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AB-2541 Safe Drinking Water State Revolving Fund: project financing: severely disadvantaged communities.(2017-2018)

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Date Published: 08/28/2018 09:00 PM
AB2541:v96#DOCUMENT

Assembly Bill No. 2541
CHAPTER 217

An act to amend Section 116760.50 of the Health and Safety Code, relating to water quality.

[ Approved by Governor  August 27, 2018. Filed with Secretary of State  August 27, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2541, Salas. Safe Drinking Water State Revolving Fund: project financing: severely disadvantaged communities.
Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards. Existing law authorizes the State Water Resources Control Board, to the extent permitted by federal law, to provide grant funding, and principal forgiveness and 0% financing on loans, from the Safe Drinking Water State Revolving Fund to a project for a water system with a service area that qualifies as a severely disadvantaged community if the water system demonstrates that repaying a Safe Drinking Water State Revolving Fund loan with interest would result in unaffordable water rates, as defined.
This bill would instead authorize the board, to the extent permitted by federal law, to provide up to 100% grant funding, and principal forgiveness and 0% financing on loans, from the Safe Drinking Water State Revolving Fund to a project for a water system that serves a severely disadvantaged community.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 116760.50 of the Health and Safety Code is amended to read:

116760.50.
 (a) The board shall establish eligibility criteria for project financing pursuant to this chapter that shall be consistent with federal requirements.
(b) To the extent permitted by federal law, the board may provide up to 100 percent grant funding, and principal forgiveness and 0 percent financing on loans, from the Safe Drinking Water State Revolving Fund to a project for a water system that serves a severely disadvantaged community.