2007 California Water Code Chapter 12.5. Clean Water And Water Conservation Bond Law Of 1978

CA Codes (wat:13955-13969)

13955.  This chapter shall be known and may be cited as the Clean
Water and Water Conservation Bond Law of 1978.



13956.  The Legislature hereby finds and declares that clean water,
which fosters the health of the people, the beauty of their
environment, the expansion of industry and agriculture, the
enhancement of fish and wildlife, the improvement of recreational
facilities and the provision of pure drinking water at a reasonable
cost, is an essential public need.  However, because the State of
California is subject to great fluctuations in precipitation which
have created semiarid and arid conditions in many parts of the state,
and because the state has historically experienced a dry year on the
average once every fourth year and has occasionally experienced such
dry years consecutively resulting in conditions of drought, it is of
paramount importance that the limited water resources of the state
be preserved and protected from pollution and degradation in order to
ensure continued economic, community, and social growth.  Although
the State of California is endowed with abundant lakes and ponds,
streams and rivers, and hundreds of miles of shoreline, as well as
large quantities of underground water, these vast water resources are
threatened by pollution, which, if not checked, will impede the
state's economic, community and social growth.  The chief cause of
pollution is the discharge of inadequately treated waste into the
waters of the state.  Many public agencies have not met the demands
for adequate waste treatment or the control of water pollution
because of inadequate financial resources and other responsibilities.
  Increasing population accompanied by accelerating urbanization,
growing demands for water of high quality, rising costs of
construction and technological changes mean that unless the state
acts now the needs may soar beyond the means available for public
finance.  Meeting these needs is a proper purpose of the federal,
state and local governments.  Local agencies, by reason of their
closeness to the problem, should continue to have primary
responsibility for construction, operation and maintenance of the
facilities necessary to cleanse our waters.  Since water pollution
knows no political boundaries and since the cost of eliminating the
existing backlog of needed facilities and of providing additional
facilities for future needs will be beyond the ability of local
agencies to pay, the state, to meet its responsibility to protect and
promote the health, safety and welfare of the inhabitants of the
state, should assist in the financing.  The federal government is
contributing to the cost of control of water pollution, and just
provision should be made to cooperate with the United States of
America.



13956.5.  The Legislature further finds and declares that the people
of the state have a primary interest in the development and
implementation of programs, devices, and systems to conserve water so
as to make more efficient use of existing water supplies and to
reclaim wastewater in order to supplement present surface and
underground water supplies.  Utilization of reclaimed water and water
which has otherwise been conserved will economically benefit the
people of the state, will augment the existing water supplies of many
local communities, and will assist in meeting future water
requirements of the state.  It is therefore further intended by the
Legislature that the state undertake all appropriate steps to
encourage and develop water conservation and reclamation so that such
water may be made available to help meet the growing water
requirements of the state.


13957.  It is the intent of this chapter to provide necessary funds
to insure the full participation by the state under the provisions of
Title II of the Federal Water Pollution Control Act (33 U.S.C. 1251
et seq.) and acts amendatory thereof or supplementary thereto, and to
provide funds for state participation in the financing of projects,
for the control of water pollution, or for the development of water
conservation and wastewater reclamation, which are ineligible for
federal assistance under Title II of the Federal Water Pollution
Control Act and acts amendatory thereof or supplementary thereto.



13958.  The State General Obligation Bond Law is adopted for the
purpose of the issuance, sale and repayment of, and otherwise
providing with respect to, the bonds authorized to be issued by this
chapter, and the provisions of that law are included in this chapter
as though set out in full in this chapter except that,
notwithstanding anything in the State General Obligation Bond Law,
the maximum maturity of the bonds shall not exceed 50 years from the
date of each respective series.  The maturity of each respective
series shall be calculated from the date of such series.




