This chapter shall be known and may be cited as the Clean Water Bond Law of 1984.
Chapter 15Clean Water Bond Law of 1984
Section § 13999
This law is titled the Clean Water Bond Law of 1984, and it can be referred to by this name.
Clean Water Bond 1984 water quality environmental funding water projects California water legislation water infrastructure bond act state water resources public financing water conservation environmental protection state bonds water supply California environment
Section § 13999.1
This law highlights the importance of clean water for public health, environmental beauty, industrial growth, agriculture, wildlife, and recreation in California. It addresses the threat of pollution to water resources such as lakes, rivers, and groundwater, which could harm public health and economic growth if unchecked.
Local agencies mainly handle the construction and maintenance of water treatment facilities, but they often lack the funds due to high construction costs. The state acknowledges its role in helping to construct these facilities and emphasizes the need for water conservation programs.
The law aims to ensure California's participation in federal clean water initiatives and intends to financially assist small communities and support water reclamation efforts and cost-effective, voluntary water conservation programs.
The Legislature finds and declares as follows:
(a)CA Water Code § 13999.1(a) Clean water is essential to the public health, safety, and welfare.
(b)CA Water Code § 13999.1(b) Clean water fosters the beauty of California’s environment, the expansion of industry and agriculture, maintains fish and wildlife, and supports recreation.
(c)CA Water Code § 13999.1(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)CA Water Code § 13999.1(d) The state’s growing population has increasing needs for clean water supplies and adequate treatment facilities.
(e)CA Water Code § 13999.1(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)CA Water Code § 13999.1(f) The chief cause of water pollution is the discharge of inadequately treated waste into the waters of the state.
(g)CA Water Code § 13999.1(g) Local agencies have the primary responsibility for construction, operation, and maintenance of facilities to cleanse our waters.
(h)CA Water Code § 13999.1(h) Rising costs of construction and technological changes have pushed the cost of constructing treatment facilities beyond the reach of local agencies alone.
(i)CA Water Code § 13999.1(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)CA Water Code § 13999.1(j) Voluntary, cost-effective capital outlay water conservation programs can help meet the growing demand for clean water supplies.
(k)Copy CA Water Code § 13999.1(k)
(1)Copy CA Water Code § 13999.1(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)CA Water Code § 13999.1(k)(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)CA Water Code § 13999.1(k)(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)CA Water Code § 13999.1(k)(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.
clean water public health pollution threat local agencies treatment facilities water conservation programs water reclamation small community assistance water pollution solutions federal Clean Water Act cost-effective programs economic growth environment protection state funding participation technological change in construction
Section § 13999.10
This law allocates $25 million for loans to municipalities for water reclamation projects that will help provide water for beneficial uses. Municipalities can receive loans covering up to 100% of eligible design and construction costs. The loan agreements must include an estimated project cost and a commitment to complete the project swiftly, follow all legal requirements, cover their share of the costs, and seek federal assistance where possible.
Loan terms can be up to 25 years with interest rates at half of what the state pays on its most recent bonds. Repayments are directed back into the fund for future loans. Additionally, if other related funds are exhausted, this money may support those purposes too. No single water reclamation project can receive more than $10 million in loans from this fund.
(a)CA Water Code § 13999.10(a) The sum of twenty-five million dollars ($25,000,000) 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)CA Water Code § 13999.10(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)CA Water Code § 13999.10(b)(1) An estimate of the reasonable cost of the eligible water reclamation project.
(2)CA Water Code § 13999.10(b)(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)CA Water Code § 13999.10(c) Loan contracts may not provide for a moratorium on payments of principal or interest.
(d)Copy CA Water Code § 13999.10(d)
(1)Copy CA Water Code § 13999.10(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)CA Water Code § 13999.10(d)(2) All principal and interest from loans shall be returned to the Water Reclamation Account for new loans.
(e)CA Water Code § 13999.10(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)CA Water Code § 13999.10(f) No single project may receive more than ten million dollars ($10,000,000) from the board.
water reclamation projects municipal loans eligible project costs beneficial water uses interest rates state general obligation bonds federal assistance principal and interest repayment loan contract terms project funding limits Clean Water Construction Grant Account municipality funding obligations state loan provisions project cost estimation federal assistance pursuit
Section § 13999.11
This California Water Code section allocates $10 million for loans to help cities with water conservation programs. These loans are only for actual conservation projects—not for administrative costs. Each loan must lay out the project's estimated costs and benefits and include an agreement to finish the project quickly. Loans can't have a delay in payments and are capped at 25 years with a reduced interest rate. A single project can't receive more than $5 million. The state may spend up to 5% of the funds on managing the program, as long as the Legislature approves this use of funds annually.
