2007 California Water Code Chapter 15. Clean Water Bond Law Of 1984

CA Codes (wat:13999-13999.19)

13999.  This chapter shall be known and may be cited as the Clean
Water Bond Law of 1984.



13999.1.  The Legislature finds and declares as follows:
   (a) Clean water is essential to the public health, safety, and
welfare.
   (b) Clean water fosters the beauty of California's environment,
the expansion of industry and agriculture, maintains fish and
wildlife, and supports recreation.
   (c) California's abundant lakes and ponds, streams and rivers,
coastline, and groundwater are threatened with pollution, which could
threaten public health and impede economic and social growth if left
unchecked.
   (d) The state's growing population has increasing needs for clean
water supplies and adequate treatment facilities.
   (e) It is of paramount importance that the limited water resources
of the state be protected from pollution, conserved, and reclaimed
whenever possible to ensure continued economic, community, and social
growth.
   (f) The chief cause of water pollution is the discharge of
inadequately treated waste into the waters of the state.
   (g) Local agencies have the primary responsibility for
construction, operation, and maintenance of facilities to cleanse our
waters.
   (h) Rising costs of construction and technological changes have
pushed the cost of constructing treatment facilities beyond the reach
of local agencies alone.
   (i) Because water knows no political boundaries, it is desirable
for the state to contribute to construction of these facilities in
order to meet its obligations to protect and promote the health,
safety, and welfare of its people and environment.
   (j) Voluntary, cost-effective capital outlay water conservation
programs can help meet the growing demand for clean water supplies.
   (k) (1) It is the intent of this chapter to provide necessary
funds to ensure the full participation by the state under the federal
Clean Water Act (33 U.S.C.  Sec. 1251 et seq.) and any acts
amendatory thereof or supplementary thereto.
   (2) It is also the intent of this chapter to provide special
assistance to small communities to construct facilities necessary to
eliminate water pollution and public health hazards.
   (3) It is the further intent of this chapter to provide funds for
state participation in the financing of the development and
implementation of programs and systems for water reclamation.
   (4) It is the further intent of this chapter to provide funds for
voluntary, cost-effective capital outlay water conservation programs
cooperatively carried out by public agencies and the department.




13999.2.  As used in this chapter, and for purposes of this chapter
as used in 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), the following words shall have the following
meanings:
   (a) "Committee" means the Clean Water Finance Committee created by
Section 13999.4.
   (b) "Board" means the State Water Resources Control Board.
   (c) "Fund" means the 1984 State Clean Water Bond Fund.
   (d) "Municipality" shall have the same meaning as in the federal
Clean Water Act (33 U.S.C. Sec. 1251 et seq.) 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 Clean Water Act (33 U.S.C. Sec. 1251 et seq.).
   (f) "Construction" shall have the same meaning as in the federal
Clean Water Act (33 U.S.C. Sec. 1251 et seq.).
   (g) "Eligible project" means a project for the construction of
treatment works which is all of the following:
   (1) Necessary to prevent water pollution.
   (2) Eligible for federal assistance, whether or not federal funds
are then available.
   (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 water reclamation project" means a water reclamation
project which is cost-effective when compared to the development of
other new sources of water, and for which no federal assistance is
currently available. These projects or activities shall comply with
applicable water quality 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 to construct treatment works pursuant to the federal Clean
Water Act.
   (j) "Small community" means a municipality with a population of
5,000 persons or less, or a reasonably isolated and divisible segment
of a larger municipality encompassing 5,000 persons or less, with a
financial hardship as defined by the board.
   (k) "Supplemental state assistance" means a grant given to a
qualifying small community, in addition to the normal federal and
state contributions, to reduce the local share of a project.
   (l) "Federal Clean Water Act" means the existing federal Clean
Water Act (33 U.S.C. Sec. 1251 et seq.) and any acts amendatory
thereof or supplementary thereto.
   (m) "Voluntary, cost-effective capital outlay water conservation
programs" mean those feasible capital outlay measures to improve the
efficiency of water use through benefits which exceed their costs.
The programs include, but are not limited to, leak detection and
repair within the water distribution and consumption system,
distribution and installation of new and replacement water conserving
fixtures and devices, valve repair and replacement, meter
calibration and replacement, physical improvements to achieve
corrosion control, irrigation system improvements to reduce leakage
which results in the loss of otherwise usable water, tailwater
pumpback recovery systems, construction of small reservoirs within
irrigation systems which conserve water which has already been
captured for irrigation use, and other physical improvements to
irrigation systems.  In each case, the department shall determine
that there is a net savings of water as a result of each proposed
project and that the project is cost-effective.
   (n) "Department" means the Department of Water Resources.




