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AB-2011 CalConserve Water Conservation Retrofit Program.(2011-2012)

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AB2011:v97#DOCUMENT

Amended  IN  Assembly  April 18, 2012
Amended  IN  Assembly  March 29, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 2011


Introduced  by  Assembly Member Gatto

February 23, 2012


An act to add Section 79784.5 to the Water Code, relating to the Safe, Clean, and Reliable Drinking Water Supply Act of 2012.


LEGISLATIVE COUNSEL'S DIGEST


AB 2011, as amended, Gatto. CalConserve Water Conservation Retrofit Program.
Existing law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if approved by the voters at the November 6, 2012, statewide election, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. The act would make $250,000,000 available, upon appropriation by the Legislature from the Safe, Clean, and Reliable Drinking Water Supply Fund of 2012, for direct expenditures, grants, and loans for water conservation and water use efficiency plans, projects, and programs.
The bill would require up to $50,000,000 of those water conservation and water use efficiency funds, upon appropriation by the Legislature from the fund, to be allocated to the Department of Water Resources to establish the CalConserve Water Conservation Retrofit Program to provide grants to local water agencies for the implementation of local and regional water conservation revolving loan programs, as prescribed, to that assist customers within the service area of the water agency, consistent with the act, to carry out water use efficiency retrofit projects, consistent with the act.
This bill would become operative only if the Safe, Clean and Reliable Drinking Water Supply Act of 2012 a general obligation bond act is approved by the voters at a statewide general election. This act would be repealed on January 1, 2015.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 It is the intent of the Legislature, in requiring the establishment of the CalConserve program, to create a sustainable funding source for water use efficiency retrofits. It is the further intent of the Legislature that CalConserve help cities and counties urban retail water suppliers achieve compliance with water use reduction mandates in Section 10608.16 10608.24 of the Water Code, and help homeowners and commercial, industrial, and institutional entities voluntarily achieve compliance with state-mandated standards for water use efficiency for indoor and outdoor appliances.

SEC. 2.

 Section 79784.5 is added to the Water Code, to read:

79784.5.
 Of the funds made available in Section ____ for water conservation and water use efficiency plans, projects, and programs, upon appropriation by the Legislature from the fund, up to fifty million dollars ($50,000,000) shall be allocated to the department to establish the CalConserve Water Conservation Retrofit Program. The water conservation retrofit program shall provide grants to local water agencies for the implementation of local and regional water conservation revolving loan programs that assist customers within the service area of the water agency to carry out water use efficiency retrofit projects, consistent with Section ____, and in accordance with the following:
(a) The department shall determine the extent to which available funding shall be distributed geographically to develop program criteria to maximize local and statewide conservation and water use efficiency benefits, including, but not limited to, geographic distribution of funds and minimum requirements for local revolving loan programs to ensure the grants help create a sustainable funding source for water use efficiency retrofits.
(b) As a condition of the grant to the local water agency, the department shall require the following:
(1) (A) A local agency receiving CalConserve funds pursuant to this section shall provide not less than a 30 percent match of its funds cost share from nonstate sources to support the water conservation retrofit program.
(B) A local agency receiving funds pursuant to this section shall agree to maintain the minimum revolving loan program requirements established by the department.
(2) A local water conservation retrofit program shall maximize the local and statewide conservation and water use efficiency benefits and shall be consistent with an adopted integrated regional water management plan.
(3) An eligible retrofit project shall may include, but is not limited to, a project that implements a project in compliance with voluntarily retrofits a landscape to meet the standards of the state landscape model water efficient landscape ordinance or a local water efficient landscape ordinance adopted pursuant to subdivision (c) of Section 65595 of the Government Code.
(4) Loans for project design and construction shall be repaid over a term not longer than 15 years or the useful life of the project constructed or 15 years constructed project or installed equipment or device, whichever is shorter, and may be repaid in equal installments added to a customer’s regular bill.
(c) The department shall annually establish the interest rate for loans made pursuant to this chapter at 50 percent of the average interest rate, computed by the true interest cost method paid by the state on general obligation bonds issued in the prior calendar year.
(d) The local water agency may charge a reasonable administration fee to be paid along with the capital and interest on the loan over the lifetime of the loan.

SEC. 3.

 (a) This act shall become operative only if the Safe, Clean, and Reliable Drinking Water Supply Act of 2012 is Section ___ is added to the Water Code by a general obligation bond act approved by the voters at a statewide general election.
(b) This act shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.