SECTIONS 13970-13983 - California Statutes

WATER CODE

SECTION 13970-13983

13970. This chapter may be cited as the Clean Water Bond Law of
1970.

13971. The Legislature hereby finds and declares that clean water,
which fosters the health of the people, the beauty of their
environment, the expansion of industry and agriculture, the
enhancement of fish and wildlife, the improvement of recreational
facilities and the provision of pure drinking water at a reasonable
cost, is an essential public need. Although the State of California
is endowed with abundant lakes and ponds, streams and rivers, and
hundreds of miles of shoreline, as well as large quantities of
underground water, these vast water resources are threatened by
pollution, which, if not checked, will impede the state's economic,
community and social growth. The chief cause of pollution is the
discharge of inadequately treated waste into the waters of the state.
Many public agencies have not met the demands for adequate waste
treatment or the control of water pollution because of inadequate
financial resources and othe responsibilities. Increasing population
accompanied by accelerating urbanization, growing demands for water
of high quality, rising costs of construction and technological
changes mean that unless the state acts now the needs may soar beyond
the means available for public finance. Meeting these needs is a
proper purpose of the federal, state and local governments. Local
agencies, by reason of their closeness to the problem, should
continue to have primary responsibility for construction, operation
and maintenance of the facilities necessary to cleanse our waters.
Since water pollution knows no political boundaries and since the
cost of eliminating the existing backlog of needed facilities and of
providing additional facilities for future needs will be beyond the
ability of local agencies to pay, the state, to meet its
responsibility to protect and promote the health, safety and welfare
of the inhabitants of the state, should assist in the financing. The
federal government is contributing to the cost of control of water
pollution, and just provision should be made to cooperate with the
United States of America. It is the intent of this chapter to provide
necessary funds to insure the full participation by the state under
the provisions of Section 8 of the Federal Water Pollution Control
Act (33 U.S.C. 466 et seq.) and acts amendatory thereof or
supplementary thereto.

13972. The State General Obligation Bond Law is adopted for the
purpose of the issuance, sale, and repayment of, and otherwise
providing with respect to, the bonds authorized to be issued by this
chapter, and the provisions of that law are included in this chapter
as though set out in full in this chapter except that notwithstanding
anything in the State General Obligation Bond Law, the bonds
authorized hereunder shall bear such rates of interest, or maximum
rates, as may from time to time be fixed by the State Treasurer, with
the approval of the committee, and the maximum maturity of the bonds
shall not exceed 50 years from the date of the bonds, or from the
date of each respective series. The maturity of each respective
series shall be calculated from the date of such series.

13973. As used in this chapter, and for the purposes of this
chapter as used in the State General Obligation Bond Law, the
following words shall have the following meanings:
(a) "Committee" means the Clean Water Finance Committee, created
by Section 13974.
(b) "Board" means the State Water Resources Control Board.
(c) "Fund" means the State Clean Water Fund.
(d) "Municipality" shall have the same meaning as in the Federal
Water Pollution Control Act (33 U.S.C. 1151 et seq.) and acts
amendatory thereof or supplementary thereto and shall also include
the state or any agency or department thereof.
(e) "Treatment works" shall have the same meaning as in the
Federal Water Pollution Control Act (33 U.S.C. 1151 et seq.) and acts
amendatory thereof or supplementary thereto.
(f) "Construction" shall have the same meaning as in the Federal
Water Pollution Control Act (33 U.S.C. 1151 et seq.) and acts
amendatory thereof or supplementary thereto.
(g) "Eligible project" means a project for the construction of
treatment works which is all of the following:
(1) Eligible for federal assistance, whether or not federal funds
are then available therefor;
(2) Necessary to prevent water pollution;
(3) Certified by the board as entitled to priority over other
treatment works, and which complies with applicable water quality
standards, policies and plans.
(h) "Federal assistance" means funds available to a municipality
either directly or through allocation by the state, from the federal
government as grants for construction of treatment works, pursuant to
Section 8 of the Federal Water Pollution Control Act, and acts
amendatory thereof.

13974. The Clean Water Finance Committee is hereby created. The
committee shall consist of the Governor or his designated
representative, the State Controller, the State Treasurer, the
Director of Finance, and the chairman of the board. The executive
officer of the board shall serve as a member of the committee in the
absence of the chairman. Said committee shall be the "committee" as
that term is used in the State General Obligation Bond Law.

13975. The committee is hereby authorized and empowered to create a
debt or debts, liability or liabilities, of the State of California,
in the aggregate amount of two hundred fifty million dollars
($250,000,000), in the manner provided in this chapter. Such debt or
debts, liability or liabilities, shall be created for the purpose of
providing the fund to be used for the object and work specified in
Section 13976.