13999.3.  (a) There is in the State Treasury the 1984 State Clean
Water Bond Fund, which fund is hereby created.  There shall be
established in the fund a Clean Water Construction Grant Account for
the purpose of implementing Section 13999.8, a Small Communities
Assistance Account for the purpose of implementing Section 13999.9, a
Water Reclamation Account for the purpose of implementing Section
13999.10 and a Water Conservation Account for the purpose of
implementing Section 13999.11.
   (b) From time to time, the board may modify existing accounts in
the fund, or may establish other accounts in the fund, and in all
other bond funds administered by the board, which the board
determines are appropriate or necessary for proper administration.



13999.4.  There shall be a Clean Water Finance Committee consisting
of the Governor or his designated representative, the Controller, the
Treasurer, the Director of Finance, and the Executive Director of
the State Water Resources Control Board.  The Clean Water Finance
Committee shall be the "committee" as that term is used in the State
General Obligation Bond Law.



13999.5.  (a) 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 twenty-five
million dollars (5,000,000), in the manner provided in this
chapter.  The 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 this section and in Sections 13999.6,
13999.8, 13999.9, 13999.10, 13999.11, and 13999.14.
   (b) The board is authorized to enter into contracts with
municipalities having authority to construct, operate, and maintain
treatment works and reclamation projects, for grants and loans to the
municipalities to aid in the construction of eligible projects and
eligible water reclamation projects and may adopt rules and
regulations necessary to carry out the provisions of this chapter.
   (c) As approved by the Legislature annually in the Budget Act, the
board may, by contract or otherwise, undertake plans, surveys,
research, development, and studies necessary, convenient, or
desirable to carry out the purposes of this division, and may 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.
   (d) As approved by the Legislature annually in the Budget Act, the
board may expend bond funds necessary for administration of this
chapter.
   (e) Not more than 5 percent of the total amount of the bonds
authorized to be issued under this chapter may be used for purposes
of subdivisions (c) and (d).
   (f) As approved by the Legislature annually in the Budget Act, the
department may direct grants and loans to any public agency or, by
contract or otherwise, undertake plans, surveys, research,
development, and studies necessary, convenient, or desirable to carry
out voluntary, cost-effective capital outlay water conservation
programs.
   (g) The board may expend funds necessary to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of
the Government Code.



13999.6.  All bonds which have been duly sold and delivered
constitute valid and legally binding general obligations of the State
of California, and the full faith and credit of the State of
California is pledged for the punctual payment of both principal and
interest.
   There shall be collected annually in the same manner, and at the
same time as other state revenue is collected, the sum, in addition
to the ordinary revenues of the state, required to pay the principal
and interest on the bonds.  It is the duty of all officers charged by
law with any duty in regard to the collection of that revenue to
perform each and every act which is necessary to collect this
additional sum.
   All money deposited in the fund which has been derived from
premium and accrued interest on bonds sold is available for transfer
to the General Fund as a credit to expenditures for bond interest.