13959.  As used in this chapter, and for the purposes of this
chapter as used in the State General Obligation Bond Law, the
following words shall have the following meanings:
   (a) "Committee" means the Clean Water and Water Conservation
Finance Committee created by Section 13960.
   (b) "Board" means the State Water Resources Control Board.
   (c) "Fund" means the State Clean Water and Water Conservation
Fund.
   (d) "Municipality" shall have the same meaning as in the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.) and acts
amendatory thereof or supplementary thereto and shall also include
the state or any agency, department, or political subdivision
thereof.
   (e) "Treatment works" shall have the same meaning as in the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) and acts
amendatory thereof or supplementary thereto, and shall also include
such additional devices and systems as are necessary and proper to
control water pollution, reclaim wastewater, or reduce use of and
otherwise conserve water.
   (f) "Construction" means any one or more of the following:
preliminary planning to determine the feasibility of treatment works,
engineering, architectural, legal, fiscal, or economic
investigations or studies, surveys, designs, plans, working drawings,
specifications, procedures, or other necessary actions, erection,
building, acquisition, alteration, remodeling, improvement, or
extension of treatment works, or the inspection or supervision of any
of the foregoing items.
   (g) "Eligible project" means a project for the construction of
treatment works which is all of the following:
   (1) Eligible for federal assistance, whether or not federal funds
are then available therefor;
   (2) Necessary to prevent water pollution;
   (3) Certified by the board as entitled to priority over other
treatment works, and which complies with applicable water quality
standards, policies and plans.
   (h) "Eligible state assisted project" means a project for the
construction of treatment works which is all of the following:
   (1) Ineligible for federal assistance.
   (2) Necessary to prevent water pollution or feasible and cost
effective for conservation or reclamation of water.
   (3) Certified by the board as entitled to priority over other
treatment works and which complies with applicable water quality and
other applicable federal or state standards, policies, and plans.
   (i) "Federal assistance" means funds available to a municipality
either directly or through allocation by the state, from the federal
government as grants for construction of treatment works, pursuant to
Title II of the Federal Water Pollution Control Act, and acts
amendatory thereof or supplementary thereto.



13959.5.  There is in the State Treasury the State Clean Water and
Water Conservation Fund, which fund is hereby created.



13960.  The Clean Water and Water Conservation Finance Committee is
hereby created.  The committee shall consist of the Governor or his
designated representative, the State Controller, the State Treasurer,
the Director of Finance, and the chairman of the board.  The
executive officer of the board shall serve as a member of the
committee in the absence of the chairman.  Said committee shall be
the "committee" as that term is used in the State General Obligation
Bond Law.


13961.  The committee is hereby authorized and empowered to create a
debt or debts, liability or liabilities, of the State of California,
in the aggregate amount of three hundred seventy-five million
dollars (5,000,000), in the manner provided in this chapter.  Such
debt or debts, liability or liabilities, shall be created for the
purpose of providing the fund to be used for the object and work
specified in Section 13962.



13962.  (a) The moneys in the fund shall be used for the purposes
set forth in this section.
   (b) The board is authorized to enter into contracts with
municipalities having authority to construct, operate and maintain
treatment works, for grants to such municipalities to aid in the
construction of eligible projects.
   Grants may be made pursuant to this section to reimburse
municipalities for the state share of construction costs for eligible
projects which received federal assistance but which did not receive
an appropriate state grant due solely to depletion of the fund
created pursuant to the Clean Water Bond Law of 1974; provided,
however, that eligibility for reimbursement under this section is
limited to the actual construction capital costs incurred.
   Any contract pursuant to this section may include such provisions
as may be agreed upon by the parties thereto, and any such contract
concerning an eligible project shall include, in substance, the
following provisions:
   (1) An estimate of the reasonable cost of the eligible project;
   (2) An agreement by the board to pay to the municipality, during
the progress of constuction or following completion of construction
as may be agreed upon by the parties, an amount which equals at least
121/2 percent of the eligible project cost determined pursuant to
federal and state laws and regulations;
   (3) An agreement by the municipality, (i) to proceed expeditiously
with, and complete, the eligible project, (ii) to commence operation
of the treatment works on completion thereof, and to properly
operate and maintain such works in accordance with applicable
provisions of law, (iii) to apply for and make reasonable efforts to
secure federal assistance for the eligible project, (iv) to secure
the approval of the board before applying for federal assistance in
order to maximize the amounts of such assistance received or to be
received for all eligible projects in the state, and (v) to provide
for payment of the municipality's share of the cost of the eligible
project.
   (c) In addition to the powers set forth in subdivision (b) of this
section, the board is authorized to enter into contracts with
municipalities for grants for eligible state assisted projects.
   Any contract for an eligible state assisted project pursuant to
this section may include such provisions as may be agreed upon by the
parties thereto, provided, however, that the amount of moneys which
may be granted or otherwise committed to municipalities for such
projects shall not exceed fifty million dollars (,000,000) in the
aggregate.
   Any contract concerning an eligible state assisted project shall
include, in substance, the following provisions:
   (1) An estimate of the reasonable cost of the eligible state
assisted project;
   (2) An agreement by the board to pay to the municipality, during
the progress of construction or following completion of construction,
as may be agreed upon by the parties, an amount which at least
equals the local share of the cost of construction of such projects
as determined pursuant to applicable federal and state laws and
regulations;
   (3) An agreement by the municipality (i) to proceed expeditiously
with, and complete, such project, (ii) to commence operation of such
project on completion thereof, and to properly operate and maintain
such project in accordance with applicable provisions of law, (iii)
to provide for payment of the municipality's share of the cost of
such project (iv) if appropriate, to apply for and make reasonable
efforts to secure federal assistance, other than that available
pursuant to Title II of the Federal Water Pollution Control Act, for
such project and to secure the approval of the board before applying
for federal assistance in order to maximize the amounts of such
assistance received or to be received for all eligible state assisted
projects.
   (d) The board may make direct grants to any municipality or by
contract or otherwise undertake plans, surveys, research, development
and studies necessary, convenient or desirable to the effectuation
of the purposes and powers of the board pursuant to this division and
to prepare recommendations with regard thereto, including the
preparation of comprehensive statewide or areawide studies and
reports on the collection, treatment and disposal of waste under a
comprehensive cooperative plan.
   (e) The board may from time to time with the approval of the
committee transfer moneys in the fund to the State Water Quality
Control Fund to be available for loans to public agencies pursuant to
Chapter 6 (commencing with Section 13400) of this division.
   (f) As much of the moneys in the fund as is necessary shall be
used to reimburse the General Obiligation Bond Expense Revolving Fund
pursuant to Section 16724.  5 of the Government Code.
   (g) The board may adopt rules and regulations governing the making
and enforcing of contracts pursuant to this section.



