our complete list of services

• Public Tax-Exempt Bonds
• Official Statments
• Carbon Credit Advisory Services
• Available Credits
• Buyer Services
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• Specialized Financing
• Consulting
• Expert Testimony

Services: Specialized Financing

State Revolving Funds (“SRFs”)

Many states have established State Revolving Funds (“SRFs”).  The SRFs provide financing at interest rates that are substantially lower than interest rates available in the public tax exempt bond markets and that my be as low as 0% for certain borrowers. 

New Projects

Environmental Capital has extensive experience in assisting clients in obtaining and maximizing the benefits of SRF loans.  We advise the client on the steps required and the best time frame to secure SRF financing.  We have knowledge of SRF qualified projects and have advised on a wide range of SRF transactions, specifically designed to meet our clients needs, including 0% short term loans, long term subsidized bonds, and conversions from short term loans to long term subsidized financing. 

Refunding Previously Issued Bonds

Environmental Capital has extensive experience in refunding previously issued public water and sewer bonds through the SRFs.  Because of the subsidies offered through the SRFs, public water and sewer bonds that can not be refunded economically through conventional refundings, maybe refunded with substantial savings through one of the SRFs.  Environmental Capital is happy to perform such analyses for issuers with public water or sewer debt outstanding.

Clean Renewable Energy Bonds (“CREBs”)

The CREBs program is currently awaiting Congressional reauthorization. The previous program operated as described below.

A CREB is a special type of bond known as a “tax credit bond” CREB financing is only available to projects owned by governments and electric cooperatives.  CREBs were created as part of the federal renewable energy incentive program, which began in 2006.  This program was created to encourage the implementation of clean renewable energy projects.  The CREB program offers qualified borrowers the luxury of a 0% interest rate.  The issuer of the CREBs does not make interest payments; rather, the federal government provides a tax credit to the bondholder in lieu of the issuer paying interest to the bondholder.

The CREB program is available for the following types of projects:

• Wind
• Closed-loop biomass
• Open-loop biomass
• Geothermal or Solar
• Small irrigation power
• Landfill gas
• Trash combustion
• Refined coal production
• Qualified hydropower

Environmental Capital serves its clients in assisting and preparing the application for a CREB allocation from the Internal Revenue Service (“IRS”). 

Below is a brief overview of the Federal CREB program:

• Borrowers must apply for a CREB allocation from the IRS.  Note:  The CREB program must be reauthorized by Congress. 

•  95% or more of the proceeds must be used for capital expenditures of a qualified issuer.

• CREBs can be used for refinancing projects that were put in place after August 8, 2005, if the borrower declares at the time of the original borrowing that they intend to use CREBs for refinancing.

• Level amortization is required.

• Tax exempt financing arbitrage laws apply.

• The Tax Credit is includable in its recipient’s gross income.

• CREBs allocated in 2006 and 2007 must be issued by 12/31/2008.
• CREB rates and maturities are set on IRS website daily.