13999.7.  The State General Obligation Bond Law is adopted for the
purpose of the issuance, sale, and repayment of, and other matters
with respect to, the bonds authorized by this chapter.  The
provisions of that law are included in this chapter as though set out
in full in this chapter, except that, notwithstanding any provision
in the State General Obligation Bond Law, the bonds authorized under
this chapter shall bear the rates of interest, or maximum rates,
fixed from time to time by the Treasurer with the approval of the
committee.  The maximum maturity of the bonds shall not exceed 50
years from the date of the bonds or from the date of each respective
series.  The maturity of each respective series shall be calculated
from the date of the series.



13999.8.  (a) The sum of two hundred fifty million dollars
(0,000,000) of the moneys in the fund shall be deposited in the
Clean Water Construction Grant Account and is appropriated for grants
and loans to municipalities to aid in construction of eligible
projects and the purposes set forth in this section.
   (b) If the federal Clean Water Act authorizes a federal loan
program for providing assistance for construction of treatment works,
which requires state matching funds, the board may establish a State
Water Pollution Control Revolving Fund to provide loans in
accordance with the federal Clean Water Act. The board, with the
approval of the committee, may transfer funds from the Clean Water
Construction Grant Account to the revolving fund for the purposes of
meeting federal requirements for state matching funds.
   (c) Any contract entered into pursuant to this section may include
any provisions that the board determines, provided that any contract
concerning an eligible project shall include, in substance, all of
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 construction or following completion of construction
as agreed upon by the parties, an amount that 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 to proceed expeditiously
with, and complete, the eligible project; commence operation of the
treatment works upon completion and to properly operate and maintain
the works in accordance with applicable provisions of law; apply for
and make reasonable efforts to secure federal assistance for the
eligible project; secure the approval of the board before applying
for federal assistance in order to maximize the assistance received
in the state; and provide for payment of the municipality's share of
the cost of the eligible project.
   (d) The board may, with the approval of the committee, transfer
moneys in the Clean Water Construction Grant Account to the State
Water Quality Control Fund, to be made available for loans to public
agencies pursuant to Chapter 6 (commencing with Section 13400).
   (e) Grants may be made pursuant to this section to reimburse
municipalities for the state share of construction costs for eligible
projects that received federal assistance, but that did not receive
an appropriate state grant due solely to depletion of the State Clean
Water and Water Conservation Fund created pursuant to the Clean
Water and Water Conservation Bond Law of 1978 (Chapter 12.5
(commencing with Section 13955)). Eligibility for reimbursement under
this section is limited to the actual construction capital costs
incurred.
   (f) To the extent funds are available, if the federal share of
construction funding under Title II of the federal Clean Water Act is
reduced below 75 percent, municipalities otherwise eligible for a
grant under this section shall also be entitled to a loan from the
Clean Water Construction Grant Account of up to 121/2 percent of the
eligible project cost.
   (g) To the extent funds are available, if the federal Clean Water
Act authorizes a federal loan program for providing assistance for
construction of treatment works, the board may make those loans in
accordance with the federal Clean Water Act and state law. The
Legislature may enact legislation that it deems necessary to
implement the state loan program.
   (h) Notwithstanding any other provision of law, and to the extent
funds are available, if federal funding under Title II of the federal
Clean Water Act ceases, municipalities shall only be entitled to a
loan from the Clean Water Construction Grant Account of 25 percent of
the eligible project cost.
   (i) All loans pursuant to this section are subject to all of the
following provisions:
   (1) Municipalities seeking a loan shall demonstrate, to the
satisfaction of the board, that an adequate opportunity for public
participation regarding the loan has been provided.
   (2) Any election held with respect to the loan shall include the
entire municipality except where the municipality proposes to accept
the loan on behalf of a specified portion, or portions, of the
municipality, in which case the referendum shall be held in that
portion or portions of the municipality only.
   (3) Any loan made pursuant to this section shall be up to 25 years
with an interest rate set annually by the board at 50 percent of the
average interest rate paid by the state on general obligation bonds
for the calendar year immediately preceding the year in which the
loan agreement is executed.
   (4) The first thirty million dollars (,000,000) in principal
and interest from loans made pursuant to this section shall be paid
to the Water Reclamation Account. All remaining principal and
interest from the loans shall be returned to the Clean Water
Construction Grant Account for new obligations.



