Article 3. Safe Drinking Water State Revolving Fund of California Health And Safety Code >> Division 104. >> Part 12. >> Chapter 4.5. >> Article 3.
Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
(a) "Acceptable result" means the project that, when constructed,
solves the problem for which the project was placed on the project
priority list, ensures the owner and operator of the improved or
restructured public water system shall have long-term technical,
managerial, and financial capacity to operate and maintain the public
water system in compliance with state and federal safe drinking
water standards, can provide a dependable source of safe drinking
water long-term, and is both short-term and long-term affordable, as
determined by the board.
(b) "Administrative fund" means the Safe Drinking Water State
Revolving Fund Administration Fund created by Section 116761.70.
(c) "Board" means the State Water Resources Control Board.
(d) "Cost-effective" means achieves an acceptable result at the
most reasonable cost.
(e) "Disadvantaged community" means a community that meets the
definition provided in Section 116275.
(f) "Federal Safe Drinking Water Act" or "federal act" means the
federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and
acts amendatory thereof or supplemental thereto.
(g) "Fund" means the Safe Drinking Water State Revolving Fund
created by Section 116760.30.
(h) "Financing" means financial assistance awarded under this
chapter, including loans, refinancing, installment sales agreements,
purchase of debt, loan guarantees for municipal revolving funds, and
grants.
(i) "Matching funds" means state money that equals that percentage
of federal contributions required by the federal act to be matched
with state funds.
(j) "Project" means cost-effective facilities for the
construction, improvement, or rehabilitation of a public water
system. It also may include the planning and design of the
facilities, annexation or consolidation of water systems, source
water assessments, source water protection, and other activities
specified under the federal act.
(k) "Public agency" means any city, county, city and county,
whether general law or chartered, district, joint powers authority,
or other political subdivision of the state, that owns or operates a
public water system, or any municipality, as that term is defined in
the federal act.
(l) "Public water system" or "public water supply system" means a
system for the provision to the public of water for human
consumption, as defined in Section 116275.
(m) "Safe drinking water standards" means those standards
established pursuant to Chapter 4 (commencing with Section 116270),
as they may now or hereafter be amended.
(n) "Severely disadvantaged community" means a community with a
median household income of less than 60 percent of the statewide
average.
(o) "Small community water system" has the meaning set forth in
Section 116275.
(p) "Supplier" means any person, partnership, corporation,
association, public agency, or other entity that owns or operates a
public water system.
(a) There is hereby created in the State Treasury the
Safe Drinking Water State Revolving Fund for the purpose of
implementing this chapter, and, notwithstanding Section 13340 of the
Government Code, moneys in the fund are hereby continuously
appropriated, without regard to fiscal years, to the board for
expenditure in accordance with this chapter.
(b) Notwithstanding Section 10231.5 of the Government Code, the
board shall, at least once every two years, post information on its
Internet Web site and send a link of the Internet Web site to the
policy and budget committees of the Legislature regarding the
implementation of this chapter and expenditures from the fund. The
information posted on the board's Internet Web site shall describe
the numbers and types of projects funded, the reduction in risks to
public health from contaminants in drinking water provided through
the funding of the projects, and the criteria used by the board to
determine funding priorities. The Internet Web site posting shall
include the results of the United States Environmental Protection
Agency's most recent survey of the infrastructure needs of California'
s public water systems, the amount of money available through the
fund to finance those needs, the total dollar amount of all funding
agreements executed pursuant to this chapter since the date of the
previous report or Internet Web site post, the fund utilization rate,
the amount of unliquidated obligations, and the total dollar amount
paid to funding recipients since the previous report or Internet Web
site post.
(c) This section shall become operative on July 1, 2014.
Subject to all applicable constitutional restrictions, a
city, county, or special district may borrow money and incur
indebtedness pursuant to this chapter.
