Rules Committee advances I-Bank nominee Andy Nakahata and clears several governor appointments

Andy Nakahata, nominated to be executive director of the California Infrastructure and Economic Development Bank (I-Bank), addressed the Senate Rules Committee and urged the panel to consider his 30 years of experience in infrastructure finance.

"My name is Andy Nakahata, and I'm honored to be considered for the California Infrastructure and Economic Development Bank's next executive director," Nakahata said in his opening remarks, noting work in the private sector and a recent year of service within I-Bank.

Why it matters: The committee's decision to advance Nakahata sends the nomination to the full Senate for confirmation and preserves the Legislature’s ability to shape who leads a state entity that helps finance local infrastructure and small-business projects statewide.

In questioning, Senator John Laird pressed Nakahata on how I-Bank ensures geographic equity and outreach to counties that have not used I-Bank programs. Nakahata said the bank relies on financial development corporations and participating lenders to extend its reach, monitors lending by county, and conducts outreach and events to raise awareness. He said staff also are working to publish a pro forma term sheet on the I-Bank website to make program requirements more accessible.

Senator Lena Gonzalez (via remarks recorded as Senator Reyes in the transcript) and others asked about the bank's role in large transmission projects and loan performance. Nakahata described the Transmission Infrastructure Accelerator as intended to supply a portion of the capital stack for multibillion-dollar transmission projects and said those projects must first clear the CAISO transmission planning process. On loan performance, Nakahata said the bank measures success by repayment and default rates and stated the Small Business Finance Center’s default rate is "right around 22%."

Three members of the public spoke in support of Nakahata: Sean Boyer, managing director at Seaberg Williams Schenck; Jenna McGahn, a partner at Orrick (bond counsel); and Brandon Diaz, a public finance practitioner. Boyer called Nakahata "exceptional" and praised his commitment to California communities.

Committee action: After public comment, Senator Grove moved to advance Nakahata’s nomination. The roll call recorded Limon — Aye; Grove — Aye; Jones — Aye; Laird — Aye; Reyes — Aye. The committee voted 5 to 0 to move the nomination to the full Senate for confirmation.

Other committee business: The Rules Committee also considered several governor’s appointments not required to appear and procedural items during the public session. Highlights and outcomes recorded in the public record include:

- Castro Rodriguez (item 2b) to the Board of State and Community Corrections: motion made by Senator Laird; recorded as approved in the committee’s public roll call (3 to 0 at the first recording). - Richard Stein (item 2c) to the California Arts Council: motion moved and approved in committee (recorded ayes in committee roll calls). - Nicholas Hardiman (item 2d) to the California Housing Finance Agency board of directors: motion moved and approved (recorded ayes in committee roll calls). - Reference of bills to committees (item 3), committee and subcommittee ratifications (items 4–8), and floor acknowledgments (items 12–17) were moved and approved in committee. - The committee voted to suspend Senate Rule 22.5 (items 9–11) to allow additional bill introductions; that suspension passed 3 to 1 in the recorded roll call.

What’s next: Nakahata’s nomination is scheduled for consideration by the full Senate for confirmation. The committee adjourned the public session and convened an executive session to continue closed business.

Sources and attribution: Quotes and attributions in this article come directly from the hearing record and the named speakers who addressed the committee in the public record: Andy Nakahata, Senator John Laird, Senator Grove, Senator Limon, Senator Jones, Senator Reyes, Sean Boyer, Jenna McGahn, and Brandon Diaz.

Ending: The committee recorded its votes on appointments and procedural items in the public session and advanced Nakahata’s nomination to the full Senate, where members will have a chance to confirm or reject the appointment.