13999.9.  (a) The sum of forty million dollars (,000,000) of the
money in the fund shall be deposited in the Small Communities
Assistance Account and is appropriated for supplemental state
assistance to small communities for construction of treatment works
eligible for assistance under Title II of the federal Clean Water
Act.
   (b) Notwithstanding subdivision (c) of Section 13999.5, the board
may make grants to small communities so that the combined federal and
state grant is an amount up to 971/2 percent of pollution studies,
the total estimated cost  of planning, design, and construction
determined in accordance with applicable state laws and regulations.
No supplemental state assistance grant under this section shall be
made for projects costing more than two million five hundred thousand
dollars (,500,000) unless a finding is made by the board that a
higher cost project is the most cost-effective solution to a water
quality or public health problem.
   (c) Any contract entered into pursuant to this section may include
such provisions as may be determined by the board, provided that any
contract shall include the provisions required by paragraphs (1) and
(3) of subdivision (c) of Section 13999.8.



13999.10.  (a) The sum of twenty-five million dollars (,000,000)
of the money in the  fund shall be deposited in the Water Reclamation
Account and is appropriated for loans to municipalities for eligible
water reclamation projects which will provide water for beneficial
uses.
   The board may loan a municipality up to 100 percent of the total
eligible costs of design and construction of a reclamation project.
   (b) Any contract for an eligible water reclamation project entered
into pursuant to this section may include such provisions as
determined by the board and shall include both of the following
provisions:
   (1) An estimate of the reasonable cost of the eligible water
reclamation project.
   (2) An agreement by the municipality to proceed expeditiously
with, and complete, the eligible water reclamation project; commence
operation of the project in accordance with applicable provisions of
law; provide for payment of the municipality's share of the cost of
the project, including principal and interest on any state loan made
pursuant to this section; and, if appropriate, apply for and make
reasonable efforts to secure federal assistance, other than that
available pursuant to the federal Clean Water Act, for the
state-assisted project.
   (c) Loan contracts may not provide for a moratorium on payments of
principal or interest.
   (d) (1) Any loans made from the Water Reclamation Account shall be
for a period of up to 25 years .  The interest rate for the loans
shall be 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, with that rate to be computed according to the true interest
cost method.  When the interest rate so determined is not a multiple
of one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of 1 percent.
   (2) All principal and interest from loans shall be returned to the
Water Reclamation Account for new loans.
   (e) Funds available under this section may be used for loans
pursuant to subdivisions (f), (g), and (h) of Section 13999.8 if the
Clean Water Construction Grant Account is depleted.  All principal
and interest on any such loans shall be repaid to the Water
Reclamation Account.
   (f) No single project may receive more than ten million dollars
(,000,000) from the board.


13999.11.  (a) Ten million dollars (,000,000) of the money in the
fund shall be deposited in the Water Conservation Account and shall
be available for appropriation by the Legislature for loans to
municipalities to aid in the conduct of voluntary, cost-effective
capital outlay water conservation programs and the purposes set forth
in this section.  Notwithstanding subdivision (e) of Section 13999.5
and subdivision (f) of this section, all of the funds deposited in
the Water Conservation Account by this subdivision shall be available
for water conservation programs.  None of the funds deposited in the
Water Conservation Account by this subdivision shall be expended for
costs of administration.
   (b) Any contract entered into pursuant to this section may include
provisions as may be determined by the department.  However, any
contract concerning an eligible, voluntary, cost-effective capital
outlay water conservation program shall include, in substance, all of
the following:
   (1) An estimate of the reasonable cost and benefit of the program.