(a) In addition to the actions described in Section
116760.40, the board may, to implement the Safe Drinking Water State
Revolving Fund, improve access to financial assistance for small
community water systems and not-for-profit nontransient noncommunity
water systems serving severely disadvantaged communities by doing
both of the following:
(1) Working to establish a payment process pursuant to which the
recipient of financial assistance would receive funds within 30 days
of the date on which the board receives a complete project payment
request, unless the board, within that 30-day period, determines that
the project payment would not be in accordance with the terms of the
program guidelines.
(2) Investigating the use of wire transfers or other appropriate
payment procedures to expedite project payments.
(b) This section shall become operative on July 1, 2014.
(a) The board may undertake any of the following actions
to implement the Safe Drinking Water State Revolving Fund:
(1) Enter into agreements with the federal government for federal
contributions to the fund.
(2) Accept federal contributions to the fund.
(3) Use moneys in the fund for the purposes permitted by the
federal act.
(4) Provide for the deposit of matching funds and other available
and necessary moneys into the fund.
(5) Make requests, on behalf of the state, for deposit into the
fund of available federal moneys under the federal act.
(6) Determine, on behalf of the state, that public water systems
that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
(7) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
(8) Take additional incidental action as may be appropriate for
adequate administration and operation of the fund.
(9) Enter into an agreement with, and accept matching funds from,
a public water system.
(10) Charge public water systems that elect to provide matching
funds a fee to cover the actual cost of obtaining the federal funds
pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
300j-12) and to process the loan application. The fee shall be waived
by the board if sufficient funds to cover those costs are available
from other sources.
(11) Use any source of matching funds, if not prohibited by
statute, as matching funds for the federal administrative allowance
under Section 1452(g) of the federal act (42 U.S.C. Sec. 300j-12).
(12) Establish separate accounts or subaccounts as required or
allowed in the federal act and related guidance, for funds to be used
for administration of the fund and other purposes. Within the fund,
the board may modify existing accounts and may establish other
accounts as the board deems appropriate or necessary for proper
administration of the chapter.
(13) Deposit federal funds for administration and other purposes
into separate accounts or subaccounts, as allowed by the federal act.
(14) Determine, on behalf of the state, whether sufficient
progress is being made toward compliance with the enforceable
deadlines, goals, and requirements of the federal act and the
California Safe Drinking Water Act, Chapter 4 (commencing with
Section 116270).
(15) To the extent permitted under federal law, including, but not
limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use any
and all amounts deposited in the fund, including, but not limited
to, loan repayments and interest earned on the loans, as a source of
reserve and security for the payment of principal and interest on
revenue bonds, the proceeds of which are deposited in the fund.
(16) Request the Infrastructure and Economic Development Bank
(I-Bank), established under Chapter 2 (commencing with Section 63021)
of Division 1 of Title 6.7 of the Government Code, to issue revenue
bonds, enter into agreements with the I-Bank, and take all other
actions necessary or convenient for the issuance and sale of revenue
bonds pursuant to Article 6.3 (commencing with Section 63048.55) of
Chapter 2 of Division 1 of Title 6.7 of the Government Code. The
purpose of the bonds is to augment the fund.
(17) Engage in the transfer of capitalization grant funds, as
authorized by Section 35.3530(c) of Title 40 of the Code of Federal
Regulations and reauthorized by Public Law 109-54, to the extent set
forth in an Intended Use Plan, that shall be subject to approval by
the board.
(18) Cross-collateralize revenue bonds with the State Water
Pollution Control Revolving Fund created pursuant to Section 13477 of
the Water Code, as authorized by Section 35.3530(d) of Title 40 of
the Code of Federal Regulations.
(b) This section shall become operative on July 1, 2014.
Moneys in the fund and the special accounts may be
expended for additional purposes provided in the federal act.
(a) The board may enter into an agreement with the
federal government for federal contributions to the fund only if the
board is prepared to commit to expenditure of any minimum amount in
the fund in the manner required by the federal act.
