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iBank asks Legislature to remove sunset for Climate Catalyst Fund amid federal funding uncertainty
Summary
The state financing authority iBank urged the Assembly panel to remove the program sunset for the Climate Catalyst revolving fund so the agency can leverage upcoming federal grants and build a permanent green-bank lending platform; lawmakers asked for more detail and requested the fund27s private-sector partner to appear for questions.
Scott Wu, Executive Director of the California Infrastructure and Economic Development Bank (iBank), told the subcommittee that iBank's Climate Catalyst Revolving Loan Fund (often called "Catalyst") has been appropriated $322 million over several years but had most of that money swept back during state budget shortfalls; $25 million remains invested with a private fund and roughly $15 million of program income remains in iBank accounts.
"In total, Kalas received $322,000,000 and was swept of $297,000,000 The $25,000,000 difference having been invested in Blue Forest," Wu told the committee, describing one anchor investment into a private wildlife/forest-focused fund.
Wu said iBank recently secured federal funding streams24including work tied to the U.S. EPA Greenhouse Gas Reduction Fund (National Clean Investment Fund) and the Inflation Reduction Act27s greenhouse-gas programs24that could be paired with state Catalyst capital. He said those federal awards are substantial but time-limited and that a permanent state catalyst fund (without a sunset) would allow a revolving vehicle to attract and leverage private capital across multiple climate sectors.
Several members asked for more detail on the Blue Forest investment and requested that the private fund manager come before the committee for questions. Committee members expressed concern about the program's shaky history of state appropriations and rescissions and said they wanted clearer documentation on prior investments and prospective pipelines before acting to make Catalyst permanent.
Ending: iBank asked the Legislature to remove the fund27s sunset and to preserve a revolving-capital vehicle; lawmakers asked staff to arrange follow-up testimony from the private fund manager and to provide additional documentation on past commitments and program pipelines.