(a)CA Water Code § 13999.11(a) Ten million dollars ($10,000,000) 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)CA Water Code § 13999.11(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)CA Water Code § 13999.11(b)(1) An estimate of the reasonable cost and benefit of the program.
(2)CA Water Code § 13999.11(b)(2) An agreement by the public agency to proceed expeditiously with, and complete, the program.
(c)CA Water Code § 13999.11(c) Loan contracts may not provide a moratorium on payments of principal or interest.
(d)CA Water Code § 13999.11(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)CA Water Code § 13999.11(e) No single project may receive more than five million dollars ($5,000,000) from the department.
(f)CA Water Code § 13999.11(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.
water conservation municipal loans capital outlay programs voluntary projects cost-effective measures interest rate loan term project funding cap administrative costs Legislative appropriation Water Conservation Account fund allocation principal and interest state bonds budget act approval
Section § 13999.12
This law says that, unless there's a specific rule in this chapter that says otherwise, money paid back to the state for certain state-funded assistance projects can't be moved to the state's General Fund. This money comes from bonds approved by this chapter.
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.
repayments to the state assistance financed by bonds bond proceeds General Fund transfer restriction state assistance repayment financial management fund transfer limitations bond-funded projects state-funded assistance restricted fund transfers
Section § 13999.13
This law allows the State of California to use money from the General Fund to pay for two things. First, it covers the cost of paying back bonds, which includes both the original amount and any interest. This payment happens as the bonds are due. Second, it provides funds needed to carry out the actions described in another section, 13999.14, at any time without worrying about the budget year.
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)CA Water Code § 13999.13(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)CA Water Code § 13999.13(2) The sum necessary to carry out Section 13999.14 which is appropriated without regard to fiscal years.
General Fund bond payments interest payments principal payments state treasury fiscal years appropriations bond issuance public finance Section 13999.14 state budgeting debt service funding allocation
Section § 13999.14
This section allows the Director of Finance to authorize money to be taken from the General Fund up to the amount of unsold bonds, as approved by the committee, to help implement the chapter's goals. The funds taken out must be put into a designated fund and used as per the chapter's directives. Any money made available through this process must be repaid to the General Fund once bond sales bring in revenue. This repayment also includes interest, calculated at a rate that the funds would have earned if they had remained in the state's Pooled Money Investment Fund.
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.
Director of Finance authority General Fund withdrawal unsold bonds fund disbursement bond sales repayment with interest Pooled Money Investment Fund interest rate executive order fund allocation debt management financial administration California bonds state financial management chapter goals implementation
Section § 13999.15
This law says that when asked by the board or department, a committee needs to decide if it's necessary or beneficial to issue bonds for certain purposes. If bonds are needed, the committee also decides how much should be sold. The bonds can be issued and sold in stages, meaning they don't all have to be sold at once.
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.
bonds issuance committee decision board request department request successive bond issues bond sales progressive arrangements necessary bonds desirable bonds amount of bonds staged bond issuance financial arrangements public funding bond authorization capital financing
Section § 13999.16
This law section allows a committee to give the Treasurer the power to sell bonds. The Treasurer decides when to sell them.
The committee may authorize the Treasurer to sell all or any part of the bonds at times fixed by the Treasurer.
committee authorization Treasurer bond sales sell bonds financial authority bond timing sale of bonds treasury management financial decision bond authorization finance committee public bonds bond issuance bond market timing of bond sales
Section § 13999.17
This law allows the funds to be used to pay back profits to the federal government as required by the Federal Tax Reform Act of 1986. If these funds can't cover this, the state will use other sources like the General Fund. The board can also make necessary contracts or acquire services and equipment to ensure they follow these federal rules promptly and completely.
(a)CA Water Code § 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)CA Water Code § 13999.17(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.
arbitrage profits Federal Tax Reform Act of 1986 rebate to federal government General Fund fund compliance contracts for compliance Federal Tax Act amendments fund usage state law restraints legislature funding requirements
Section § 13999.18
This law allows a California board to help pay for building water treatment systems, with approval from the Legislature. The board can contribute only if water treatment systems in Mexico aren’t enough to protect San Diego and nearby areas from pollution coming from Mexico. Any project the board aids can't get more than $10 million in loans from the board.