(b) An agreement between the board and the federal government
shall contain those provisions, terms, and conditions required by the
federal act, and implementing federal rules, regulations,
guidelines, and policies, including, but not limited to, agreement to
the following:
(1) Moneys in the fund shall be expended in an expeditious and
timely manner.
(2) All moneys in the fund as a result of federal capitalization
grants shall be expended to ensure sufficient progress is being made
toward compliance with the enforceable deadlines, goals, and
requirements of the federal act, including any applicable compliance
deadlines.
(3) Federal funds deposited in the special accounts are
continuously appropriated for use by the board as allowed by federal
law. Unexpended funds in the special accounts shall be carried over
into subsequent years for use by the board.
(4) This section shall become operative on July 1, 2014.
(a) The board shall implement this chapter pursuant to
the adoption of a policy handbook that is not subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of the Government Code. The policy handbook shall be
posted on the board's Internet Web site.
(b) Any regulations that have been promulgated pursuant to this
chapter are repealed effective upon adoption by the board of the
policy handbook.
(c) This section shall become operative on July 1, 2014.
(a) The board may deposit administrative fees and
charges paid by public water systems and other available and
necessary money into an account of the fund.
(b) This section shall become operative on July 1, 2014.
(a) For purposes of this section "act" means the
American Recovery and Reinvestment Act of 2009.
(b) Notwithstanding any other provision of this chapter or any
regulations adopted pursuant to this chapter, the department may
expend moneys in the fund, received from the federal government
pursuant to the American Recovery and Reinvestment Act of 2009
(Public Law 111-5), in accordance with the provisions of the act and
federal guidelines implementing the act. To the extent that any law
or regulation of the state is in conflict with the provisions and
requirements of the act, to the extent that the conflict impairs the
expenditure of federal moneys received, the provisions and
requirements of the act shall prevail.
(c) The department may develop criteria necessary to implement the
act. These criteria shall not be subject to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code). The department
shall publish the criteria on its Internet Web site and shall provide
opportunity for public review and comment, to include at least one
public hearing conducted upon not less than 20 days' notice.
(d) For the implementation of the act, the maximum amount of a
grant to an applicant under this chapter is ten million dollars
($10,000,000) per project.
(a) The Safe Drinking Water Small Community Emergency
Grant Fund is hereby created in the State Treasury.
(b) The following moneys shall be deposited in the grant fund:
(1) Moneys transferred to the grant fund pursuant to subdivision
(c).
(2) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the moneys deposited in the grant fund.
(c) (1) For any financing made pursuant to this chapter, the board
may assess an annual charge to be deposited in the grant fund in
lieu of interest that would otherwise be charged.
(2) Any amounts collected under this subdivision shall be
deposited in the grant fund.
(3) The charge authorized by this subdivision may be applied at
any time during the term of the financing and, once applied, shall
remain unchanged, unless the board determines that the application of
the charge is any of the following:
(A) No longer consistent with federal requirements regarding the
fund.
(B) No longer necessary.
(C) Negatively affecting the board's ability to fund projects that
support the board's goals as specified in this chapter.
(4) If the board ceases collecting the charge before the financing
repayment is complete, the board shall replace the charge with an
identical interest rate.
(5) The charge authorized by this subdivision shall not increase
the financing repayment amount, as set forth in the terms and
conditions imposed pursuant to this chapter.
(d) (1) Moneys in the grant fund may be expended on grants for
projects that meet the requirements of this chapter and that serve
disadvantaged and severely disadvantaged communities or address
emergencies experienced by small community water systems.
(2) For the purpose of approving grants, the board shall give
priority to projects that serve severely disadvantaged communities.
(3) Funds expended pursuant to this section shall be expended in a
manner consistent with the federal EPA capitalization grant
requirements established in Section 35.3530(b)(2) of Title 40 of the
Code of Federal Regulations.
(e) This section shall become operative on July 1, 2014.