2. Question: What is the reason for the Request for Proposals’ (RFPs’) statement that the ARB is seeking financing models that are different than a loan guarantee model?

Answer: Loan guarantee has proven to be a successful financing model that has been used by CPCFA through CalCAP to assist small businesses.  As such, ARB is partnering with CPCFA to implement a CalCAP-type loan guarantee program that focuses on the specific needs of heavy-duty vehicle small fleet owners to assist them in complying with two adopted regulations for heavy-duty vehicles.  The loan guarantee program already has a proven track record of success and since the ARB is implementing that financing model with CPCFA, we are seeking other innovative financing models to supplement the existing loan guarantee program.  Successful implementation of an alternative air quality loan financing model will expand both the available loan financing mechanisms and the pool of potential eligible borrowers that could be assisted with State funds.

3. Question: Would loan funds be available to assist a marginally profitable business that has a small fleet of street sweepers, which are unable to be retrofitted with a DPF for compliance with fleet rules?

Answer: If the fleet is subject to the requirements of either the In-use Truck and Bus regulation or the Heavy-duty Vehicle Greenhouse Gas Emission Reduction regulation, and if the fleet has 20 or fewer vehicles that operates the majority of the time in California, then it is eligible to apply for financing assistance.  However, depending on the actual mechanisms of the program that will be implemented from the proposals that were submitted in response to this RFP, the fleet may or may not be approved for financing.  This is because, at this point, we do not have any information on the structure of a financing program that will ultimately be implemented since the deadline (April 29th, 2009) for proposal submittal has not yet arrived.

4. Question: How are administrative costs for administering and implementing the loan program be compensated?

Answer: The ARB recognizes that there will be costs associated with administering and implementing an approved heavy-duty vehicle financing program.  However, the RFP does not provide any specificity on cost limits or other restrictions on administrative cost structures, including compensations for such costs.  This is because this criterion is one of the requirements of the RFP that an applicant is expected to provide and it will be evaluated against competing proposals.  Specifically, the RFP states, on page 8, that the applicant must submit “program administration and cost structure, including detailed description of how the applicant will be compensated for administering and implementing the proposed loan program.”  Although the RFP does not prescribe any administrative cost structure, the applicant is advised that that this element will be scored on its merits and considered in relation with another key objective of the loan program, which is to create and foster an efficient heavy-duty vehicle financing program with sustained long-term benefits.