Clean Energy Upgrade Financing Program - Assembly Bill (AB) X1 14
On August 2, 2011, Assembly Bill 14 of the First Extraordinary Session (Skinner) (“ABX1 14”) was signed into law. ABX1 14 authorized the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to administer a Clean Energy Upgrade Financing Program (the “Program”) using up to $25 million to facilitate the financing of energy retrofits on California properties.
The full text of ABX1 14 can be found on the California Legislative Counsel’s website.
Under this loan loss reserve program, CAEATFA provided financial assistance in the form of a loan loss reserve to financial institutions making loans to finance the installation of energy efficiency improvements or distributed generation renewable energy sources on residential properties. Through participation in the Program, financial institutions receivde an initial 15 percent reserve contribution for each qualified loan enrolled. CAEATFA may provide up to 100 percent coverage on qualified loan defaults. The goal of the Program was to increase access to green retrofit financing by reducing its cost, and to increase the number of green jobs in the state.
CAEATFA’s statutory authority to enroll new loans in the Program expired on January 1, 2015; however, the Program will continue to provide loss reserve coverage to those loans enrolled prior to the expiration. In total, Participating Financial Institutions enrolled 386 loans in the Program, leveraging less than $600,000 in loss reserve funds to provide nearly $6 million in private capital for residential energy efficiency projects. On average, borrowers of enrolled loans saved approximately $4,700 over the life of their loans through reduced interest rates, and over four thousand kilowatt-hours per year based on contractor estimates. To date, there have been no charge-offs or related loss reserve claims for the loans enrolled in the Program.
Additional Information for the ABX1 14 Program
Documents for Participating Financial Institutions
If you have any questions about the ABX1 14 Program, please contact: