SECTIONS 78670-78676 - California Statutes

WATER CODE

SECTION 78670-78676

78670. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) (1) "Groundwater recharge facilities" means land and
facilities for artificial groundwater recharge through methods which
include, but are not limited to, percolation using basins, pits,
ditches and furrows, modified streambed, flooding, and well injection
and in-lieu recharge. "Groundwater recharge facilities" also means
capital outlay expenditures to expand, renovate, or restructure land
and facilities already in use for the purpose of groundwater recharge
and to acquire additional land for retention and detention basins.
(2) Groundwater recharge facilities may include any of the
following:
(A) Instream facilities for regulation of water levels, but not
regulation of streamflow to accomplish diversion from the waterway.
(B) Agency-owned facilities for extraction.
(C) Conveyance facilities to the recharge site, including devices
for flow regulation and measurement of recharge waters.
(3) Any part or all of the project facilities, including the land
under the facilities, may consist of the separable features, or an
appropriate share of multipurpose features, of a larger system, or
both.
(b) "In-lieu recharge" means accomplishing increased storage of
groundwater by providing interruptible surface water to a user who
relies on groundwater as a primary supply, to accomplish groundwater
storage through the direct use of that surface water in lieu of
pumping groundwater. In-lieu recharge is used instead of continuing
pumping while artificially recharging with the interruptible surface
waters. However, bond proceeds may not be used to purchase surface
water for use in lieu of pumping groundwater.
(c) "Local agency" or "agency" means any city, county, district,
joint powers authority, or other political subdivision of the state
involved with water management.
(d) "Project" means both of the following:
(1) Groundwater recharge facilities.
(2) Voluntary, cost-effective capital outlay water conservation
programs.
(e) "Subaccount" means the Water Conservation and Groundwater
Recharge Subaccount created by Section 78671.
(f) (1) "Voluntary, cost-effective capital outlay water
conservation programs" mean those feasible capital outlay measures to
improve the efficiency of water use through programs, the benefits
of which exceed their costs.
(2) (A) The programs include, but are not limited to, all of the
following:
(i) The lining or piping of ditches.
(ii) Improvements in water distribution system controls such as
automated canal control, construction of small reservoirs within
distribution systems that conserve water that has already been
captured for use, and related physical improvements.
(iii) Tailwater pumpback recovery systems.
(iv) Major improvements or replacements of distribution systems to
reduce leakage.
(v) Capital changes in on-farm irrigation systems which improve
irrigation efficiency such as sprinkler or subsurface drip.
(vi) Capital outlay features of urban water conservation programs
identified in the "Memorandum of Understanding Regarding Urban Water
Conservation in California," as amended on March 9, 1994.
(vii) Conveyance facilities in a county of the third class,
including appurtenances, necessary to implement a long-term
conservation program to transfer conserved water from areas not
directly receiving water from the bay-delta to areas that receive
water from the bay-delta and whose demands on the bay-delta would be
reduced as a result of the transfer.
(B) In each case, the department shall determine if there is a net
savings of water as a result of each proposed project and the
project is cost-effective.

78671. (a) There is hereby created in the account the Water
Conservation and Groundwater Recharge Subaccount. The sum of thirty
million dollars ($30,000,000) is hereby transferred from the account
to the subaccount.
(b) Notwithstanding Section 13340 of the Government Code, the sum
of twenty-five million dollars ($25,000,000) is hereby continuously
appropriated, without regard to fiscal years, to the department, for
loans to local agencies to aid in the acquisition and construction of
voluntary, cost-effective capital outlay water conservation programs
and groundwater recharge facilities.

78672. Any loan contract entered into pursuant to this article may
include provisions determined to be necessary by the department.

78672.5. (a) Any loan contract concerning an eligible, voluntary,
cost-effective capital outlay water conservation program shall be
supported by, or shall include, all of the following:
(1) An estimate of the reasonable cost and benefit of the program.
(2) An agreement by the local agency to proceed expeditiously
with, and complete, the program.
(3) A provision that there shall be no moratorium or deferment on
payments of principal or interest.
(4) A loan period of not more than 20 years with an interest rate
set 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. 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. 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.
(5) A provision that the project shall not receive any more than
five million dollars ($5,000,000) in loan proceeds from the
department.
(b) The department shall give preference for loans under this
section on the basis of the cost-effectiveness of the proposed
project, with the most cost-effective projects receiving the highest
preference.

78673. (a) Any loan contract concerning an eligible project for
groundwater recharge shall be supported by, or shall include, all of
the following:
(1) A finding by the department that the agency has the ability to
repay the requested loan, that the project is economically
justified, and that the project is feasible from an engineering and
hydrogeologic viewpoint.
(2) An estimate of the reasonable cost and benefit of the project,
including a feasibility report which shall set forth the economic
justification and the engineering, hydrogeologic, and financial
feasibility of the project, and shall include explanations of the
proposed facilities and their relation to other water-related
facilities in the basin or region.
(3) An agreement by the agency to proceed expeditiously to
complete the project in conformance with the approved plans and
specifications and the feasibility report and to operate and maintain
the project properly upon completion throughout the repayment
period.
(4) A provision that there shall be no moratorium or deferment on
payment of principal or interest.
(5) A loan period of not more than 20 years with an interest rate
set 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. 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. 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.
(6) A provision that the project shall not receive more than five
million dollars ($5,000,000) in loan proceeds from the department.
(b) The department shall give preference under this section to
projects for groundwater recharge that are located in overdrafted
groundwater basins and those projects of critical need, to projects
whose feasibility studies show the greatest economic justification
and the greatest engineering and hydrogeologic feasibility as
determined by the department, and to projects located in areas which
have existing water management programs.

78674. The department may make loans to local agencies, at the
interest rates authorized under this article and under any terms and
conditions as may be determined necessary by the department, for the
purposes of financing feasibility studies of projects potentially
eligible for funding under this article. No single project shall be
eligible to receive more than one hundred thousand dollars
($100,000), and not more than 3 percent of the total amount of bonds
authorized to be expended for purposes of this article may be
expended for the purposes of financing feasibility studies. A loan
for a feasibility study shall not decrease the maximum amount of any
other loan which may be made under this article.

78675. Unallocated funds remaining in the subaccount on March 8,
2000, 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 Conservation Account in the Safe Drinking
Water, Clean Water, Watershed Protection, and Flood Protection Bond
Fund for the purposes of entering into additional loans under Article
3 (commencing with Section 79157) and Article 4 (commencing with
Section 79161) of Chapter 8 of Division 26.

78675.5. Notwithstanding Section 13340 of the Government Code, the
sum of five million dollars ($5,000,000) in the subaccount is hereby
continuously appropriated, without regard to fiscal years, to the
department for a grant to a local agency for the development of
supplemental water sources, distribution systems, and recharge
facilities in a watershed that is in a state of overdraft and whose
ability to locally finance the facilities has been adversely affected
by the Base Closure and Realignment Act of 1990 (P.L. 101-510).

78676. Not more than 3 percent of the total amount deposited in the
subaccount may be used to pay the costs incurred in connection with
the administration of this article.