Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
This chapter shall be known and may be cited as the Clean Water Bond Law of 1984.
Chapter 15 - Clean Water Bond Law of 1984
California Water Code — §§ 13999-13999.19
Sections (12)
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
The Legislature finds and declares as follows:
(a)Clean water is essential to the public health, safety, and welfare.
(b)Clean water fosters the beauty of California’s environment, the expansion of industry and agriculture, maintains fish and wildlife, and supports recreation.
(c)California’s abundant lakes and ponds, streams and rivers, coastline, and groundwater are threatened with pollution, which could threaten public health and impede economic and social growth if left unchecked.
(d)The state’s growing population has increasing needs for clean water supplies and adequate treatment facilities.
(e)It is of paramount importance that the limited water resources of the state be protected from pollution, conserved, and reclaimed whenever possible to ensure continued economic, community, and social growth.
(f)The chief cause of water pollution is the discharge of inadequately treated waste into the waters of the state.
(g)Local agencies have the primary responsibility for construction, operation, and maintenance of facilities to cleanse our waters.
(h)Rising costs of construction and technological changes have pushed the cost of constructing treatment facilities beyond the reach of local agencies alone.
(i)Because water knows no political boundaries, it is desirable for the state to contribute to construction of these facilities in order to meet its obligations to protect and promote the health, safety, and welfare of its people and environment.
(j)Voluntary, cost-effective capital outlay water conservation programs can help meet the growing demand for clean water supplies.
(k)(1) It is the intent of this chapter to provide necessary funds to ensure the full participation by the state under the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.) and any acts amendatory thereof or supplementary thereto.
(2)It is also the intent of this chapter to provide special assistance to small communities to construct facilities necessary to eliminate water pollution and public health hazards.
(3)It is the further intent of this chapter to provide funds for state participation in the financing of the development and implementation of programs and systems for water reclamation.
(4)It is the further intent of this chapter to provide funds for voluntary, cost-effective capital outlay water conservation programs cooperatively carried out by public agencies and the department.
Amended by Stats. 1988, Ch. 47, Sec. 6. Amendment approved in Proposition 83 at the November 8, 1988, election. Note: This section was added by Stats. 1984, Ch. 377, and approved in Prop. 25 on Nov. 6, 1984.
(a)The sum of twenty-five million dollars ($25,000,000) of the money in the fund shall be deposited in the Water Reclamation Account and is appropriated for loans to municipalities for eligible water reclamation projects which will provide water for beneficial uses.
The board may loan a municipality up to 100 percent of the total eligible costs of design and construction of a reclamation project.
(b)Any contract for an eligible water reclamation project entered into pursuant to this section may include such provisions as determined by the board and shall include both of the following provisions:
(1)An estimate of the reasonable cost of the eligible water reclamation project.
(2)An agreement by the municipality to proceed expeditiously with, and complete, the eligible water reclamation project; commence operation of the project in accordance with applicable provisions of law; provide for payment of the municipality’s share of the cost of the project, including principal and interest on any state loan made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance, other than that available pursuant to the federal Clean Water Act, for the state-assisted project.
(c)Loan contracts may not provide for a moratorium on payments of principal or interest.
(d)(1) Any loans made from the Water Reclamation Account shall be for a period of up to 25 years . The interest rate for the loans shall be 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, with that rate to be computed according to the true interest cost method. When 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.
(2)All principal and interest from loans shall be returned to the Water Reclamation Account for new loans.
(e)Funds available under this section may be used for loans pursuant to subdivisions (f), (g), and (h) of Section 13999.8 if the Clean Water Construction Grant Account is depleted. All principal and interest on any such loans shall be repaid to the Water Reclamation Account.
(f)No single project may receive more than ten million dollars ($10,000,000) from the board.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
(a)Ten million dollars ($10,000,000) of the money in the fund shall be deposited in the Water Conservation Account and shall be available for appropriation by the Legislature for loans to municipalities to aid in the conduct of voluntary, cost-effective capital outlay water conservation programs and the purposes set forth in this section. Notwithstanding subdivision (e) of Section 13999.5 and subdivision (f) of this section, all of the funds deposited in the Water Conservation Account by this subdivision shall be available for water conservation programs. None of the funds deposited in the Water Conservation Account by this subdivision shall be expended for costs of administration.
(b)Any contract entered into pursuant to this section may include provisions as may be determined by the department. However, any contract concerning an eligible, voluntary, cost-effective capital outlay water conservation program shall include, in substance, all of the following:
(1)An estimate of the reasonable cost and benefit of the program.
(2)An agreement by the public agency to proceed expeditiously with, and complete, the program.
(c)Loan contracts may not provide a moratorium on payments of principal or interest.
(d)Any loans made from the Water Conservation Account shall be for a period of up to 25 years with an interest rate set annually by the board at 50 percent of the average interest rate paid by the state on general obligation bonds in the calendar year immediately preceding the year in which the loan agreement is executed. All principal and interest from loans shall be deposited in the Water Conservation Account for new obligations.
(e)No single project may receive more than five million dollars ($5,000,000) from the department.
(f)As approved by the Legislature annually in the Budget Act, the department may expend up to 5 percent of the funds in the Water Conservation Account for the administration of this section.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
Except as expressly provided in this chapter, no 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.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
There is hereby appropriated from the General Fund in the State Treasury for the purpose of this chapter an amount equal to the sum of the following:
(1)The sum necessary annually to pay the principal of and the interest on the bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable.
(2)The sum necessary to carry out Section 13999.14 which is appropriated without regard to fiscal years.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
For the purpose of carrying out 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 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 money made available under this section to the board or department shall be returned to the General Fund from money received from the sale of bonds. The withdrawals from the General Fund shall be returned to the General Fund with interest at the rate which would have otherwise been earned by those sums in the Pooled Money Investment Fund.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
Upon request of the board or department, the committee shall determine whether or not it is necessary or desirable to issue bonds authorized under this chapter in order to make those arrangements, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to make those arrangements progressively, and it shall not be necessary that all of the bonds authorized to be issued shall be sold at any one time.
Added by Stats. 1984, Ch. 377, Sec. 1. Approved in Proposition 25 at the November 6, 1984, election.
The committee may authorize the Treasurer to sell all or any part of the bonds at times fixed by the Treasurer.
Added by Stats. 1988, Ch. 47, Sec. 8. Approved in Proposition 83 at the November 8, 1988, election.
Notwithstanding any other provision of this chapter, and as approved by the Legislature, the board may share in the cost of the construction of treatment works under subdivision (b) of Section 510 of the Federal Water Quality Act of 1987. That participation may be approved only if the board determines that treatment works in Mexico, in conjunction with any defensive treatment works constructed under the Federal Water Pollution Control Act, are not sufficient to protect the residents of the City of San Diego and surrounding areas, including Imperial County, from water pollution originating in Mexico. No project in which the board participates shall receive more than ten million dollars ($10,000,000) in loan proceeds from the board.
Added by Stats. 1991, Ch. 652, Sec. 37.
Notwithstanding Section 13999.17 or 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.