13976. (a) The moneys in the fund shall be used for the purposes
set forth in this section.
(b) The board is authorized to enter into contracts with
municipalities having authority to construct, operate and maintain
treatment works, for grants to such municipalities to aid in the
construction of eligible projects, and for reclamation of water.
Grants may be made pursuant to this section to reimburse
municipalities for construction for which contracts were let
subsequent to July 1, 1970, and before the first sale of bonds
authorized to be issued by this chapter.
Any contract pursuant to this section may include such provisions
as may be agreed upon by the parties thereto, and any such contract
concerning an eligible project shall include, in substance, the
following provisions:
(1) An estimate of the reasonable cost of the eligible project;
(2) An agreement by the board to pay to the municipality, during
the progress of construction or following completion of construction
as may be agreed upon by the parties, an amount which equals at least
12 1/2 percent of the eligible project cost determined pursuant to
federal and state laws, and regulations. Notwithstanding the
provisions of any existing agreements entered into pursuant to this
subdivision, the board shall pay to the municipality under any
contract entered into pursuant to this subdivision for a project for
which the federal grant offer was made on or after October 18, 1972,
an amount which equals 12 1/2 percent of the eligible project cost
determined pursuant to federal and state law and regulations;
(3) An agreement by the municipality, (i) to proceed expeditiously
with, and complete, the eligible project, (ii) to commence operation
of the treatment works on completion thereof, and to properly
operate and maintain such works in accordance with applicable
provisions of law, (iii) to apply for and make reasonable efforts to
secure federal assistance for the eligible project, (iv) to secure
the approval of the board before applying for federal assistance in
order to maximize the amounts of such assistance received or to be
received for all eligible projects in the state, and (v) to provide
for payment of the municipality's share of the cost of the eligible
project.
(c) The board may make direct grants to any municipality or by
contract or otherwise undertake plans, surveys, research, development
and studies necessary, convenient or desirable to the effectuation
of the purposes and powers of the board pursuant to this division and
to prepare recommendations with regard thereto, including the
preparation of comprehensive statewide or areawide studies and
reports on the collection, treatment and disposal of waste under a
comprehensive cooperative plan.
The aggregate amount of moneys which may be advanced or granted to
or committed to municipalities for the purpose of planning, research
and development, whether by the board or under the direction of the
board or in the form of direct grants to municipalities for such
purpose, shall not exceed in the aggregate such amount as may be
fixed from time to time by the committee.
(d) The board may from time to time with the approval of the
committee transfer moneys in the fund to the State Water Quality
Control Fund to be available for loans to public agencies pursuant to
Chapter 6 (commencing with Section 13400) of this division.
(e) Not more than one-half of 1 percent of the moneys deposited in
the fund may be expended by the board for costs incurred in
administering the provisions of this chapter.
(f) As much of the moneys in the fund as is necessary shall be
used to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code.
(g) The board may with the approval of the committee transfer not
more than ten million dollars ($10,000,000) from the fund to a
special reserve fund as additional security for the payment of the
principal of and the interest on revenue bonds sold by the state as
provided by law to provide funds to municipalities for needed sewage
facilities. Such money shall be used for such purpose only after all
other securities provided by law have been exhausted. Any money not
used for such purpose shall, after retirement of the revenue bonds,
be returned to the fund and be available for other purposes provided
for in this section.
(h) The board may adopt rules and regulations governing the making
and enforcing of contracts pursuant to this section.

13977. All bonds herein authorized, which shall have been duly sold
and delivered as herein provided, shall constitute valid and legally
binding general obligations of the State of California, and the full
faith and credit of the State of California is hereby pledged for
the punctual payment of both principal and interest thereon.
There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the state, as shall be required to pay
the principal and interest on said bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collection of said revenue, to do and perform each
and every act which shall be necessary to collect said additional
sum.
All money deposited in the fund which has been derived from
premium and accrued interest on bonds sold shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.

13978. All money deposited in the fund pursuant to any provision of
law requiring repayments to the state for assistance financed by the
proceeds of the bonds authorized by this chapter shall be available
for transfer to the General Fund. When transferred to the General
Fund such money shall be applied as a reimbursement to the General
Fund on account of principal and interest on the bonds which has been
paid from the General Fund.

13979. There is hereby appropriated from the General Fund in the
State Treasury for the purpose of this chapter such an amount as will
equal the following:
(a) Such sum annually as will be necessary to pay the principal of
and the interest on the bonds issued and sold pursuant to the
provisions of this chapter, as said principal and interest become due
and payable.
(b) Such sum as is necessary to carry out the provisions of
Section 13980, which sum is appropriated without regard to fiscal
years.

13980. For the purpose of carrying out the provisions of this
chapter, the Director of Finance may by executive order authorize the
withdrawal from the General Fund of an amount or amounts not to
exceed the amount of the unsold bonds which the committee has by
resolution authorized to be sold for the purpose of carrying out this
chapter. Any amounts withdrawn shall be deposited in the fund and
shall be disbursed by the board in accordance with this chapter. Any
moneys made available under this section to the board shall be
returned by the board to the General Fund from moneys received from
the sale of bonds sold for the purpose of carrying out this chapter.

13980.5. Notwithstanding any other provision of this bond act, or
of the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), if the Treasurer sells bonds pursuant to this bond act that
include a bond counsel opinion to the effect that the interest on the
bonds is excluded from gross income for federal tax purposes under
designated conditions, the Treasurer may maintain separate accounts
for the bond proceeds invested and the investment earnings on those
proceeds, and may use or direct the use of those proceeds or earnings
to pay any rebate, penalty, or other payment required under federal
law, or take any other action with respect to the investment and use
of those bond proceeds, as may be required or desirable under federal
law in order to maintain the tax-exempt status of those bonds and to
obtain any other advantage under federal law on behalf of the funds
of this state.

13981. Upon request of the board, supported by a statement of the
proposed arrangements to be made pursuant to Section 13976 for the
purposes therein stated, the committee shall determine whether or not
it is necessary or desirable to issue any bonds authorized under
this chapter in order to make such arrangements, and, if so, the
amount of bonds then to be issued and sold. Successive issues of
bonds may be authorized and sold to make such arrangements
progressively, and it shall not be necessary that all of the bonds
herein authorized to be issued shall be sold at any one time.

13982. The committee may authorize the State Treasurer to sell all
or any part of the bonds herein authorized at such time or times as
may be fixed by the State Treasurer.

13983. All proceeds from the sale of bonds, except those derived
from premiums and accrued interest, shall be available for the
purpose provided in Section 13976, but shall not be available for
transfer to the General Fund to pay principal and interest on bonds.
The money in the fund may be expended only as herein provided.