AgdaPkt 2009-06-22 clsd and jnt - Laserfiche WebLink

Browse Search

9A Page 6 (but not states or other governmen#a1 units}#o issue such bonds. Typically, the bonds wouid be issued by the city or county and proceeds loaned(or the project leased or sold)to a for-profit company as the true borrower and real party in interest. SmaEl Issue Industriaf aeveiopment Bonds(IDBs):ARRA provides for a significant expansian of the current ability of sta#e and Iocal govemments to issue smali issue fDBs in 2009 and 2410 to finance facilities beyond manufacturing vf tangible personal property. As under current law, projects are subject to a$10 mil[fon maximum issue size. Tax-Credit Bonds:There are several tax-credit bond provisions in ARRA,in addi�on to the tax credit type of"Build America Bonds"described in No. 1 {above)and in the"Recovery Zone Economic Development Bonds"descr�bed in No.2(above). These targe#the following sectors: 1.Recovery zones as described abo�e; 2."Green"energy;and 3.Public schoofs. � Unliice bonds tha#bear interes#tha#is exempt from income tax,tax-credit bonds pay the�oider a federal tax credit in lieu of interest.Wi#h tax-credit bands,the federal govemment is directly providing the subsidy to the bondholder rather than the issuer paying the bondholder interest. Of particular interest to cities are: • New Ctean Renewable Energy Bonds(CREBs): Up to$2.4 bill�o��$1.6 bi[iion more than available currently)may be issued by all types of s#ate and iocal government issuers, municipaf u#ilities,electric cooperafives and ce�ain cooperative Eenders.A broad range of renewable generation facili#ies are eligibte for financing.The project must be owned by a municipal utility,a state or local govemment, or a cooperative electric company�but may be ieased to or opera#ed by or its output sold to a private company. New CREBs provide bondholders with federaf tax credits e�ual#0 70 percent of the interest or�the bonds. The balance of any interes#is paid by#he issuer. • Quallfied Energy Consen►ation Bonds(QECBsy:ARRA provides autharity to issue an additionaf$2.4 billion(for a tota!of$3.2 biilion)of Qualified Energy Conservation Bonds (QECBs)originally authorized by legislation in 2008.All types of state and local governmen#s may issue these bonds to fund a broad array af"green"expenditures including; (1) implementing green commur�ity programs,(2)grants to support research in emerging energy technologies,(3)rail and bus facilities, (4)public educatlon programs, {5)renewable energy facilities, and(6)demonstration projects for emerging energy technologies. lnformation for fhe preceding section was obtained by League sfaff through consu/tafion witir Congressiona!sfaff, the Stafe Treasurer's o�ce, the Califomia lnfrastructure 8ank, and a publrcatiort by Orrfck Herrington&Sutcliffe LLP, entitled"The American Recovery and Reinvestment Acf of 2009: What It Nleans to You and Your Financing Opfions" 7he League thanks �rrick for gran#ing permisslon to adapf therr publication. For more defails on these bonding op#fons,please vfsft www.orrick.com�leuAload/�657.Adf. 2009 Summer Youth Employment Program:ARRA includes$'I.2 billion in grants to states to suppiement existing Workforce lnvestment Act(W1A)youth activities, including summer employment.W!A youth fur�cfs provide economicaHy disadvantaged youth with training and other services to pro�ide them with the skills necessary to obtaln unsubsidized employment,complete secondary ar post-secondary education,enter the military service,or enroll in a qualified apprenticeship program.The$415 million allocated to Cafifomia nearly doubles the amount of WIA funds the federa[govemment has made available to California in the current fiscal year. Strengthening Communittes Fund—Nonprofft Capacity Building Program:Cities are among the orgar�izations eligibte to appiy for grants up to$1 mil{ion and sesve as a sponsoring orgartization under the Strengthening Communities Fund(SCF}Nonprofit Capacity Building program. (Grantees must provide at least 2�percent of the tota!approved cost of the project.) 6