Article 2. General Provisions of California Water Code >> Division 26. >> Chapter 8. >> Article 2.

Unless the context otherwise requires, the following definitions govern the construction of this chapter:
  (a) "Account" means the Water Conservation Account created by Section 79152.
  (b) (1) "Water conservation program or project" means those feasible capital outlay measures undertaken to improve the efficiency of water use through projects, the benefits of which exceed the costs.
  (2) The programs include, but are not limited to, all of the following:
  (A) The lining or piping of ditches.
  (B) Improvements in water distribution system controls such as automated canal control, construction of small reservoirs within distribution systems that conserve water that has already been captured for use, and related physical improvements.
  (C) Tailwater pumpback recovery systems.
  (D) Major improvements to, or replacement of, deteriorated distribution systems to reduce leakage and maximize conservation.
  (E) Capital outlay features of agricultural water conservation programs identified in the "Memorandum of Understanding Regarding Efficient Agricultural Water Management Practices," dated July 16, 1997, and endorsed by the Agricultural Water Management Council, and any amendments thereto.
  (c) "Economically disadvantaged area" means any area of the state for which both of the following statements apply:
  (1) A median household income that is less than forty thousand dollars ($40,000) based on the most recent federal census.
  (2) An annual average unemployment rate that is greater than 9 percent based on the most recent federal census.
  (d) (1) "Groundwater recharge facilities" means lands and facilities for artificial groundwater recharge through methods that include, but are not limited to, percolation using basins, pits, ditches, and furrows, modified streambeds, flooding, and well injection. For the purposes of this chapter, expenditures for "groundwater recharge facilities" include capital outlay expenditures to expand, renovate, or restructure land and facilities used for the purposes of groundwater recharge and to acquire additional land for recharge basins.
  (2) Groundwater recharge facilities may include any of the following:
  (A) Instream facilities for regulation of water levels, but not regulation of streamflow to accomplish diversion from the waterway.
  (B) Agency-owned facilities for extraction.
  (C) Conveyance facilities to convey water to the recharge site, including devices for flow regulation and measurement of recharge waters.
  (3) Any part or all of the project facilities, including the land under the facilities, may consist of separable features, or an appropriate share of multipurpose features, of a larger system, or both.
  (e) "Infrastructure rehabilitation project" means a project located in an economically disadvantaged area for the repair, replacement, restoration, or rehabilitation of an existing water distribution system that delivers water for domestic, municipal, or industrial uses, including pipelines, pump stations, valves, meters, reservoirs, and all other appurtenant water delivery facilities that result in the reduction or elimination of significant distribution system water losses or replace a failing system component that threatens the health, safety, welfare, and economy of areas relying on the water distribution system.
  (f) "Local agency" or "agency" means any city, county, city and county, district, joint powers authority, or other political subdivision of the state involved with water management. "Local agency" or "agency" also means a mutual water company. For purposes of this chapter, mutual water company means a nonprofit corporation organized for, or engaged in the business of, developing, distributing, supplying, or delivering water for irrigation or domestic use, or both, to its members or shareholders, at actual cost plus necessary expenses.
  (g) "Project" may include any of the following:
  (1) Water conservation project.
  (2) Groundwater recharge facilities.
  (3) Urban water conservation project.
  (4) Infrastructure rehabilitation project.
  (h) "Urban water conservation project" means capital outlay features of urban water conservation programs identified in the "Memorandum of Understanding Regarding Urban Water Conservation in California," as amended on April 8, 1998, by the California Urban Water Conservation Council, and any amendments thereto.

The Water Conservation Account is hereby created in the fund.

(a) The sum of one hundred fifty-five million dollars ($155,000,000) is hereby transferred from the fund to the account for the purposes of this chapter.
  (b) Unallocated funds remaining in the Water Conservation and Groundwater Recharge Subaccount in the Water Supply Reliability Account in the Safe, Clean, Reliable Water Supply Fund on March 8, 2000, shall be transferred to, and all money repaid to the state pursuant to any loan contract executed under Article 3 (commencing with Section 78670) of Chapter 6 of Division 24 shall be deposited in, the account for the purposes of entering into additional loans under Article 3 (commencing with Section 79157) and Article 4 (commencing with Section 79161).

(a) Any loan agreement entered into pursuant to this chapter may include provisions determined to be necessary by the department.
  (b) Any loan agreement pursuant to this chapter shall include all of the following:
  (1) A finding by the department that the agency has the ability to repay the loan, that the project is cost-effective, and that the project is feasible from an engineering or hydrologic standpoint, or both.
  (2) An agreement by the agency to proceed expeditiously with, and complete, the project in conformance with approved plans and specifications and to operate and maintain the project properly upon completion throughout the repayment period.
  (3) A provision that there shall be no moratorium on, or deferment of, payments of principal or interest.
  (4) (A) A loan period of not more than 20 years with an interest rate set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, to be computed according to the true interest cost method.
  (B) If the interest rate so determined is not a multiple of 1 percent, the interest rate shall be set at the next multiple of one-tenth of 1 percent.
  (C) The interest rate for each loan agreement shall be applied throughout the repayment period of the contract. There shall be a level annual repayment of principal and interest on the loans.

(a) Any grant agreement entered into pursuant to this chapter may include provisions determined to be necessary by the department.
  (b) Any grant agreement pursuant to this chapter shall include both of the following:
  (1) A determination by the department that the project is economically justified, and that the project is feasible.
  (2) An estimate of the reasonable cost and benefit of the project, including a feasibility report that sets forth the engineering and financial feasibility of the project, and shall include a description of the proposed facilities and their relation to other water-related facilities in the system service area.

Notwithstanding any other provision of law, regulations set forth in Chapter 2.3 (commencing with Section 450.1) of Division 2 of Title 23 of the California Code of Regulations that are in effect on March 8, 2000, may be used to carry out this chapter.

Not more than 3 percent of the total amount deposited in the subaccount may be used by the department to pay the costs incurred in connection with the administration of this article.