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SACRAMENTO – In an effort to increase contracting opportunities for California’s small businesses, the California Department of Transportation (Caltrans) has partnered with the U.S. Small Business Administration (SBA) to help California small businesses bid on construction projects.
The first such partnership in the nation and one of the top ten recommendations from participants at Governor’s Conference on Small Business & Entrepreneurship, the joint Bonding Assistance Initiative helps qualified small businesses access bond guarantees – which are required on Caltrans construction contracts and are currently difficult for small businesses to attain.
“Small businesses are the backbone of our economy and California’s new partnership with the U.S. Small Business Administration relieves what was previously a huge challenge for these organizations in bidding on Caltrans projects,” said Gov. Arnold Schwarzenegger. “Helping California’s small businesses helps our economy, helps our state – and in this case helps level the playing field for these small business contractors.”
Under the joint Bonding Assistance Initiative, qualified small businesses can more easily obtain the necessary bond guarantees required on Caltrans construction contracts.
Prior to this partnership, California-based small businesses faced a limited number of companies issuing SBA surety bond guarantees. California’s new partnership with the SBA will increase the number of surety bond companies statewide so small businesses will have easier access to bond guarantees and applications, which are required on Caltrans construction contracts.
With better access to bond guarantees, this initiative will help increase small business bid participation as Caltrans advertises its projects, including those funded by the American Recovery and Reinvestment Act (Recovery Act). California has received nearly $2.6 billion in Recovery Act funding for highway and local streets, and Caltrans is advertising projects for contractors, including small businesses.
The SBA helps eligible small businesses obtain the surety and performance bonds needed to work on state highway projects through its Surety Bond Guarantee Program, a public-private partnership between the federal government and the bond-issuing surety industry.
Caltrans, through its Office of Business and Economic Opportunity, will work in conjunction with the SBA to provide free education and technical assistance statewide through Caltrans and SBA district offices.
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The Senate Appropriations Committee voted 8-5 on May 26 to approve the Wiggins bill, SB 730, meaning the measure will next be considered by the full Senate.
Under current law, operators of solid waste disposal facilities are required to pay a "tipping fee" to the state of $1.40 per ton, generating about $50 million per year in revenues. These funds are used by the California Integrated Waste Management Board (CIWMB) to provide grants and loans to local governments, educational, and private entities for projects that reduce waste or clean up waste, as well as to provide technical assistance from the Board to local governments.
SB 730 would require the operators of transfer or processing stations that transfer waste out of the state for disposal to pay the tipping fee of $1.40 per ton on such waste. They currently pay no such fee.
Nearly 750,000 tons of waste were exported to out-of-state landfills in 2000, resulting in a loss of nearly $1 million in revenues generated from the disposal surcharge. Public entities, such as cities and counties, disposing of their solid waste out-of-state are not contributing to the CIWMA.
However, these same jurisdictions are benefiting from those who are contributing to the CIWMA, because they are still eligible to receive funds for grants through the program.
“SB 730 is a revenue-generating measure for the state,” Wiggins said. “It requires jurisdictions that ship their waste out-of-state to pay into the state tipping fee, just like all the other jurisdictions that dispose of their waste in-state.
“This bill is about equity, and it will result in the state receiving anywhere from $500,000 to $1 million a year, from jurisdictions that have avoided paying the tipping fee, to fund the Waste Board’s grant and loan programs.
“Cities and counties can continue to ship their waste out of state,” Wiggins added “This bill ensures that all jurisdictions are eligible for grants and loans provided by the Waste Management Board, if all jurisdictions pay into the fund.”
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As general manager, Harms will oversee the Bottle Rock business including supervision of the plant’s compliance department and development activities, and will work closely with the Bottle Rock staff to ensure effective communication with regulators, utilities, and local residents.
“With almost 20 years of industry experience, Brian is a seasoned manager and the right person to lead our business,” said Joshua Haacker, a principal with US Renewables Group. “He has a strong track record of hands-on plant management and a demonstrated ability to drive effective compliance programs.”
Haacker said Harms joins a team that is committed to running the best geothermal power plant in the Geysers – a productive, safe and environmentally compliant operation. His expertise also will be critical as they look to increase their output of clean and renewable energy. “He is a welcome addition to our dedicated management team,” said Haacker.
Prior to Bottle Rock, Harms most recently served as general manager at Ormat Nevada Inc.’s Imperial Valley operations, where he oversaw multiple geothermal power facilities. While there, he supervised expansion efforts, implemented best practices, and served as the company’s key liaison with utilities, customers, land owners and regulators.
Before that, Harms was the geothermal operations and maintenance manager at MEHC CalEnergy, where he was responsible for all generation requirements and oversaw risk management, environmental compliance and safe workplace efforts at the 335 megawatt project.
Bottle Rock Power Plant is a geothermal power plant located in the Geysers, the largest producing geothermal region in the world. Bottle Rock harnesses steam directly from the earth to provide continuous, reliable and clean electricity to more than 10,000 homes in northern California. It's owned by Riverstone Holdings LLC and US Renewables Group.
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By declaring a disaster, Administrator Mills’ action makes low interest Economic Injury Disaster Loans (EIDL) available immediately to help meet financial needs caused by the closure of the 2009 salmon fishing season beginning April 8.
Mills’ action responded to a request from Matthew R. Bettenhausen, acting secretary of the California Emergency Management Agency, on behalf of Gov. Arnold Schwarzenegger, which SBA received May 18.
The declaration covers the California counties of Alameda, Del Norte, Fresno, Glenn, Humboldt, Kings, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Luis Obispo, San Mateo, Santa Clara, Santa Cruz, Siskiyou, Solano, Sonoma, Tehama, Trinity and the neighboring Oregon counties of Curry and Josephine.
SBA is offering working capital loans of up to $2 million at an interest rate of 4 percent with terms up to 30 years.
“SBA Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. These loans can provide vital economic assistance to fishing and fishing-dependent businesses to help overcome the temporary loss of revenue they are experiencing,” said Alfred E. Judd, Director of SBA’s Disaster Field Operations Center-West.
“SBA customer service representatives will be in the affected communities along the California coast to meet individually with business owners to answer questions about SBA’s EIDL assistance, issue loan applications, explain the application process, and help them complete their applications,” Judd said.
Some eligible business owners include: small businesses engaged in salmon fishing in the waters affected by the closure (employees or crew members are not small businesses and are not eligible), and small businesses dependent on the catching or sale of salmon, including suppliers of fishing gear and fuel, docks, boatyards, processors, wholesalers, shippers, and retailers, and other small businesses dependent on revenue from the above.
“We recognize that some affected businesses may be reluctant to seek a loan to meet their immediate financial needs, but we encourage each business to learn how an SBA disaster loan can help them recover from the closure of the fishing season,” Judd emphasized. Business owners may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.
In addition, loan information and application forms are also available from SBA’s Customer Service Center by calling SBA toll-free at 800-659-2955, emailing
The deadline to apply for these loans is Feb. 22, 2010.
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