California Infrastructure and Economic Development Bank Funds Municipal Loan for Utility Undergrounding Project
IBank poised to help California cities and counties with similar projects
As wildfire threats grow in frequency and intensity, communities are seeking long-term solutions that protect residents and infrastructure. The California Infrastructure and Economic Development Bank (IBank) recently funded a utility undergrounding project in the city of Del Mar and now stands ready to help cities, counties, and special districts across California finance similar projects that strengthen safety, reliability, and resilience.
Undergrounding utility lines is one of the most effective ways to reduce wildfire risks, improve service reliability, and create safer communities. Following the successful close of Del Mar’s $5 million loan from IBank’s Infrastructure State Revolving Fund (ISRF) loan program, the state agency is inviting other municipalities to explore similar financing options for their projects.
Why Utility Undergrounding Matters
- Reduces wildfire ignition risk by removing overhead lines vulnerable to wind, vegetation, and extreme weather.
- Improves public safety by supporting safer and more reliable access for emergency responders.
- Increases service reliability for residents and businesses.
- Lowers long-term maintenance costs by replacing aging infrastructure with durable underground systems.
- Supports climate resilience in high fire-threat areas.
“As California continues to face severe wildfire seasons, undergrounding is an impactful step communities can take to protect lives, property, and essential services,” said IBank Executive Director and CEO Andy Nakahata. “IBank is committed to helping cities and counties move these vital projects forward with accessible financing.”
IBank financing features:
IBank’s infrastructure loans provide low-cost, direct financing to local governments as well as nonprofits sponsored by public agencies for a wide variety of public infrastructure and economic expansion projects that improve and sustain communities. Eligible borrowers include local governments like cities and counties, and special districts.
If you’re a municipality looking for a loan, IBank:
- Saves you time. IBank conducts preliminary reviews and provides feedback before inviting you to apply.
- Accepts applications year-round. Because IBank issues its own bonds, funds are always available.
- Provides funds within 45-90 days of IBank board approval.
- Offers competitive, fixed-interest rates for up to 30 years. IBank is AAA rated and passes its low borrowing costs to you.
- Issues non-competitive approvals. There is no scoring mechanism used to compete with other borrowers for funds. Loans are approved on a first-come, first-served basis.
- Requires minimum compliance.
- Provides you with transparency every step of the way.
For more information, visit ibank.ca.gov.
About the California Infrastructure and Economic Development Bank: IBank was created in 1994 to finance public infrastructure and private development that promote a healthy climate for jobs, contribute to a strong economy, and improve the quality of life for Californians and communities throughout the state. IBank is located within the Governor’s Office of Business and Economic Development and is governed by a five-member board of directors.
IBank issues tax-exempt and taxable revenue bonds, provides financing to public agencies, provides credit enhancements, acquires and leases facilities, leverages state and federal funds, and provides loan guarantees and other credit enhancements for small businesses. Visit us at ibank.ca.gov.
Karen C. Naungayan
Deputy Director of External Affairs
Office: 916.447.8474
Mobile: 916.207.9132
