AB 954,
as amended, Mathis. begin deleteWater Quality, Supply, and Infrastructure Improvement Act of 2014. end deletebegin insertWater and Wastewater Loan and Grant Pilot Program.end insert
Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards.
end insertbegin insertThis bill would require the State Water Resources Control Board to establish a pilot program to provide low-interest loans and grants to eligible applicants for specified purposes relating to drinking water and wastewater treatment. This bill would prohibit the board from issuing these loans or grants on or after January 1, 2026. This bill would create the Water and Wastewater Loan and Grant Fund and provide that the moneys in this fund are available, upon appropriation by the Legislature, to the board for expenditure for the pilot program. This bill would transfer to the Water and Wastewater Loan and Grant Fund $20,000,000 from the General Fund.
end insertExisting law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program.
end deleteThis bill would state the intent of the Legislature to enact legislation to implement this bond act.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertThe Legislature hereby finds and declares the
2following:end insert
3(a) Many areas of the state are disproportionately impacted by
4drought because they are heavily dependent or completely reliant
5on groundwater from basins that are in overdraft and in which
6the water table declines year after year or from basins that are
7contaminated.
8(b) There are a number of state grant and loan programs that
9provide financial assistance to communities to address drinking
10water and wastewater needs. Unfortunately, there is no program
11in place to provide similar assistance to individual homeowners
12who are reliant on their own groundwater wells and who may not
13be able to afford conventional private loans to undertake vital
14water supply, water quality, and wastewater improvements.
15(c) The program created by this act is intended to bridge that
16gap by providing low-interest loans, grants, or both, to individual
17
homeowners to undertake actions necessary to provide safer,
18cleaner, and more reliable drinking water and wastewater
19treatment. These actions may include, but are not limited to,
20digging deeper wells, improving existing wells and related
21equipment, addressing drinking water contaminants in the
22homeowner’s water, or connecting to a local water or wastewater
23system.
begin insertChapter 6.6 (commencing with Section 13486) is added
25to Division 7 of the end insertbegin insertWater Codeend insertbegin insert, to read:end insert
(a) The board shall establish a pilot program in
5accordance with this chapter to provide low-interest loans and
6grants to eligible applicants for any of the following purposes:
7(1) Extending or connecting service lines from a water or
8wastewater system to the applicant’s residence or plumbing.
9(2) Paying reasonable charges or fees for connecting to a water
10or wastewater system.
11(3) Paying costs to close abandoned septic tanks and water
12wells, as necessary, to protect health and safety as required by
13local or state law.
14(4) Deepening an existing groundwater well.
15(5) Improving an existing groundwater well, including
16associated equipment.
17(6) Installing a water treatment system if the groundwater
18exceeds a primary or secondary drinking standard, as defined in
19Section 116275 of the Health and Safety Code.
20(b) The board may adopt any regulation it determines is
21necessary to carry out the purposes of the chapter as an emergency
22regulation in accordance with Chapter 3.5 (commencing with
23Section 11340) of Part 1 of Division 3 of Title 2 of the Government
24Code.
25(c) The board shall not issue loans or grants pursuant to this
26chapter on or after January 1, 2026. This subdivision shall not
27terminate either of the following rights, obligations, or authorities,
28or any provision necessary to carry out these
rights, obligations,
29or authorities:
30(1) The repayment of a loan due and payable to the board.
31(2) The resolution of a cost recovery action or the initiation of
32an action or other collection process to recover defaulted loan
33moneys due to the board or to recover grant moneys paid.
(a) The Water and Wastewater Loan and Grant Fund
35is hereby created in the State Treasury. The moneys in the Water
36and Wastewater Loan and Grant Fund are available, upon
37appropriation by the Legislature, to the board for expenditure in
38accordance with this chapter.
39(b) The following moneys shall be deposited in the Water and
40Wastewater Loan and Grant Fund:
P4 1(1) Moneys repaid to the board pursuant to any grant or loan
2made in accordance with this chapter, including interest payments.
3(2) Notwithstanding Section 16475 of the Government Code,
4any interest earned upon the moneys in the Water and Wastewater
5Loan and
Grant Fund.
(a) An eligible applicant for a loan shall meet all of
7the following criteria:
8(1) Have a household income below the statewide median
9household income.
10(2) Have an ownership interest in the residence.
11(3) Be unable to obtain financial assistance at reasonable terms
12and conditions from private lenders and lack the personal
13resources to undertake these improvements.
14(4) Demonstrate an ability to repay the loan. This requirement
15may be satisfied by having another party join the application as
16a cosigner.
17(b) Any loan granted shall be secured by a mortgage on the
18residence and repaid within 20 years in accordance with terms
19established by the board. The interest rate on the loan shall not
20exceed 1 percent. While any balance on the loan is outstanding,
21a loan recipient shall furnish evidence of and continually maintain
22homeowner’s insurance on the security residence to protect the
23state’s interest in the residence.
24(c) The board may enter into a contract with a private financial
25institution to provide loans consistent with the purposes of this
26chapter. If the board exercises this authority, the board may utilize
27a portion of the moneys in the Water and Wastewater Loan and
28Grant Fund to provide a loan guarantee or similar loss mitigation
29mechanism.
(a) An eligible applicant for a grant shall meet all of
31the following criteria:
32(1) Have a household income that is 60 percent or less of the
33statewide median household income.
34(2) Have an ownership interest in the residence.
35(3) Be unable to obtain financial assistance at reasonable terms
36and conditions from private lenders and lack the personal
37resources to undertake these improvements.
38(b) A grant recipient shall repay to the board the grant amount
39in full if that recipient sells the residence less than five years from
40the date that the grant
agreement was signed.
P5 1(c) A grant recipient shall repay to the board any unused grant
2funds.
begin insertTwenty million dollars ($20,000,000) is hereby
4transferred from the General Fund to the end insertbegin insertWater and Wastewater
5Loan and Grant Fund.end insert
It is the intent of the Legislature to enact
7legislation to implement the Water Quality, Supply, and
8Infrastructure Improvement Act of 2014, approved by the voters
9as Proposition 1 at the November 4, 2014, statewide general
10election.
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