13963.  All bonds herein authorized, which shall have been duly sold
and delivered as herein provided, shall constitute valid and legally
binding general obligations of the State of California, and the full
faith and credit of the State of California is hereby pledged for
the punctual payment of both principal and interest thereon.
   There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the state, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collection of said revenue, to do and perform each
and every act which shall be necessary to collect said additional
sum.
   All money deposited in the fund which has been derived from
premium and accrued interest on bonds sold shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.


13964.  All money deposited in the fund pursuant to any provision of
law requiring repayments to the state for assistance financed by the
proceeds of the bonds authorized by this chapter shall be available
for transfer to the General Fund.  When transferred to the General
Fund such money shall be applied as a reimbursement to the General
Fund on account of principal and interest on the bonds which has been
paid from the General Fund.



13965.  There is hereby appropriated from the General Fund in the
State Treasury for the purpose of this chapter such an amount as will
equal the following:
   (a) Such sum annually as will be necessary to pay the principal of
and the interest on the bonds issued and sold pursuant to the
provisions of this chapter, as said principal and interest become due
and payable.
   (b) Such sum as is necessary to carry out the provisions of
Section 13966, which sum is appropriated without regard to fiscal
years.



13966.  For the purpose of carrying out the provisions of this
chapter, the Director of Finance may by executive order authorize the
withdrawal from the General Fund of an amount or amounts not to
exceed the amount of the unsold bonds which the committee has by
resolution authorized to be sold for the purpose of carrying out this
chapter.  Any amounts withdrawn shall be deposited in the fund and
shall be disbursed by the board in accordance with this chapter.  Any
moneys made available under this section to the board shall be
returned by the board to the General Fund from moneys received from
the sale of bonds sold for the purpose of carrying out this chapter.




13966.5.  Notwithstanding any other provision of this bond act, or
of the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), if the Treasurer sells bonds pursuant to this bond act that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes under
designated conditions, the Treasurer may maintain separate accounts
for the bond proceeds invested and the investment earnings on those
proceeds, and may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law, or take any other action with respect to the investment and use
of those bond proceeds, as may be required or desirable under federal
law in order to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds
of this state.



13967.  Upon request of the board, supported by a statement of the
proposed arrangements to be made pursuant to Section 13962 for the
purpose therein stated, the committee shall determine whether or not
it is necessary or desirable to issue any bonds authorized under this
chapter in order to make such arrangements, and if so, the amount of
bonds then to be issued and sold. Successive issues of bonds may be
authorized and sold to make such arrangements progressively, and it
shall not be necessary that all of the bonds herein authorized to be
issued shall be sold at any one time.



13968.  The committee may authorize the State Treasurer to sell all
or any part of the bonds herein authorized at such time or times as
may be fixed by the State Treasurer.



13969.  All proceeds from the sale of bonds, except those derived
from premiums and accrued interest, shall be available for the
purpose provided in Section 13962 but shall not be available for
transfer to the General Fund to pay principal and interest on bonds.
The money in the fund may be expended only as herein provided.