AB 2636, as introduced, Gatto. CalConserve Water Use Efficiency Revolving Fund.
The California Constitution requires the reasonable and beneficial use of water.
This bill would establish the CalConserve Water Use Efficiency Revolving Fund administered by the Department of Water Resources and would continuously appropriate moneys in the fund, without regard to fiscal year, to the department, for the purpose of water use efficiency projects. This bill would require moneys in the fund to be used for purposes that include, but are not limited to, at-or-below market interest rate loans and would permit the department to enter into agreements with local governments or investor-owned utilities that provide water or recycled water service to provide loans.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Division 30 (commencing with Section 81000)
2is added to the Water Code, to read:
3
(a) It is the intent of the Legislature in establishing the
7CalConserve Water Use Efficiency Revolving Fund to create a
8sustainable funding source for water use efficiency projects.
9(b) It is further the intent of the Legislature that the funds from
10the CalConserve Water Use Efficiency Revolving Fund be used
11for the following purposes:
12(1) Reduce urban per capita water use.
13(2) Improve agricultural water use efficiency.
14(3) Increase use of recycled water.
15(4) Reduce greenhouse gas
emissions through water efficiency
16improvements.
17(c) It is the intent of the Legislature that any public funds made
18available by this division to investor-owned utilities regulated by
19the Public Utilities Commission should be for the benefit of the
20ratepayers or the public and not the investors pursuant to oversight
21by the Public Utilities Commission.
For purposes of this division, “fund” means the
23CalConserve Water Use Efficiency Revolving Fund established
24pursuant to Section 81020.
25
The CalConserve Water Use Efficiency Revolving
30Fund is hereby created in the State Treasury. Notwithstanding
31Section 13340 of the Government Code, all moneys in the fund
32are continuously appropriated, without regard to fiscal year, to the
33department for expenditure in accordance with this division. The
34department is the state agency responsible for administering the
35fund.
The department may undertake any of the following:
37(a) Provide for the deposit of any available and necessary
38moneys into the fund.
39(b) Enter into agreements with local governments or
40investor-owned utilities that provide water or recycled water service
P3 1to provide loans for the purposes described in subdivision (b) of
2Section 81000.
3(c) Provide for appropriate audit, accounting, and fiscal
4management services, plans, and reports relative to the fund.
5(d) Take additional incidental action as appropriate for the
6adequate administration and operation of the
fund.
Moneys in the fund shall be used for the following
8purposes:
9(a) Loans that meet all of the following requirements:
10(1) Are made at-or-below market interest rates.
11(2) Require annual payments of principal and any interest, with
12repayment commencing not later than one year after loan funding
13and full amortization not later than 15 years after loan funding.
14Full amortization for loans to disadvantaged communities shall be
15not later than 20 years after loan funding.
16(3) Require the loan recipient to establish an acceptable
17dedicated source of revenue for repayment of a
loan.
18(b) As a source of revenue or security for the payment of
19principal and interest on revenue or general obligation bonds issued
20by the state, if the proceeds of the sale of those bonds will be
21deposited in the fund.
22(c) To earn interest.
23(d) For payment of the reasonable costs of administering the
24fund.
Any repayment of fund moneys, including interest
26payments, and all interest earned on, or accruing to, any moneys
27in the fund, shall be deposited in the fund and shall be available
28for expenditure for the purposes and uses authorized by this
29division.
30
Subject to all applicable constitutional restrictions, a
34local government may borrow money and incur indebtedness
35pursuant to this division.
The department may adopt rules and regulations
37necessary or convenient to implement this division.
O
99