In June 2020, California passed AB78 to establish the Climate Catalyst Revolving Loan Fund to provide low-cost, low-interest finance to support eligible low carbon technology and infrastructure projects and attract private capital. The bill tasks the California Infrastructure and Economic Development Bank (IBank) with administering the Climate Catalyst Fund. The bill defines “climate catalyst projects” as any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within California that are consistent with, and intended to, further California’s climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure.
While California has made large investments with cap-and-trade dollars into other projects, this fund is projected to fill a different role: offering new money to smaller enterprises whose projects are not yet far enough along for larger investors to feel comfortable stepping in.