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 ($10,000,000) in loan proceeds from the board.
water pollution treatment works San Diego Imperial County Mexico Federal Water Quality Act construction cost sharing water quality protection loan limit legislative approval cross-border pollution environmental safeguards Federal Water Pollution Control Act defensive treatment works residents protection
Section § 13999.19
This section allows the California Treasurer to manage the funds from bonds they sell, in a way that keeps the interest on these bonds nontaxable at the federal level. The Treasurer can set up separate accounts for the money made from these bonds and its earnings. They can use this money to pay any fees or penalties needed to comply with federal law and maintain the bonds’ tax-exempt status, or take other steps to benefit the state's finances under federal law.
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.
bond proceeds federal tax exemption tax-exempt bonds separate accounts investment earnings Treasurer federal law compliance tax-exempt status bond counsel opinion investment funds management federal law rebate penalty payments state financial advantages nontaxable interest state bond management
Section § 13999.2
This section provides definitions for several key terms used in the chapter related to the Clean Water Finance Committee and projects under the State Clean Water Bond Fund. It defines terms like "Committee" as the Clean Water Finance Committee, "Board" as the State Water Resources Control Board, and "Fund" as the 1984 State Clean Water Bond Fund. "Municipality" includes entities defined by the federal Clean Water Act, as well as state entities and subdivisions. "Eligible project" refers to necessary projects for preventing water pollution and obtaining federal assistance, certified by the Board for priority. "Eligible water reclamation project" is a cost-effective alternative to new water sources without federal assistance available. Additional definitions cover federal assistance parameters, definitions of "small community," supplemental state assistance, and specific conservation programs. The "Department" is defined as the Department of Water Resources.
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)CA Water Code § 13999.2(a) “Committee” means the Clean Water Finance Committee created by Section 13999.4.
(b)CA Water Code § 13999.2(b) “Board” means the State Water Resources Control Board.
(c)CA Water Code § 13999.2(c) “Fund” means the 1984 State Clean Water Bond Fund.
(d)CA Water Code § 13999.2(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)CA Water Code § 13999.2(e) “Treatment works” shall have the same meaning as in the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.).
(f)CA Water Code § 13999.2(f) “Construction” shall have the same meaning as in the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.).
(g)CA Water Code § 13999.2(g) “Eligible project” means a project for the construction of treatment works which is all of the following:
(1)CA Water Code § 13999.2(g)(1) Necessary to prevent water pollution.
(2)CA Water Code § 13999.2(g)(2) Eligible for federal assistance, whether or not federal funds are then available.
(3)CA Water Code § 13999.2(g)(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(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)CA Water Code § 13999.2(n) “Department” means the Department of Water Resources.
Clean Water Finance Committee State Water Resources Control Board 1984 State Clean Water Bond Fund municipality treatment works construction eligible project water pollution prevention water reclamation project federal assistance small community supplemental state assistance cost-effective water conservation Department of Water Resources federal Clean Water Act
Section § 13999.3
This section creates the 1984 State Clean Water Bond Fund within the California State Treasury. It establishes several specific accounts under this fund: a Clean Water Construction Grant Account, a Small Communities Assistance Account, a Water Reclamation Account, and a Water Conservation Account. These accounts are each designated to implement certain other sections noted in the law.
The board in charge has the authority to modify these accounts or create new ones as needed to ensure proper fund management and administration. This flexibility allows the board to respond to changing needs and circumstances regarding water-related projects and programs.
(a)CA Water Code § 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)CA Water Code § 13999.3(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.
1984 State Clean Water Bond Fund Clean Water Construction Grant Account Small Communities Assistance Account Water Reclamation Account Water Conservation Account State Treasury fund management account modification bond funds water projects funding board authority program implementation water conservation small community assistance water reclamation
Section § 13999.4
This law sets up the Clean Water Finance Committee, which includes the Governor or a representative, the Controller, the Treasurer, the Director of Finance, and the Executive Director of the State Water Resources Control Board. This group acts as the 'committee' for the State General Obligation Bond Law.
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.
Clean Water Finance Committee Governor Controller Treasurer Director of Finance Executive Director State Water Resources Control Board State General Obligation Bond Law committee composition water resources finance government representatives
Section § 13999.5
This law allows a committee to create a debt for California up to $325 million to fund specific projects. The board can make agreements with cities to provide grants and loans for water treatment and reclamation projects. Annually approved by the Legislature, the board and department can also conduct studies and create plans for managing waste and conserving water, using bond funds within specified limits. Finally, some funds can reimburse expenses related to bonds.
