Chapter 6.5State Water Pollution Control Revolving Fund
Section § 13475
This section explains that California is creating a program, in partnership with the federal government, to manage and operate a fund for water pollution control projects. This fund will work in line with the federal Clean Water Act, meaning it will receive federal funding and follow federal rules. The goal is to help the state participate fully in reducing water pollution by having a system to finance necessary projects. The law intends to achieve these goals by interpreting its terms broadly.
Section § 13476
This section outlines definitions important for understanding terms in this chapter related to water pollution management in California. It clarifies what is meant by terms like 'administration fund', 'board', and 'federal act', which refer to specific funding and regulatory bodies. 'Financial assistance' is broadly defined to include various forms of funding but generally excludes grants unless specified by federal grants. The 'fund' and 'grant fund' relate to particular state funds for managing water pollution control projects. It also specifies what 'matching funds' are and clarifies terms like 'municipality', 'publicly owned', and 'severely disadvantaged community' to ensure clarity in policy application.
Section § 13477
The State Water Pollution Control Revolving Fund is set up in California's state treasury. It is automatically funded to support projects that align with its goals and doesn't depend on specific budget years. The state's board manages this fund. To meet the requirements of a specific federal law, two specific accounts are created within the fund. The board can also change these accounts or create new ones if needed to manage the fund properly.
Section § 13477.5
This law establishes the State Water Pollution Control Revolving Fund Administration Fund in California's State Treasury. The fund will receive money from several sources: funds for administrative costs, fees collected for financial assistance services, and any interest earned on the money in the fund.
The board can charge an annual fee, up to 1% of the financial assistance balance, for financial assistance services related to water pollution control projects. This fee will not increase the repayment amount and once set, it remains fixed for the duration of the financial assistance.
The money in the fund can be used to cover the costs of fund administration as approved by the legislature. The board must adjust the financial service fee annually to match the revenue set in the state's budget.
Section § 13477.6
This law establishes the State Water Pollution Control Revolving Fund Small Community Grant Fund to help small communities finance wastewater projects. Money for this grant fund comes from several sources, including transfers, interest earnings, and other designated funds. The board may impose a charge instead of interest on financing related to water quality projects, but it's conditional on federal compliance and necessity. Grants from the fund support water projects for small, often disadvantaged communities, with the legislature having four years to allocate these funds. Priority is given to communities facing severe disadvantage, and funds can also be used for technical assistance.
Section § 13478
This section explains what actions the board can take regarding managing a fund for water-related projects. They can partner and accept funds from the federal government and municipalities and ensure these funds comply with federal laws. Municipalities offering matching funds must prove those funds exist. The board handles fund money appropriately, making sure projects meet federal requirements.
The board can audit, manage finances, and report on the fund's use. They may charge municipalities a fee for acquiring federal funds unless alternative funds cover this cost. Returned or matching funds can be used for administrative needs. They can manage grants and revenue bonds related to safe drinking water projects. This became effective July 1, 2014.
Section § 13479
This law allows a board to make an agreement with the federal government for financial contributions to a fund if two conditions are met. First, the state must have identified any required funds to match the federal contribution. Second, the board must be ready to spend at least a minimum amount as required by federal law.
Any agreement must include terms that ensure that the money in the fund is spent quickly and used to help meet federal laws and deadlines. The goal is to keep moving toward compliance with federal requirements, including those specific to municipal areas.
Section § 13480
This law explains how funds can be used following federal rules when these funds come from the federal government. First, it allows making loans with certain conditions like reasonable interest rates, timely repayments starting one year after project completion, and requiring a reliable income stream for repayment. Some loans can have a 0% interest rate if the borrower meets specific criteria, like being a municipality with matching funds.
The funds can also be used to refinance municipal debts, improve credit or reduce interest rates by buying insurance, support state-issued bonds, offer loan guarantees, and earn interest. There's also a provision for covering administrative costs of running the fund, within certain limits, and possibly help with part of the cost for grant-funded projects. Lastly, other forms of financial assistance, like grants or forgiving part of the loan, are possible if allowed by a federal grant.
Section § 13481
This law states that a specific fund is designated to provide financial support only for projects that align with certain federal plans and are included on an approved state priority list.
Specifically, the projects must meet criteria set by various sections of the federal act related to water pollution control and be approved for funding by the state.
Section § 13481.5
This law section states that when managing the funding, the board should prioritize certain types of projects. These include projects tackling public health issues or pollution in water bodies, those necessary for meeting legal regulations, water recycling efforts, initiatives to prevent water quality decline, and projects prompted by enforcement orders.
Section § 13481.6
If someone wants financial aid for work on the Pure Water San Diego Program projects after January 1, 2020, they must make sure contractors use a project labor agreement as per specific rules. This rule applies to the North City Water Reclamation Plant, the North City Pure Water Facility, or any other related area.
The requirement for project labor agreements is necessary until all parts of the program are complete.
Section § 13481.7
This law allows a city or town to borrow money and take on debt as long as it follows constitutional guidelines.
Section § 13482
This law outlines how funds can be managed under the Clean Water Bond Law of 1984 to match federal funds. The board, with approval, can move money from the Clean Water Construction Grant Account into another fund to meet federal match requirements. Repayments and interest from these funds are to be reinvested into the fund indefinitely for its intended uses. Municipalities that choose to contribute matching funds must set up a legal account, pay contractors before federal funds are available, and allow state access to their financial records.
Section § 13483
This law allows funds to be used to pay back any profits gained from investments that the federal Tax Reform Act of 1986 requires to be returned. If state or federal law does not allow the funds to be used this way, the rebates must come from the state's General Fund. Additionally, the board has the authority to make contracts or obtain services and equipment to comply with the federal Tax Reform Act and Clean Water Act.
Section § 13485
This law section authorizes the board to create rules and regulations needed to enforce this chapter and comply with federal laws. The board can also use a policy handbook, which doesn't have to follow certain standard government procedures. This section took effect on July 1, 2014.