General obligation, facilities leasing and a rice waste plant among the listed bonds
In a statement on Aug. 16, State Treasurer Fiona Ma announced the upcoming sales of seven bond issues totaling approximately $5.16 billion, and an additional Green Bond sale for $73.7 million. The sales begin Sept. 5 with $2.3 billion of General Obligation bonds.
"Significant portions of these General Obligation bond sales will be used to finance older debt at today’s lower rates," Ma said in a statement. "This will save taxpayers money and free up resources for other important projects and programs."
The funding, she added, will also provide support for a range of vital infrastructure projects across the state.
According to the statement, the schedule of fall bond sales includes:
Sept. 5: Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds, approximately $2.3 billion. Proceeds will provide funding for Prop 51 (the Kindergarten through Community College Public Education Facilities Bond Act of 2016) and refinance previously issued bonds.
Sept. 17: State Public Works Board Lease Revenue Refunding Bonds, 2019 Series B, approximately $60 million. Proceeds will refinance previously issued bonds to reduce interest costs.
Week of Oct. 14: Federally Taxable Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds, approximately $800 million. Proceeds will provide funding for projects and programs under various bond acts and refinance previously issued bonds, providing permanent financing for projects funded with commercial paper notes.
Week of Oct. 28: State Public Works Board Lease Revenue Bonds, 2019 Series C, approximately $400 million. Proceeds will provide funding for two (2) projects: Department of Forestry and Fire (CalFire) Academy to construct dormitory authority building and expand mess hall. Department of Corrections and Rehabilitation (CDCR): (1) Riverside County Jail Project; (2) Santa Barbara County Jail Project; (3) Tulare County Jail Project; (4) Sutter County Jail Project; and (5) various CDCR Health Care Facility Improvement Program projects.
Nov. 6: California Health Facilities Financing Authority: No Place Like Home Program Senior Revenue Bonds (Social Bonds - Federally Taxable), approximately $500 million. Proceeds will provide funding to the Department of Housing and Community Development’s No Place Like Home Program, which aids in the acquisition, design, construction, rehabilitation, preservation and operation of permanent and supportive housing for persons who are experiencing homelessness, chronic homelessness or who are at risk of chronic homelessness, and who are in need of mental health services.
Week of Nov. 11: Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds, approximately $800 million. Proceeds will provide permanent financing for projects funded with commercial paper notes and refinance previously issued bonds at lower interest cost.
Week of Dec. 2: IBank, California State Teachers’ Retirement System (CalSTRS) Headquarters Expansion Lease Revenue Bonds, Series 2019 (Green Bonds), approximately $300 million. Proceeds will fund the acquisition, design, construction and equipping of an expansion to the CalSTRS headquarters facility in West Sacramento.
More information about the upcoming fall bond sales can be found at http://BuyCaliforniaBonds.com. The bond issuances described above (including the amounts and timing thereof) are preliminary and subject to change or cancellation based on market conditions or other factors as determined by the state treasurer.
In addition, a $73.7 million tax-exempt green bond has been issued for CalPlant I, LLC, a company that will turn rice straw into medium density fiberboard at its Willows plant in the Sacramento Valley, according to a statement from Ma. The fiberboard can be used in manufacturing flooring, furniture, doors, shelves and other products.
According to the statement, the plant, scheduled to open later this year, is expected to employ 115 full time workers and an additional 450 part-time workers during the harvest season, from September through November. It will also support 325 construction jobs as this first-of-a-kind project is being built.
Rice straw is a waste product created when approximately 500,000 acres of rice is grown and harvested in California each year. Currently, according to the treasurer’s office, much of rice straw is eliminated by flooding fields and allowing the straw to decompose, which releases methane gas. The new plant will avoid that process for about 275,000 tons annually and save an estimated 17.8 billion gallons of water and prevent about 57,000 tons of methane, a greenhouse gas, from being released into the atmosphere.
The bond sale was authorized by the California Pollution Control Financing Authority (CPCFA), which is chaired by Ma.
“This project is overflowing with benefits,” Treasurer Ma said in a statement. “It’s a massive recycling effort that will assist rice growers, improve the environment by saving water, reduce greenhouse gases, produce high quality fiberboard for construction and renovation, and support much needed jobs in this rural community.”
According to the statement, CalPlant 1 self-certified the bonds as green bonds because they are consistent with the Green Bond Principles adopted by the International Capital Market Association.
The 300,000-square-foot plant will recycle straw from up to100,000 acres annually. It will produce 112-million-square feet of medium density fiberboard (MDF) using a patented method of production that meets, or exceeds, the American National Standards Institute’s standards for wood-based MDF.