(a)CA Water Code § 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 ($325,000,000), 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)CA Water Code § 13999.5(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)CA Water Code § 13999.5(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)CA Water Code § 13999.5(d) As approved by the Legislature annually in the Budget Act, the board may expend bond funds necessary for administration of this chapter.
(e)CA Water Code § 13999.5(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)CA Water Code § 13999.5(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)CA Water Code § 13999.5(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.
debt creation municipal contracts treatment works reclamation projects eligible projects grant funding loan funding water conservation programs bond fund administration General Obligation Bond reimbursement waste treatment statewide studies capital outlay water conservation comprehensive cooperative plan
Section § 13999.6
This section explains that when California sells bonds, they become legally binding obligations, meaning the state is fully responsible for paying back the principal and interest on time. The state promises to use its full financial power to ensure these payments are made.
To cover these payments, California will collect the necessary funds annually along with their regular state revenues. Officials responsible for collecting state revenue must ensure they also collect enough to cover these bond payments.
Any money earned from the sale of bonds, like from premiums or interest accrued before they were sold, can be moved to the state's General Fund to help pay the interest on these bonds.
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.
California bonds general obligations full faith and credit principal and interest payment state revenue collection annual collection financial responsibility bond interest payments General Fund transfer premium and accrued interest revenue officers responsibility bond obligations financial power legally binding debt bond fund transfer
Section § 13999.7
This law section adopts the State General Obligation Bond Law specifically for managing the issuance, sale, and repayment of certain bonds. While it incorporates the broader state law, it has its own rules for setting interest rates on these bonds, which are determined by the Treasurer and a committee. These bonds cannot have a maturity longer than 50 years from when they are issued or when each series begins.
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.
State General Obligation Bond Law issuance bond sale bond repayment interest rates Treasurer committee approval maximum maturity bond series 50-year maturity limit
Section § 13999.8
This law involves the allocation and management of funds for supporting municipal water treatment projects. It sets aside $250 million for grants and loans to help cities build eligible clean water projects.
It allows the creation of a State Water Pollution Control Revolving Fund if federal requirements demand state matching funds for a federal loan program. Municipalities can receive state grants covering a portion of project costs and have to secure federal assistance when possible, ensure proper operation and uphold maintenance upon project completion.
Loans to municipalities are subject to certain public participation and election conditions. They can borrow for up to 25 years with interest rates dependent on state bond interest rates. A portion of loan repayments goes to the Water Reclamation Account while the rest is used for future grants and loans.
Support may be given to reimburse construction projects that initially missed state grants due to depleted funds. Adjustments in available loan percentages are also specified depending on federal funding changes under the Clean Water Act.
(a)CA Water Code § 13999.8(a) The sum of two hundred fifty million dollars ($250,000,000) 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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(c)(1) An estimate of the reasonable cost of the eligible project.
(2)CA Water Code § 13999.8(c)(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)CA Water Code § 13999.8(c)(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(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)CA Water Code § 13999.8(i) All loans pursuant to this section are subject to all of the following provisions:
(1)CA Water Code § 13999.8(i)(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)CA Water Code § 13999.8(i)(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)CA Water Code § 13999.8(i)(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)CA Water Code § 13999.8(i)(4) The first thirty million dollars ($30,000,000) 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.
Clean Water Construction Grant municipal loans state matching funds State Water Pollution Control Revolving Fund eligible clean water projects federal Clean Water Act fund transfer state grant eligibility municipality funding conditions project cost reimbursement public participation in loans loan interest rate Water Reclamation Account loan repayments construction costs
Section § 13999.9
This law sets aside $40 million to help small communities in California build or upgrade sewage treatment facilities under the guidance of the Clean Water Act. Small communities can receive grants that cover up to 97.5% of project costs for pollution-related studies, planning, design, and construction work. These projects generally must cost $2.5 million or less unless deemed a cost-effective solution for significant water quality or public health issues. The contract terms must include certain provisions as specified by related regulations.
(a)CA Water Code § 13999.9(a) The sum of forty million dollars ($40,000,000) 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)CA Water Code § 13999.9(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 ($2,500,000) 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)CA Water Code § 13999.9(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.
small communities assistance Clean Water Act sewage treatment facilities state grants pollution studies planning and design construction funding water quality solutions public health protection supplemental state assistance project cost limitations cost-effective water projects contract provisions small community grants
