BILL NUMBER: AB 2636 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2014
INTRODUCED BY Assembly Members Gatto and Skinner
( Coauthors: Assembly Members
Rendon, Rodriguez, Ting, and
Williams )
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 amended, 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 and provide
that the moneys in the fund are available to the Department of
Water Resources and would continuously appropriate moneys in
the fund, without regard to fiscal year, to the department
, upon appropriation by the Legislature, 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.
Existing law, the Costa-Machado Water Act of 2000, a bond act
approved by the voters as Proposition 13 at the March 7, 2000,
statewide primary election, authorizes the issuance of general
obligation bonds in the amount of $1,970,000,000 for grants, loans,
and direct expenditures for the purposes of financing a safe drinking
water, clean water, watershed protection, and flood protection
program.
This bill would transfer to the CalConserve Water Use Efficiency
Revolving Fund from the bond act specified bond proceeds issued and
available for agricultural water projects. This bill would require
the department to use these moneys for loans and grants to local
agencies to acquire and construct agricultural water conservation
projects consistent with provisions of the bond act.
Vote: 2/3 majority . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) Water is a finite resource in California, and dry hydrologic
conditions caused by drought and climate change increase the
uncertainty of water supplies.
(b) Reliable water supplies are essential for public health and
safety, stability of local, regional, and statewide economies, and
food security.
(c) Water use efficiency, including conservation and recycled
water, is an effective strategy to improve management of water
resources at the local and regional levels. Improved resource
management will help local communities withstand drought and other
conditions that limit water supplies.
(d) Water use efficiency projects will become more complex and
costly in order to increase the water savings potential.
(e) A sustainable source of funding is needed for urban and
agricultural water use efficiency projects to assist water and
recycled water providers in expanding local and regional programs.
(f) A revolving fund program is a mechanism to provide a
sustainable funding source that provides incentives for matching
local funds and accelerates local water supply development.
SECTION 1. SEC. 2. 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 Measurable reductions in
urban per capita water use.
(2) Improve Improvements in
agricultural water use efficiency and a measurable reduction in
agricultural water use .
(3) Increase Increased use of
recycled water.
(4) Reduce Measurable reductions in
greenhouse gas emissions through water efficiency
improvements , and water and energy use .
(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"
the following terms have the following meanings:
(a) "Fund" means the CalConserve
Water Use Efficiency Revolving Fund established pursuant to Section
81020.
(b) "Technical assistance" means costs incurred for providing
advice, training, or other assistance to local government and water
utilities, such as the following:
(1) Conducting specialized studies to identify water conservation
opportunities that meet the intent of Section 81000.
(2) Planning of specific remodeling, renovation, repair,
replacement, or other projects related to water conservation.
(3) Developing a project proposal for funding from the fund.
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
Moneys in the fund are continuously appropriated,
without regard to fiscal year, available, upon
appropriation by the Legislature, to the department for
expenditure in accordance with this division. The department is the
state agency responsible for administering the fund.
81022. The proceeds of any bonds authorized to be issued and
available for the purposes of Section 79157 shall be transferred to
the fund and used by the department for loans and grants to local
agencies to acquire and construct agricultural water conservation
projects consistent with Article 3 (commencing with Section 79157) of
Chapter 8 of Division 26.
81025. 81024. 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.
(e) Make requests on behalf of the state for deposit into the fund
of available federal moneys.
(f) Enter into agreements with the federal government for federal
contributions to the fund.
(g) Accept federal contributions to the fund.
81026. (a) The department may enter into an agreement with the
federal government for federal contributions to the fund only if both
of the following conditions are met:
(1) The state identifies any required matching funds.
(2) The department is prepared to commit to the expenditure of any
minimum amount in the fund in the manner required by the federal
government.
(b) Any agreement between the department and the federal
government shall contain those provisions, terms, and conditions
required by the federal government and any implementing federal
rules, regulations, guidelines, and policies, including, but not
limited to, agreement to expend moneys in the fund in an expeditious
and timely manner.
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 20
years after loan funding. Full amortization for loans to
disadvantaged communities shall be not later than 20
25 years after loan funding.
(3) Require the loan recipient to establish an acceptable
dedicated source of revenue for repayment of a loan.
(b) To guarantee, or purchase insurance for, local obligations if
that action would improve credit market access or reduce interest
rates.
(b)
(c) 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)
(d) To earn interest.
(d)
(e) Technical assistance.
(f) For payment of the reasonable costs of
administering the fund , not to exceed 4 percent of the fund
.
(g) Grants, principal forgiveness, negative interest rates, and
any other type of, or variation on, the types of assistance described
in this section that is authorized by a federal capitalization grant
deposited in the fund to the extent authorized and funded by that
federal capitalization grant.
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. Projects shall have one or more of the following benefits:
(a) Measurably reduce urban per capita potable water use.
(b) Measurably reduce agricultural water use.
(c) Increase the use or availability of recycled water supply.
(d) Reduce greenhouse gas emission and water and energy use.
81040. 81042. Subject to all
applicable constitutional restrictions, a local government may borrow
money and incur indebtedness pursuant to this division.
81045. 81044. The department may
adopt rules and regulations guidelines
necessary or convenient to implement this division.
81046. (a) A local government, municipal utility, or
investor-owned utility may implement water-use efficiency loan
programs pursuant to this section through on-bill financing.
(b) Funds available pursuant to this section shall not be expended
by local governments, municipal utilities, or investor-owned
utilities for administrative costs.