BILL NUMBER: AB 2011	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 18, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 23, 2012

   An act to add Section 79784.5 to the Water Code, relating to the
Safe, Clean, and Reliable Drinking Water Supply Act of 2012.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2011, as amended, Gatto. CalConserve Water Conservation
Retrofit Program.
   Existing law creates the Safe, Clean, and Reliable Drinking Water
Supply Act of 2012, which, if approved by the voters at the November
6, 2012, statewide election, would authorize the issuance of bonds in
the amount of $11,140,000,000 pursuant to the State General
Obligation Bond Law to finance a safe drinking water and water supply
reliability program. The act would make $250,000,000 available, upon
appropriation by the Legislature from the Safe, Clean, and Reliable
Drinking Water Supply Fund of 2012, for direct expenditures, grants,
and loans for water conservation and water use efficiency plans,
projects, and programs.
   The bill would require up to $50,000,000 of those water
conservation and water use efficiency funds, upon appropriation by
the Legislature from the fund, to be allocated to the Department of
Water Resources to establish the CalConserve Water Conservation
Retrofit Program to provide grants to local water agencies for the
implementation of local and regional water conservation 
revolving  loan programs, as prescribed,  to 
 that  assist customers within the service area of the water
agency  , consistent with the act,  to carry out
water use efficiency retrofit projects  , consistent with the act
 .
   This bill would become operative only if  the Safe, Clean
and Reliable Drinking Water Supply Act of 2012   a
general obligation bond act  is approved by the voters at a
statewide general election.  This act would be repealed on
January 1, 2015. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature, in requiring the
establishment of the CalConserve program, to create a sustainable
funding source for water use efficiency retrofits. It is the further
intent of the Legislature that CalConserve help  cities and
counties   urban retail water suppliers  achieve
compliance with water use reduction mandates in Section 
10608.16   10608.24  of the Water Code, and help
homeowners and commercial, industrial, and institutional entities
 voluntarily  achieve compliance with state-mandated
standards for water use efficiency for indoor and outdoor appliances.

  SEC. 2.  Section 79784.5 is added to the Water Code, to read:
   79784.5.  Of the funds made available in Section ____ for water
conservation and water use efficiency plans, projects, and programs,
upon appropriation by the Legislature from the fund, up to fifty
million dollars ($50,000,000) shall be allocated to the department to
establish the CalConserve Water Conservation Retrofit Program. The
water conservation retrofit program shall provide grants to local
water agencies for the implementation of local and regional water
conservation  revolving  loan programs that assist customers
within the service area of the water agency to carry out water use
efficiency retrofit projects, consistent with Section ____, and in
accordance with the following:
   (a) The department shall  determine the extent to which
available funding shall be distributed geographically to 
 develop program criteria to  maximize local and statewide
conservation and water use efficiency benefits  , including, but
not limited to, geographic distribution of funds and minimum
requirements for local revolving loan programs to ensure the grants
help create a sustainable funding source for water use efficiency
retrofits  .
   (b) As a condition of the grant to the local water agency, the
department shall require the following:
   (1)  (A)   A local agency receiving 
CalConserve  funds  pursuant to this section shall
provide not less than a 30 percent  match of its funds
  cost share from nonstate sources  to support the
water conservation retrofit program. 
   (B) A local agency receiving funds pursuant to this section shall
agree to maintain the minimum revolving loan program requirements
established by the department. 
   (2) A local water conservation retrofit program shall maximize the
local and statewide conservation and water use efficiency benefits
 and shall be consistent with an adopted integrated regional
water management plan  .
   (3) An eligible retrofit project  shall   may
 include, but is not limited to, a project that 
implements a project in compliance with   voluntarily
retrofits a landscape to meet the standards of  the state
 landscape  model  water efficient landscape
 ordinance  or a local water efficient landscape ordinance
adopted pursuant to subdivision (c) of Section 65595 of the
Government Code  .
   (4) Loans  for project design and construction shall be
repaid  over a term not longer than  15 years or 
the useful life of the  project constructed or 15 years
  constructed project or installed equipment or device
 , whichever is shorter  , and may be repaid in equal
installments added to a customer's regular bill  .
   (c) The department shall annually establish the interest rate for
loans made pursuant to this chapter at 50 percent of the average
interest rate, computed by the true interest cost method paid by the
state on general obligation bonds issued in the prior calendar year.
   (d) The local water agency may charge a reasonable administration
fee to be paid along with the  capital and  interest on the
loan over the lifetime of the loan.
  SEC. 3.   (a)   This act shall become operative
only if  the Safe, Clean, and Reliable Drinking Water Supply
Act of 2012 is   Section ___ is added to the Water Code
by a general obligation bond act  approved by the voters at a
statewide general election. 
   (b) This act shall remain in effect only until January 1, 2015,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2015, deletes or extends that date.