Federal Requirements

All financings made under the Climate Catalyst Program’s Financing Plan, including the program’s three priority sectors — Distributed Generation and Storage, Zero-Emission Transportation, Net-Zero Emissions Buildings — and Six-Factor Eligibility Criteria, must comply with the federal requirements below, as applicable. Prior to applying to the Climate Catalyst Program for projects eligible under the Climate Catalyst Financing Plan, IBank encourages applicants to review these requirements and their statutory language and build compliance with these requirements into the project’s design, scope of work, budget, and all other relevant components.

Build America, Buy America (BABA):

IBank is required to ensure that all financings made under the Climate Catalyst Financing Plan for infrastructure utilize iron, steel, manufactured products, and construction materials produced in the United States, as outlined in the federal  Build America, Buy America Act – Public Law 117-58 (P.L. 117-58, Secs §§  70911 – 70917).

Helpful Resources for Lenders and Borrowers:

• U.S. Environmental Protection Agency’s Build America Buy America webpage
• U.S. Department of Commerce’s Build America Buy America resources

 

Davis-Bacon and Related Acts (DBRA):

Climate Catalyst Projects financing construction activities under the Climate Catalyst Financing Plan may be subject to labor standards outlined in Section 314 of the Clean Air Act (42 USC § 7614) (DBRA), Davis-Bacon Act (402 USC §§ 3141-3144). Consistent with the definitions at 29 CFR § 5.2, the term “construction” refers to all types of work done on a particular building or work at the site of the work by laborers and mechanics employed be a contractor or subcontractor. Additional guidance is available in the definition of the term “building or work” in 29 CFR § 5.2.

Davis-Bacon and Related Acts (DBRA) is a collection of labor standards provisions administered by the Department of Labor, that are applicable to capital outlays involving construction. These labor standards include the:

• Federal Davis-Bacon Act (40 USC §§ 3141-3144), which requires payment of prevailing wage rates for laborers and mechanics on construction contracts of $2,000 or more.
• Federal Copeland “Anti-Kickback” Act (45 CFR § 2543.82), which prohibits a contractor or subcontractor from inducing an employee into giving up any part of the compensation to which he or she is entitled.
• Federal Contract Work Hours and Safety Standards Act (40 USC §  3701) , which requires overtime wages to be paid for over 40 hours of work per week, under contracts in excess of $100,000.

Helpful Resources for Lenders and Borrowers: 

• U.S. Department of Labor’s Prevailing Wage Resource Book
• U.S. Department of Labor’s Employment Law Guide: Federal Contracts – Working Conditions: Prevailing Wages in Construction Contracts
• U.S. Department of Labor’s Davis-Bacon and Related Acts Fact Sheets

 

Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA):

The federal Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) (49 CFR Part 24) applies to acquisitions of property and displacements of individuals and businesses that result from federally assisted programs. Climate Catalyst Projects financed under the Climate Catalyst Financing Plan that include the acquisition of property must comply with the URA (49 CFR Part 24) if the acquisition of the property results in permanent displacement of individuals or businesses.

Helpful Resources for Lenders and Borrowers: 

• U.S. Housing and Urban Development’s Real Estate Acquisition and Relocation Overview
• U.S. Housing and Urban Development’s Tenant Assistance, Relocation, and Real Property Acquisition Handbook (1378.0)

 

National Historic Preservation Act (NHPA):

Section 106 of the National Historic Preservation Act (NHPA) (16 USC § 470 et seq.) requires all federal agencies to consider the effects of their undertakings, including the act of awarding a grant or cooperative agreement, on historic properties, and to provide the Advisory Council on Historic Preservation (ACHP) a reasonable opportunity to comment on such undertakings. All projects financed under the Climate Catalyst Financing Plan involving historical properties may be subject to NHPA.  Historic properties can include: (a) land or buildings listed in or eligible for listing on the National Register of Historic Places; (b) archaeologically sensitive areas or in an area where traditional cultural properties are located; and (c) properties that are associated with significant historic events, are associated with significant people, embody distinctive characteristics, and contain important precontact information.

Helpful Resources for Lenders and Borrowers: 

• U.S. National Park Service’s National Historic Preservation Act Overview

 

Archeological and Historic Preservation Act (AHPA):

The Archeological and Historic Preservation Act (AHPA) (54 U.S.C. §§ 312501-312508) requires federal agencies to identify relics, specimens, and other forms of scientific, prehistorical, historical, or archaeologic data that may be lost during the construction of federally-sponsored projects to ensure that these resources are not inadvertently transferred, sold, demolished or substantially altered, or allowed to deteriorate significantly. If archeologically significant artifacts or similar items are discovered after a project financed under the Climate Catalyst Financing Plan has begun and AHPA is triggered, the project will need to work with IBank to notify the US Environmental Protection Agency (US EPA) and ensure compliance.

Helpful Resources for Lenders and Borrowers: 

• U.S. National Park Service’s Archeological and Historic Preservation Act of 1974

 

Endangered Species Act:

Climate Catalyst Projects financed under the Climate Catalyst Financing Plan must identify any impact or activities that may involve a threatened or endangered species, as specified in 50 CFR Part 402. Federal agencies have the responsibility to ensure that no adverse effects to a protected species or habitat occur from actions under Federal assistance awards and conduct the reviews required under the Endangered Species Act, as applicable.

Helpful Resources for Lenders and Borrowers: 

• U.S. Environmental Protection Agency’s Summary of the Endangered Species Act

 

Farmland Protection Policy Act (FPPA) :

Projects are subject to Farmland Protection Policy Act (FPPA) (7 CFR Part 658) requirements if they may irreversibly convert farmland (directly or indirectly) to nonagricultural use. If Climate Catalyst Projects financed under the Climate Catalyst Financing Plan has effects on farmland and its conversion to nonagricultural uses, projects must identify their effects on farmland and its conversion, mitigate these effects, and ensure that projects are carried out in a manner that is compatible with the farmland preservation policies of state and local governments, and private organizations. If applicable, the project will need to work with IBank to notify the US EPA or the US Natural Resource Conservation Service, as appropriate, to ensure compliance.

Helpful Resources for Lenders and Borrowers: 

• U.S. Department of Agriculture’s Natural Resources Conservation Service’s Farmland Protection Policy Act summary and resources
• U.S. Department of Agriculture’s Natural Resources Conservation Service’s Farmland Protection Policy Act presentation

 

Coastal Zone Management Act:

Climate Catalyst Projects financed under the Climate Catalyst Financing Plan must be consistent with a coastal State’s approved management program for the coastal zone, pursuant to the federal Coastal Zone Management Act (P.L. 92-583). 

Helpful Resources for Lenders and Borrowers: 

• U.S. National Oceanic and Atmospheric Administration’s Coastal Zone Management Program Guidance
• California Coastal Commission’s Description of California’s Coastal Management Program