The 13-year-old program run by the California Pollution Control Financing Authority (CPCFA) with funding from the California Air Resources Board (CARB) just surpassed a milestone of financing to help get more than 36,000 lowemission trucks on the road, according to State Treasurer Fiona Ma.
The Heavy-Duty Vehicle Air Quality Loan Program was established in 2009 to provide financial assistance to small business owners who have heavy-duty vehicles affected by the CARB ‘s Truck and Bus Regulation and other air pollution control mandates.
The collaboration between CARB and the CPCFA’s has been successful in financing the purchase of lower-emission vehicles. The program, funded primarily by the CARB ‘s Air Quality Improvement Program, gets its money from the quarterly Air Board’s Cap-and-Trade Auctions and was recently extended two additional years.
Since this partnership began in 2009, CARB has contributed $187 million toward loans that helped purchase more than 36,000 cleaner trucks. That is the equivalent of removing almost 11 million passenger cars from the road and 164 tons of particulate matter per year, according to Ma’s office.
“This is a major milestone that might have seemed nearly impossible in 2009,” Treasurer Ma said. “There is more work to be done in terms of taking polluting vehicles off the road and replacing them with cleaner vehicles, but this accomplishment shows what is possible when we have state agencies and private lenders working together on critical state goals.”
CARB provides funding from its Air Quality Improvement Program to the CPCFA, which invests the contributions in a loan loss reserve program operated by the California Capital Access Program. The funds provide support for and incentive to lenders to offer owner-operators truck loans with favorable terms and interest rates. Diesel, compressed gas, hybrid, and electric trucks qualify, as do warranty packages for vehicles financed through the program. Reaching this goal and having more time to administer the program will produce even more clean vehicles on the road throughout the state.
“The program just had the largest year ever in terms of loan volume and that’s because we have an incredible network of lending partners who understand the value of offering this financing option to their customers to help get cleaner vehicles on the road,” said Shela Tobias-Daniel Tobias-Daniel, CPCFAexecutive director. The program added five new lenders in the past year to improve access to funding.
If you are looking for low-cost new truck loans in what is becoming a much higher interest rate market check this out. For more information on the program, including small business financing opportunities, visit://treasurer.ca.gov/cpcfa/calcap/
By Garrett Francis, ECA President Email: [email protected]