Amended in Assembly May 24, 2013

Amended in Assembly January 24, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 30

Introduced by Assembly Member Perea

December 3, 2012

An act to amend Section 13477.6 of the Water Code, relating to water quality.

LEGISLATIVE COUNSEL’S DIGEST

AB 30, as amended, Perea. Water quality.

Existing law, the Porter-Cologne Water Quality Control Act begin delete (state act), end delete begin insert or the state act, end insert establishes the State Water Pollution Control Revolving Fund program pursuant to which state and federal funds are continuously appropriated from the State Water Pollution Control Revolving Fund begin delete (fund) end delete to the State Water Resources Control Board for loans and other financial assistance for the construction of publicly owned treatment works by a municipality, the implementation of a management program, the development and implementation of a conservation and management plan, and other related purposes in accordance with the Federal Water Pollution Control Act and the state act. Existing law authorizes the board, until 2014, to assess a specified annual charge in connection with any financial assistance made pursuant to the revolving fund program in lieu of interest that otherwise would be charged and requires the proceeds generated from the imposition of that charge to be deposited in the State Water Pollution Control Revolving Fund Small Community Grant Fund begin delete (grant fund), end delete begin insert or grant fund, end insert along with any interest earned upon the moneys in the grant fund. Existing law provides that the charge remain unchanged until 2014, at which time it will terminate and be replaced by an identical interest rate, and prohibits the deposit of more than $50,000,000 into the grant fund. Existing law authorizes the board to expend the moneys in the grant fund, upon appropriation by the Legislature, for grants for eligible projects under the revolving fund program that serve small communities, as defined.

This bill would eliminate the requirement that the charge remain unchanged until 2014 and instead would authorize the board to assess the charge without change unless the board begin delete determines that application of the charge is not consistent with federal requirements regarding the fund, end delete begin insert makes a prescribed determination; if, however, the refinancing repayment is incomplete, end insert at which time the board would be required to replace the charge with an identical interest rate. This bill would eliminate the prohibition on the deposit of more than $50,000,000 collected by the charge into the grant fund. begin insert This bill would require the board to expend moneys appropriated from the grant fund within a period of 4 years from the date of encumbrance. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 13477.6 of the Water Code is amended
to read:

13477.6.  

(a) The State Water Pollution Control Revolving
Fund Small Community Grant Fund is hereby created in the State
Treasury.

(b) The following moneys shall be deposited in the grant fund:

(1) Moneys transferred to the grant fund pursuant to subdivision
(c).

(2) Notwithstanding Section 16475 of the Government Code,
any interest earned upon the moneys deposited in the grant fund.

(c) (1) For any financing made pursuant to Section 13480, the
board may assess an annual charge to be deposited in the grant
fund in lieu of interest that would otherwise be charged.

(2)  begin delete (A) end delete begin delete   end delete The charge authorized by this subdivision may be
applied at any time during the term of the financing, and once
applied, shall remain unchanged unless the board begin delete makes the
determination described in subparagraph (B). end delete begin insert determines that the
application of the charge is any of the following: end insert

begin delete

(B) If the board determines that application of the charge is not
consistent with federal requirements regarding the fund, the board
shall cease the collection of the charge and shall replace the charge
with an identical interest rate.

end delete begin insert

(A) No longer consistent with federal requirements regarding
the fund.

end insert begin insert

(B) No longer necessary.

end insert begin insert

(C) Negatively affecting the board’s ability to fund projects that
supports its water quality goals.

end insert

(3) The charge shall not increase the financing repayment
amount as set forth in the terms and conditions imposed pursuant
to this chapter.

begin insert

(4) If the board ceases collecting the charge before the financing
repayment is complete, the board shall replace the charge with
an identical interest rate.

end insert

(d) (1) Moneys in the grant fund, upon appropriation by the
Legislature to the board, may be expended, in accordance with
this chapter, for grants for projects described in subdivision (a) of
Section 13480 begin insert and subdivision (a) of Section 35.3115 of Title 40
of the Code of Federal Regulations end insert that serve small communities
as defined in subdivision (a) of Section 30925 of the Public
Resources Code. begin insert The board shall expend moneys appropriated
from the grant fund within a period of four years from the date of
encumbrance. end insert

(2) For the purpose of approving grants, the board shall give
priority to projects that serve severely disadvantaged communities.