SECTIONS 78620-78630 - California Statutes

WATER CODE

SECTION 78620-78630

78620. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) "Eligible recycling project" means a water reclamation project
that meets applicable reclamation criteria and water reclamation
requirements and that complies with applicable water quality
standards, policies, and plans.
(b) "Subaccount" means the Water Recycling Subaccount created by
Section 78621.

78621. (a) (1) There is hereby created in the account the Water
Recycling Subaccount. The sum of sixty million dollars ($60,000,000)
is hereby transferred from the account to the subaccount for the
purpose of implementing this article.
(2) All money repaid to the state pursuant to any contract
executed under the Clean Water and Water Reclamation Bond Law of 1988
(Chapter 17 (commencing with Section 14050) of Division 7) shall be
deposited in the Water Recycling Subaccount in the Clean Water and
Water Recycling Account in the Safe Drinking Water, Clean Water,
Watershed Protection, and Flood Protection Bond Fund created by
Section 79136, for the purposes set forth in Article 4 (commencing
with Section 79135) of Chapter 7 of Division 26.
(b) Notwithstanding Section 13340 of the Government Code, the
money in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the board for loans to public agencies to
construct, operate, and maintain eligible recycling projects, for
loans to aid in the design and construction of eligible recycling
projects, for grants in accordance with Section 78628, and for the
purposes described in Section 78629 and subdivision (a) of Section
78630.

78622. The board may enter into contracts to make loans to public
agencies for the purposes set forth in this article. Factors to be
considered by the board in determining whether to enter into a
contract under this article may include, but are not limited to,
whether the project is cost-effective or necessary to protect water
quality.

78623. Any contract for a loan entered into pursuant to Section
78622 may include those provisions determined by the board to be
necessary for purposes of this chapter and shall include both of the
following provisions:
(a) An estimate of the reasonable cost of the eligible recycling
project.
(b) An agreement by the public agency to proceed expeditiously
with, and complete, the eligible recycling project, commence
operation of the project in accordance with applicable provisions of
law, and provide for the payment of the public agency's share of the
cost of the project, including the principal of, and interest on, the
loan.

78624. (a) A contract for a loan may not provide for a moratorium
on the payment of the principal of, or interest on, the loan.
(b) Any loan made pursuant to Section 78622 shall be for a period
not to exceed 20 years.
(c) The board may enter into a contract for a loan of up to 100
percent of the total eligible cost of design and construction of an
eligible recycling project.

78625. (a) The board shall establish the interest rate for a loan
made pursuant to this article at a rate equal to 50 percent of the
interest rate paid by the state on the most recent sale of state
general obligation bonds, to be computed according to the true
interest cost method.
(b) If the interest rate so determined is not a multiple of
one-tenth of 1 percent, the interest rate shall be set at the next
higher multiple of one-tenth of 1 percent.
(c) The interest rate set for each contract shall be applied
throughout the repayment period of the contract. There shall be a
level annual repayment of principal and interest on the loans.

78626. Unallocated funds remaining in the subaccount on March 8,
2000, and any funds deposited into the subaccount after that date,
shall be transferred to, and all money repaid to the state pursuant
to any loan contract executed under this article shall be deposited
in, the Water Recycling Subaccount in the Clean Water and Water
Recycling Account in the Safe Drinking Water, Clean Water, Watershed
Protection, and Flood Protection Bond Fund for the purposes set forth
in Section 79140.

78627. All interest earned by assets in the subaccount shall be
deposited in the subaccount.

78628. The board may make grants to public agencies for facility
planning studies for water reclamation projects. The amount of the
grants may not exceed seventy-five thousand dollars ($75,000) per
study.

78629. The board may, by contract or otherwise, undertake plans,
surveys, research, development, and studies necessary, convenient, or
desirable to carry out the purposes of this article, and may prepare
recommendations with regard thereto, including the preparation of
comprehensive statewide or areawide studies and reports on water
recycling and the collection, treatment, disposal, and distribution
of wastewater under a comprehensive cooperative plan.

78630. Not more than 3 percent of the total amount deposited in the
subaccount may be used to pay for both of the following purposes:
(a) To pay the costs incurred in connection with the
administration of this article.
(b) For the purposes of Section 78629.