Today's Law As Amended

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AB-118 Safe Drinking Water State Revolving Fund.(2013-2014)



SECTION 1.

 Section 116761.20 of the Health and Safety Code is amended to read:

116761.20.
 (a) Planning and preliminary engineering studies, project design, and construction costs incurred by a community water system or  community and  not-for-profit noncommunity public  water system systems  may be funded under this chapter. chapter by loans, and, if these systems are owned by public agencies or private not-for-profit water companies, by grants or a combination of grants and loans. 
(b) (1) The board department  shall determine what portion of the full costs the water system public agency or private not-for-profit water company  is capable of repaying and authorize funding in the form of a loan or other repayable financing  for that amount. The board may department shall  authorize a grant or principal forgiveness to a system eligible under subdivision (a) that serves a disadvantaged community and  only to the extent the board department  finds the water system public agency or not-for-profit water company  is unable to repay the full costs of the financing. a loan. 
(2) Where the otherwise eligible water system is a water corporation regulated by the Public Utilities Commission, principal forgiveness shall be limited to capital improvements made by a water system serving disadvantaged communities with fewer than 3,300 service connections, and the board shall incorporate consideration of the water system’s rate of return for the three fiscal years before the timeframe in which the board is considering financial assistance.
(3) (2)  Where an otherwise eligible water system is not a water corporation described in paragraph (2) and serves Notwithstanding any other provision of this chapter, a small community water system or nontransient noncommunity water system that is owned by a public agency or a private not-for-profit water company and serving  a severely disadvantaged community with fewer than 200 service connections, the water system community,  is deemed to have no ability to repay any financing for a project serving the severely disadvantaged community. a loan.  
(c) At the request of the board, department,  the Public Utilities Commission shall submit comments concerning the ability of water systems,  suppliers,  subject to its jurisdiction, to finance the project from other sources and to repay the financing. loan. 

SEC. 2.

 Section 116761.23 of the Health and Safety Code is amended to read:

116761.23.
 (a) The maximum amount of a planning grant permitted under this chapter for each participating public water system’s share of the costs of the planning, engineering studies, environmental documentation, and design of a single project shall be no more than five hundred thousand dollars ($500,000).
(b) Unless the department approves an increase pursuant to this subdivision, the maximum amount of a construction grant award authorized under this chapter to each participating public water system for its share of the cost of the construction of a single project shall be no more than three million dollars ($3,000,000). The department may approve an increase in the maximum amount for a construction grant award authorized under this chapter so that the maximum amount of the construction grant award does not exceed ten million dollars ($10,000,000) only if the department makes all of the following findings:
(1) A public water system that serves a disadvantaged community has a defined project need that exceeds the maximum grant amount of three million dollars ($3,000,000).
(2) The defined project has been bypassed in at least one funding cycle due to a lack of funds.
(3) The defined project is eligible for funding pursuant to the program regulations.
(4) The defined project represents the highest public health risk among unfunded projects, as determined by the department according to its standard criteria.
(c) Total funding under this article for planning, engineering studies, environmental documentation, project design, and construction costs of a single project, whether in the form of a loan or a grant, or both, shall be determined by an assessment of affordability using criteria established by the department.
(d) Subject to all other limitations of this chapter, a small community water system or nontransient noncommunity water system, owned by a public agency or private not-for-profit water company, serving severely disadvantaged communities shall be eligible to receive up to 100 percent of eligible project costs in the form of a grant, to the extent the system cannot afford a loan as determined by the department pursuant to Section 116761.20.
(e) Subject to the availability of funds and the applicant’s ability to repay, an applicant may receive up to the full cost of the project in the form of a loan bearing interest at the rate established pursuant to subdivision (a) of Section 116761.65.