BILL NUMBER: AB 2636	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Gatto and Skinner

                        FEBRUARY 21, 2014

   An act to add Division 30 (commencing with Section 81000) to the
Water Code, relating to water, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   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:

  SECTION 1.  Division 30 (commencing with Section 81000) is added to
the Water Code, to read:

      DIVISION 30.  CalConserve Water Use Efficiency Revolving Loan
Program



      PART 1.  General Provisions


   81000.  (a) It is the intent of the Legislature in establishing
the CalConserve Water Use Efficiency Revolving Fund to create a
sustainable funding source for water use efficiency projects.
   (b) It is further the intent of the Legislature that the funds
from the CalConserve Water Use Efficiency Revolving Fund be used for
the following purposes:
   (1) Reduce urban per capita water use.
   (2) Improve agricultural water use efficiency.
   (3) Increase use of recycled water.
   (4) Reduce greenhouse gas emissions through water efficiency
improvements.
   (c) It is the intent of the Legislature that any public funds made
available by this division to investor-owned utilities regulated by
the Public Utilities Commission should be for the benefit of the
ratepayers or the public and not the investors pursuant to oversight
by the Public Utilities Commission.
   81005.  For purposes of this division, "fund" means the
CalConserve Water Use Efficiency Revolving Fund established pursuant
to Section 81020.

      PART 2.  CalConserve Water Use Efficiency Revolving Fund


   81020.  The CalConserve Water Use Efficiency Revolving Fund is
hereby created in the State Treasury. Notwithstanding Section 13340
of the Government Code, all moneys in the fund are continuously
appropriated, without regard to fiscal year, to the department for
expenditure in accordance with this division. The department is the
state agency responsible for administering the fund.
   81025.  The department may undertake any of the following:
   (a) Provide for the deposit of any available and necessary moneys
into the fund.
   (b) Enter into agreements with local governments or investor-owned
utilities that provide water or recycled water service to provide
loans for the purposes described in subdivision (b) of Section 81000.

   (c) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
   (d) Take additional incidental action as appropriate for the
adequate administration and operation of the fund.
   81030.  Moneys in the fund shall be used for the following
purposes:
   (a) Loans that meet all of the following requirements:
   (1) Are made at-or-below market interest rates.
   (2) Require annual payments of principal and any interest, with
repayment commencing not later than one year after loan funding and
full amortization not later than 15 years after loan funding. Full
amortization for loans to disadvantaged communities shall be not
later than 20 years after loan funding.
   (3) Require the loan recipient to establish an acceptable
dedicated source of revenue for repayment of a loan.
   (b) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds issued
by the state, if the proceeds of the sale of those bonds will be
deposited in the fund.
   (c) To earn interest.
   (d) For payment of the reasonable costs of administering the fund.

   81035.  Any repayment of fund moneys, including interest payments,
and all interest earned on, or accruing to, any moneys in the fund,
shall be deposited in the fund and shall be available for expenditure
for the purposes and uses authorized by this division.

      PART 3.  Implementation


   81040.  Subject to all applicable constitutional restrictions, a
local government may borrow money and incur indebtedness pursuant to
this division.
   81045.  The department may adopt rules and regulations necessary
or convenient to implement this division.