SECTIONS 116760.50-116760.90 - California Statutes

HEALTH AND SAFETY CODE

SECTION 116760.50-116760.90

116760.50. The department shall establish criteria that shall be
met for projects to be eligible for consideration for funding under
this chapter. The criteria shall include all of the following:
(a) All preliminary design work for a defined project that will
enable the applicant to supply water that meets safe drinking water
standards, including a cost estimate for the project, shall be
completed.
(b) A legal entity shall exist that has the authority to enter
into contracts and incur debt on behalf of the community to be served
and owns the public water system or has the right to operate the
public water system under a lease with a term of at least 20 years,
unless otherwise authorized by the department. If the proposed
project is funded by a loan under this chapter, the department may
require the applicant to secure a lease for the full term of the loan
if the loan exceeds 20 years.
(c) The applicant shall hold all necessary water rights.
(d) The applicant shall have completed any review required
pursuant to the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) and the
guidelines adopted pursuant thereto, and have included plans for
compliance with that act in its preliminary plans for the project.
(e) The applicant has assembled sufficient financial data to
establish its ability to complete the proposed project and to
establish the amount of debt financing it can undertake.

116760.60. The department shall notify suppliers that may be
eligible for funding pursuant to this chapter of the purposes of this
chapter and the regulations established by the department.

116760.70. (a) The department, after public notice and hearing,
shall, from time to time, establish a priority list of proposed
projects to be considered for funding under this chapter. In doing
so, the department shall determine if improvement or rehabilitation
of the public water system is necessary to provide pure, wholesome,
and potable water in adequate quantity at sufficient pressure for
health, cleanliness, and other domestic purposes. The department
shall establish criteria for placing public water systems on the
priority list for funding which shall include criteria for priority
list categories. Priority shall be given to projects that meet all of
the following requirements:
(1) Address the most serious risk to human health.
(2) Are necessary to ensure compliance with requirements of
Chapter 4 (commencing with Section 116270) including requirements for
filtration.
(3) Assist systems most in need on a per household basis according
to affordability criteria.
(b) The department may, in establishing a new priority list, merge
those proposed projects from the existing priority list into the new
priority list.
(c) In establishing the priority list, the department shall
consider the system's implementation of an ongoing source water
protection program or wellhead protection program.
(d) In establishing the priority list categories and the priority
for funding projects, the department shall carry out the intent of
the Legislature pursuant to subdivisions (e) and (f) of Section
116760.10 and do all of the following:
(1) Give priority to upgrade an existing system to meet drinking
water standards.
(2) After giving priority pursuant to paragraph (1), consider
whether the applicant has sought other funds when providing funding
for a project to upgrade an existing system and to accommodate a
reasonable amount of growth.
(e) Consideration of an applicant's eligibility for funding shall
initially be based on the priority list in effect at the time the
application is received and the project's ability to proceed. If a
new priority list is established during the time the application is
under consideration, but before the applicant receives a letter of
commitment, the department may consider the applicant's eligibility
for funding based on either the old or new priority list.
(f) The department may change the ranking of a specific project on
the priority lists at any time following the publication of the list
if information, that was not available at the time of the
publication of the list, is provided that justifies the change in the
ranking of the project.
(g) The department shall provide one or more public hearings on
the Intended Use Plan, the priority list, and the criteria for
placing public water systems on the priority list. The department
shall provide notice of the Intended Use Plan, criteria, and priority
list not less than 30 days before the public hearing. The Intended
Use Plan, criteria, and priority list shall not be subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code. The department
shall conduct duly noticed public hearings and workshops around the
state to encourage the involvement and active input of public and
affected parties, including, but not limited to, water utilities,
local government, public interest, environmental, and consumer
groups, public health groups, land conservation interests, health
care providers, groups representing vulnerable populations, groups
representing business and agricultural interests, and members of the
general public, in the development and periodic updating of the
Intended Use Plan and the priority list.
(h) The requirements of this section do not constitute an
adjudicatory proceeding as defined in Section 11405.20 of the
Government Code and Section 11410.10 of the Government Code is not
applicable.

116760.79. Applications for funding under this chapter shall be
made in the form and with the supporting material prescribed by the
department.

116760.80. (a) The department shall determine, based on
applications received, whether a particular applicant meets the
criteria to be eligible for consideration.
(b) If the applicant does not meet the criteria, it may be
considered for planning and preliminary engineering study funding.
Applicants successfully completing a study are eligible for
consideration for project design and construction funding after their
study is completed and they have met the criteria to be eligible for
consideration for project design and construction funding.

116760.90. (a) The department shall not approve an application for
funding unless the department determines that the proposed study or
project is necessary to enable the applicant to meet safe drinking
water standards, and is consistent with an adopted countywide plan,
if any. The department may refuse to fund a study or project if it
determines that the purposes of this chapter may more economically
and efficiently be met by means other than the proposed study or
project. The department shall not approve an application for funding
a project with a primary purpose to supply or attract future growth.
The department may limit funding to costs necessary to enable
suppliers to meet primary drinking water standards, as defined in
Chapter 4 (commencing with Section 116270).
(b) With respect to applications for funding of project design and
construction, the department shall also determine all of the
following:
(1) Upon completion of the project, the applicant will be able to
supply water that meets safe drinking water standards.
(2) The project is cost-effective.
(3) If the entire project is not to be funded under this chapter,
the department shall specify which costs are eligible for funding.