SECTIONS 13880-13892 - California Statutes

WATER CODE

SECTION 13880-13892

13880. The purpose of this chapter is to authorize the use of
moneys in the California Safe Drinking Water Fund for a grant program
for public agencies owning or operating domestic water systems, as
authorized pursuant to the provisions of the California Safe Drinking
Water Bond Law of 1976. The Legislature hereby finds and declares
that it is necessary to establish a grant program to aid public
agencies in the construction of projects for domestic water systems,
and that certain public agencies owning or operating domestic water
systems will be otherwise unable to meet minimum safe drinking water
standards established pursuant to Chapter 4 (commencing with Section
116275) of Part 12 of Division 104 of the Health and Safety Code.

13881. As used in this chapter:
(a) "Department" means the Department of Water Resources.
(b) "Domestic water system" means a system for the provision to
the public of piped water for human consumption, if such system has
at least 15 service connections or regularly supplies water to at
least 25 individuals. Such term includes any water supply, treatment,
storage, and distribution facilities under the control of the
operator of such system.
(c) "Fund" means the California Safe Drinking Water Fund created
pursuant to Section 13859.
(d) "Project" means proposed facilities for the construction,
improvement, or rehabilitation of the domestic water system, and may
include water supply, treatment works, and all or part of a water
distribution system, if such inclusions are necessary to carry out
the purpose of this chapter.
(e) "Public agency" means any city, county, district, or other
political subdivision of the state which owns or operates a domestic
water system.
(f) "Treatment works" means any devices or systems used in the
treatment of water supplies, including necessary lands, which render
such supplies pure, wholesome, and potable for domestic purpose.

13882. (a) The department, subject to the requirements of this
chapter, is authorized to make state grants to public agencies from
moneys in the fund available for that purpose pursuant to subdivision
(d) of Section 13861, to aid in the planning and construction of
projects that will enable the public agency to meet, at a minimum,
safe drinking water standards established pursuant to Chapter 4
(commencing with Section 116275) of Part 12 of Division 104 of the
Health and Safety Code. Any grant in excess of one hundred thousand
dollars ($100,000) may be made by the department only upon the
specific approval of the Legislature, by an act enacted after the
receipt of a report filed pursuant to Section 13884.
(b) Any contract for a grant pursuant to this chapter may include
provisions as may be agreed upon by the parties thereto, and the
contract shall include, in substance, the following provisions:
(1) An estimate of the reasonable cost of the project, that may
include planning costs.
(2) An agreement by the department to grant to the public agency,
during the progress of construction or following completion of
construction as may be agreed upon by the parties, an amount that
equals the portion of construction and planning costs found by the
department to be eligible for a state grant.
(3) An agreement by the public agency, (i) to proceed
expeditiously with, and complete, the project, (ii) to commence
operation of the project upon completion thereof, and to properly
operate and maintain the project in accordance with the applicable
provisions of law, (iii) to apply for and make reasonable efforts to
secure federal assistance for the project, (iv) to secure approval of
the department and of the State Department of Health Services before
applying for federal assistance in order to maximize and best
utilize the amounts of the assistance available, and (v) to provide
for payment of the public agency's share of the cost of the project,
if any.

13883. Applications for grants under this chapter shall be made to
the department in such form and with such supporting material as may
be prescribed by the department.

13884. The department shall prepare a report on each application
pursuant to this chapter for a grant in excess of one hundred
thousand dollars ($100,000). The report shall be filed with the
Legislature, if it is in session, or if it is not in session, with
the Rules Committee of the Assembly and Senate. The department shall
be authorized to make a grant in excess of one hundred thousand
dollars ($100,000) only upon the specific approval of the grant by
the Legislature, by an act enacted after the receipt of such report
from the department.

13885. Grants may be made only for projects for domestic water
systems. The department may make reasonable allowance for future
water supply needs and may provide for additional capacity when
excessive costs would be incurred by later enlargement. Such grants
may be made for all or any part of the cost of constructing,
improving, or rehabilitating any such system when, in the judgment of
the State Department of Health Services, such improvement or
rehabilitation is necessary to provide pure, wholesome, and potable
water available in adequate quantity at sufficient pressure for
health, cleanliness, and other domestic purposes. No single public
agency shall receive grants pursuant to this chapter totaling more
than four hundred thousand dollars ($400,000). The total amount of
grants made pursuant to this chapter shall not exceed thirty million
dollars ($30,000,000), of which up to fifteen million dollars
($15,000,000) may be used for grants for projects for the
construction, improvement, or rehabilitation of domestic water
systems which have become contaminated by organic or inorganic
compounds (such as nitrates, DBCP (dibromochloropropane), TCE
(trichloroethylene), and arsenic), or radiation, in such amounts as
to render the water unfit or hazardous for human consumption.

13886. An application for a grant pursuant to this chapter shall
not be approved by the department unless the department determines
that the public agency is otherwise unable to meet minimum safe
drinking water standards established pursuant to Chapter 4
(commencing with Section 116275) of Part 12 of Division 104 of the
Health and Safety Code. No grant shall be made by the department
except upon approval by the State Department of Health Services of
project plans submitted by the applicant and upon issuance to the
public agency of a permit or amended permit as specified in Chapter 4
(commencing with Section 116275) of Part 12 of Division 104 of the
Health and Safety Code.

13887. First priority for grants shall be afforded to public
agencies having immediate health related problems, as certified by
the State Department of Health Services. Additional high priority
shall be afforded to projects to correct immediate problems, as
opposed to grants for construction of projects to meet future growth
needs.

13888. Preliminary design work, including a cost estimate for the
project, shall be completed before the grant is awarded. Operation
and maintenance costs shall be the responsibility of the public
agency and may not be considered as part of the project cost.

13889. No application for a grant may be made pursuant to this
chapter unless the public agency has also applied for a loan pursuant
to the California Safe Drinking Water Bond Law of 1976. No public
agency whose loan application has been rejected on the basis of lack
of financial need shall be eligible for a grant.
If the department has determined that the applicant is unable to
repay the full costs of a loan, the applicant may also file for a
grant. Upon receipt of a grant application, the department shall
determine that portion of the full costs that the applicant is
capable of repaying. Grant funds shall only be provided for that
portion that the applicant is not capable of repaying.

13890. Grant funds shall be expended by the public agency within
three years of the making of the grant. No grant funds may be
expended by the public agency unless the public agency is able to
demonstrate to the department, within one year of the making of the
grant, supported by an acceptable bid, that the amount to be expended
for the project will be within 20 percent of the public agency's
cost estimate for the project.

13891. For the purpose of administering the provisions of this
chapter, the total expenditures of bond proceeds by the department
and the State Department of Health Services in any fiscal year may
not exceed 3 percent of the total of the grants awarded in such
fiscal year pursuant to this chapter.

13892. The department, after public notice and hearing and with the
advice of the State Department of Health Services, shall adopt rules
and regulations necessary to carry out the purposes of this chapter.
Such rules and regulations shall be transmitted to the Legislature
within 60 days after the effective date of this chapter.