BILL NUMBER: AB 977 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Mayes
FEBRUARY 26, 2015
An act to amend Section 13480 of the Water Code, relating to the
State Water Pollution Control Revolving Fund.
LEGISLATIVE COUNSEL'S DIGEST
AB 977, as amended, Mayes. State Water Pollution Control Revolving
Fund.
Existing law continuously appropriates state and federal funds in
the State Water Pollution Control Revolving Fund to the State Water
Resources Control Board for loans and other financial assistance for
the construction of publicly owned treatment works and other related
purposes, to a municipality, intermunicipal agency, interstate
agency, or state agency in accordance with the federal Clean Water
Act and the Porter-Cologne Water Quality Control Act.
Existing law requires that moneys in the fund be used only for
permissible purposes allowed by the Clean Water Act or a federal
capitalization grant deposited in the fund to the extent authorized
and funded by the grant. Existing law requires the
loans to meet certain criteria, including requiring full
amortization not later than 20 years after project completion, except
as specified.
This bill would make nonsubstantive changes to the requirement
that moneys in the fund be used only for permissible purposes allowed
by the Clean Water Act or a federal capitalization grant deposited
in the fund.
This bill would, subject to the same exception, require full
amortization not later than 30 years after project completion.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13480 of the Water Code is amended to read:
13480. (a) Moneys in the fund shall be used only for the
permissible purposes allowed by the federal act or a federal
capitalization grant deposited in the fund, to the extent authorized
and funded by that grant, including providing financial assistance
for the following purposes:
(1) The construction of publicly owned treatment works, as defined
by Section 212 of the federal act (33 U.S.C. Sec. 1292), by any
municipality.
(2) Implementation of a management program pursuant to Section 319
of the federal act (33 U.S.C. Sec. 1329).
(3) Development and implementation of a conservation and
management plan under Section 320 of the federal act (33 U.S.C. Sec.
1330).
(4) Financial assistance, other than a loan, toward the nonfederal
share of costs of any grant-funded treatment works project, but only
if that assistance is necessary to permit the project to proceed.
(5) Financial assistance provided under the federal American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) for projects
authorized pursuant to this subdivision.
(b) Consistent with expenditure for authorized purposes, moneys in
the fund may be used for the following purposes:
(1) Loans that meet all of the following requirements:
(A) Are made at or below market interest rates.
(B) Require annual payments of principal and any interest, with
repayment commencing not later than one year after completion of the
project for which the loan is made and full amortization not later
than 20 30 years after project
completion unless otherwise authorized by a federal capitalization
grant deposited in the fund, to the extent authorized and funded by
that grant. Loan forgiveness is permissible to the extent authorized
by a federal capitalization grant deposited in the fund, to the
extent authorized and funded by that grant.
(C) Require the loan recipient to establish an acceptable
dedicated source of revenue for repayment of a loan.
(D) (i) Contain other terms and conditions required by the board
or the federal act or applicable rules, regulations, guidelines, and
policies. To the extent permitted by federal law, the combined
interest and loan service rate shall be set at a rate that does not
exceed 50 percent of the interest rate paid by the state on the most
recent sale of state general obligation bonds and the combined
interest and loan service rate shall be computed according to the
true interest cost method. If the combined interest and loan service
rate so determined is not a multiple of one-tenth of 1 percent, the
combined interest and loan service rate shall be set at the multiple
of one-tenth of 1 percent next above the combined interest and loan
service rate so determined. A loan from the fund used to finance
costs of facilities planning, or the preparation of plans,
specifications, or estimates for construction of publicly owned
treatment works shall comply with Section 603(e) of the federal act
(33 U.S.C. Sec. 1383(e)).
(ii) Notwithstanding clause (i), if the loan applicant is a
municipality, an applicant for a loan for the implementation of a
management program pursuant to Section 319 of the federal act (33
U.S.C. Sec. 1329), or an applicant for a loan for nonpoint source or
estuary enhancement pursuant to Section 320 of the federal act (33
U.S.C. Sec. 1330), and the applicant provides matching funds, the
combined interest and loan service rate on the loan shall be 0
percent. A loan recipient that returns to the fund an amount of money
equal to 20 percent of the remaining unpaid federal balance of an
existing loan shall have the remaining unpaid loan balance refinanced
at a combined interest and loan service rate of 0 percent over the
time remaining in the original loan contract.
(2) To buy or refinance the debt obligations of municipalities
within the state at or below market rates if those debt obligations
were incurred after March 7, 1985.
(3) To guarantee, or purchase insurance for, local obligations
where that action would improve credit market access or reduce
interest rates.
(4) 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.
(5) To establish loan guarantees for similar revolving funds
established by municipalities.
(6) To earn interest.
(7) For payment of the reasonable costs of administering the fund
and conducting activities under Subchapter VI (commencing with
Section 601) of the federal act (33 U.S.C. Sec. 1381 et seq.). Those
costs shall not exceed 4 percent of all federal contributions to the
fund, except that if permitted by federal and state law, interest
repayments into the fund and other moneys in the fund may be used to
defray additional administrative and activity costs to the extent
permitted by the federal government and approved by the Legislature
in the Budget Act.
(8) For financial assistance toward the nonfederal share of the
costs of grant-funded treatment works projects to the extent
permitted by the federal act.
(9) Grants, principal forgiveness, negative interest rates, and
any other type of, or variation on the above types of, assistance
authorized by a federal capitalization grant deposited in the fund,
to the extent authorized and funded by that grant.