Exempt Facilities / Solid Waste
CSCDA issues Bonds for companies to finance the acquisition and rehabilitation, construction of, or acquisition of new equipment for solid waste, airports and other exempt facilities. As the interest on the Bonds is exempt from federal income taxes, a borrower can finance a project at a lower interest rate than available through conventional financing. Since inception, CSCDA has issued in excess of $1.1 billion for solid waste facilities projects.
CSCDA can privately place projects ranging in size from $1 million to $5 million through the Small Issue Public Benefit Program or work with a borrower and their finance team as conduit issuer on publicly offered Bonds.
CSCDA requires each project to demonstrate a clear public benefit to the community in which the project is located. Additionally, each borrower is required to file an application, via CSCDA, with the State of California to reserve the right to issue tax-exempt bonds. The state application evaluation criteria are based on various public benefit categories such as job creation, participation in a Welfare to Work Plan, payment of employee medical, dental, and vision costs, comparison of the average hourly wage, and use of energy efficient facility designs and materials.
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