The SIB program in California was originally authorized by statute in 1998 for administration by the California Infrastructure and Economic Development Bank (CIEDB) under the California Technology, Trade and Commerce Agency. Known as the Transportation Finance Bank (TFB), it was established to provide credit enhancements, but was never formally marketed and no loan guarantees were ever made.

With no activities in the TFB program, in fiscal year 2001/2002, the California Department of Transportation (Caltrans) initiated legislative amendments, with CIEDB’s concurrence, to allow Caltrans to administer and operate the TFB program. With the passage of that legislation (AB 2996, Chapter 805, Statutes of 2002), Caltrans became the administrator of the TFB program in the 2002/2003 fiscal year. In that same fiscal year, Caltrans developed guidelines and loan application documents and submitted them for adoption through the California Transportation Commission (CTC). CTC adopted the guidelines and the loan application package during its January 2003 meeting. Caltrans provided the non-Federal matching funds for the $3 million Federal share of the program for capitalization of the bank. Loans and public/private partnerships for projects that meet basic eligibility criteria. Currently, Caltrans has received one loan application package from a local agency and loan documents are under review.

Additional information about California’s Transportation Finance Bank program, including legislation, guidelines, the loan application and agreement package, related interest rates (T-Bill), and a fact sheet, is available at the Caltrans Division of Innovative Finance web site at:

http://www.dot.ca.gov/hq/innovfinance/t_f.htm.