   (2) An agreement by the public agency to proceed expeditiously
with, and complete, the program.
   (c) Loan contracts may not provide a moratorium on payments of
principal or interest.
   (d) Any loans made from the Water Conservation Account shall be
for a period of up to 25 years with an interest rate set annually by
the board at 50 percent of the average interest rate paid by the
state on general obligation bonds in the calendar year immediately
preceding the year in which the loan agreement is executed.  All
principal and interest from loans shall be deposited in the Water
Conservation Account for new obligations.
   (e) No single project may receive more than five million dollars
(,000,000) from the department.
   (f) As approved by the Legislature annually in the Budget Act, the
department may expend up to 5 percent of the funds in the Water
Conservation Account for the administration of this section.




13999.12.  Except as expressly provided in this chapter, no 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.



13999.13.  There is hereby appropriated from the General Fund in the
State Treasury for the purpose of this chapter an amount equal to
the sum of the following:
   (1) The sum necessary annually to pay the principal of and the
interest on the bonds issued and sold pursuant to this chapter, as
the principal and interest become due and payable.
   (2) The sum necessary to carry out Section 13999.14  which is
appropriated without regard to fiscal years.



13999.14.  For the purpose of carrying out 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 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 money made available
under this section to the board or department shall be returned to
the General Fund from money received from the sale of bonds.  The
withdrawals from the General Fund shall be returned to the General
Fund with interest at the rate which would have otherwise been earned
by those sums in the Pooled Money Investment Fund.



13999.15.  Upon request of the board or department, the committee
shall determine whether or not it is necessary or desirable to issue
bonds authorized under this chapter in order to make those
arrangements, and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to make those
arrangements progressively, and it shall not be necessary that all of
the bonds authorized to be issued shall be sold at any one time.



13999.16.  The committee may authorize the Treasurer to sell all or
any part of the bonds at times fixed by the Treasurer.



13999.17.  (a) Notwithstanding any other provision of this chapter
and to the extent permitted by federal and state law, the money in
the fund may be used to rebate to the federal government all
arbitrage profits required by the Federal Tax Reform Act of 1986 or
any amendment thereof or supplement thereto. To the extent that the
money in the fund may not be used for that purpose due to restraints
of federal or state law, any rebates required shall be paid from the
General Fund or from other sources as required by the Legislature.
   (b) Notwithstanding any other provision of law, rule, or
regulation, the board may enter into contracts, or procure those
services and equipment, which may be necessary to ensure prompt and
complete compliance with any provisions relating to the fund imposed
by either the Federal Tax Reform Act of 1986 or the federal act.



13999.17.  (a) Notwithstanding any other provision of this chapter
and to the extent permitted by federal and state law, the money in
the fund may be used to rebate to the federal government all
arbitrage profits required by the Federal Tax Reform Act of 1986 or
any amendment thereof or supplement thereto. To the extent that the
money in the fund may not be used for that purpose due to restraints
of federal or state law, any rebates required shall be paid from the
General Fund or from other sources as required by the Legislature.
   (b) Notwithstanding any other provision of law, or rule or
regulation, the board may enter into contracts, or procure those
services and equipment, which may be necessary to ensure prompt and
complete compliance with any provisions relating to the fund imposed
by either the Federal Tax Reform Act of 1986 or the federal act.



13999.18.  Notwithstanding any other provision of this chapter, and
as approved by the Legislature, the board may share in the cost of
the construction of treatment works under subdivision (b) of Section
510 of the Federal Water Quality Act of 1987.  That participation may
be approved only if the board determines that treatment works in
Mexico, in conjunction with any defensive treatment works constructed
under the Federal Water Pollution Control Act, are not sufficient to
protect the residents of the City of San Diego and surrounding
areas, including Imperial County, from water pollution originating in
Mexico.  No project in which the board participates shall receive
more than ten million dollars (,000,000) in loan proceeds from the
board.



13999.19.  Notwithstanding Section 13999.17 or 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.