California Announces Sale of US $20M in CREBs

California State Treasurer Bill Lockyer announced the sale of US $20 million in clean renewable energy bonds (CREBs) for the California Department of Transportation (Caltrans) to install solar panels in 70 of its facilities, a green building initiative that will save taxpayers $52.5 million in energy costs over the 25-year life of the equipment, according to Lockyer.

“This project is a great example of how to use innovative financing to green state government, make it more cost-effective for taxpayers and bolster businesses and jobs in a vital sector of our economy,” said Lockyer.  “In just a short time, taxpayers will make a return on their investment and over the long-term they’ll save themselves millions of dollars in energy costs.”
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) sold the bonds on behalf of Caltrans.  The transaction marks CAEATFA’s first use of the CREB program created through the Energy Tax Incentive Act of 2005.
CAEATFA secured for Caltrans a 1.45 percent interest rate over the bonds’ 15-year term. Total debt service costs (principal and interest) over the 15-year term will total $22.5 million.  During the same period, Caltrans will save $24.7 million on its energy bills. Over the entire 25-year lifespan of the photovoltaic solar panels, Caltrans’ energy cost savings will total $52.5 million, with $27.8 million of the savings coming after the bonds are repaid.

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