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AB-339 State Water Pollution Cleanup and Abatement Account.(2017-2018)

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Date Published: 10/04/2017 02:00 PM
AB339:v96#DOCUMENT

Assembly Bill No. 339
CHAPTER 439

An act to amend Section 13441 of, to amend and repeal Section 13442 of, and to add Section 13442.5 to, the Water Code, relating to water, and making an appropriation therefor.

[ Approved by Governor  October 03, 2017. Filed with Secretary of State  October 03, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 339, Mathis. State Water Pollution Cleanup and Abatement Account.
The Porter-Cologne Water Quality Control Act grants to the State Water Resources Control Board and the California regional water quality control boards the authority to regulate water quality in the state. The act creates the State Water Pollution Cleanup and Abatement Account in the State Water Quality Control Fund and continuously appropriates moneys in the account to the state board for the purposes of cleaning up waste or abating its effects on state waters. Existing law, until July 1, 2018, authorizes the state board to pay these moneys from the account to, among others, a community water system that services a disadvantaged community to be used to assist in addressing urgent drinking water need, among other purposes.
This bill would limit the above-described payments to grants, and would delete the July 1, 2018, sunset date. By extending the term of an existing appropriation, this bill would make an appropriation. The bill would authorize the state board, upon application by a public agency, a not-for-profit organization, or community water system, to make funds available from the account for a loan to that entity to assist in cleaning up the waste, abating the effects of a waste, or addressing an urgent drinking water need, as provided. By authorizing new expenditures from a continuously appropriated account, this bill would make an appropriation. The bill would require that the loan be secured by adequate collateral and would prohibit the term of the loan from exceeding 10 years. The bill would exempt projects that are funded by the loan from certain state contracting and procurement requirements, and would require the state board to adopt guidelines for the allocation and administration of loans from the account.
The act requires all moneys collected civilly under the act and all moneys collected by the state board in connection with a specified cleanup or abatement action to be deposited in the account.
This bill would require all of the following to be deposited into the account: (1) moneys collected by the state board or regional board for the account pursuant to specific underground storage tank provisions; (2) moneys collected by the state board for the account under provisions allowing recovery of costs for cleanup, abatement of waste, pollution, or contamination of water; (3) repayments of principal, interest, and fees on loans issued for purposes of the account; (4) repayments of loan and grant moneys paid to a loan or grant recipient for purposes of the account in which the recipient was not eligible for the loan or grant; and (5) interest earned upon moneys in the account. By requiring additional moneys to be deposited into a continuously appropriated account, this bill would make an appropriation.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 13441 of the Water Code is amended to read:

13441.
 (a) There is to be paid into the account all moneys from the following sources:
(1) All moneys appropriated by the Legislature for the account.
(2) All moneys contributed to the account by any person and accepted by the state board.
(3) Except as otherwise provided, one-half of all moneys collected by way of criminal penalty and all moneys collected civilly under any proceeding brought pursuant to any provision of this division.
(4) All moneys collected by the state board or a regional board for the account under Chapter 6.7 (commencing with Section 25280) of Division 20 of the Health and Safety Code.
(5) All moneys collected by the state board for the account under Section 13304 or for the account under other law allowing recovery of costs for cleanup or abatement of waste, pollution, or contamination.
(6) Repayment of principal, interest, and fees on loans issued pursuant to this article.
(7) Repayments of loan and grant moneys paid to a loan or grant recipient pursuant to this article in which the recipient was not eligible for that loan or grant.
(8) Notwithstanding Sections 16305.7 and 16475 of the Government Code, any interest earned upon moneys deposited into the account.
(b) The first unencumbered five hundred thousand dollars ($500,000) paid into the account in any given fiscal year is available without regard to fiscal years, for expenditure by the state board in accordance with the provisions of this article. The next unencumbered five hundred thousand dollars ($500,000), or any portion thereof, deposited in any given fiscal year, is available for expenditure by the state board for the purposes of this article, subject to the provisions set forth in Section 28 of the Budget Act of 1984 (Chapter 258 of the Statutes of 1984). The next unencumbered one million dollars ($1,000,000) deposited in the account in any given fiscal year is available for expenditure by the state board for the purposes of Section 13443. The remaining unencumbered funds deposited in the account in any given fiscal year is available without regard to fiscal years to the state board for expenditure for the purposes set forth in Sections 13442 and 13442.5.

SEC. 2.

 Section 13442 of the Water Code, as amended by Section 7 of Chapter 2 of the Statutes of 2015, is amended to read:

13442.
 (a) Upon application by an eligible entity, as described in subdivision (b), the state board may approve the payment of grant moneys from the account to that entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need without regard to whether the need for drinking water is a result of the discharge of waste.
(b) An entity is eligible to apply for funding pursuant to this section if that entity has authority to undertake the activity described in subdivision (a) for which it seeks moneys and the entity is any of the following:
(1) A public agency.
(2) A tribal government that is on the California Tribal Consultation List maintained by the Native American Heritage Commission and is a disadvantaged community, as defined in Section 79505.5, that agrees to waive tribal sovereign immunity for the explicit purpose of regulation by the state board pursuant to this division.
(3) A not-for-profit organization serving a disadvantaged community, as defined in Section 79505.5.
(4) A community water system, as defined in Section 116275 of the Health and Safety Code, that serves a disadvantaged community, as defined in Section 79505.5.
(c) An eligible entity shall not become liable to the state board for repayment of moneys paid to the entity under this section and expended in accordance with the state board’s approval of payment, but this shall not be a defense to an action brought pursuant to subdivision (c) of Section 13304 for the recovery of moneys paid under this section.
(d) Projects using moneys that are paid to an eligible entity pursuant to this section shall be exempt from state contracting and procurement requirements set forth in the Government Code and the Public Contract Code to the extent necessary to take immediate action to protect public health and safety.
(e) The state board may adopt guidelines for the allocation and administration of these moneys that shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

SEC. 3.

 Section 13442 of the Water Code, as added by Section 8 of Chapter 2 of the Statutes of 2015, is repealed.

SEC. 4.

 Section 13442.5 is added to the Water Code, to read:

13442.5.
 (a) Upon application by an eligible entity, as described in subdivision (b), the state board may make funds available from the account for a loan to that entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need without regard to whether the need for drinking water is a result of the discharge of waste.
(b) An entity is eligible to apply for a loan pursuant to this section if that entity has authority to undertake the activity described in subdivision (a) for which it seeks moneys and the entity is any of the following:
(1) A public agency.
(2) A nonprofit organization.
(3) A community water system, as defined in Section 116275 of the Health and Safety Code.
(c) Loan applicants shall demonstrate all of the following:
(1) The ability to repay the loan.
(2) The availability of adequate collateral to secure the loan.
(3) That the loaned funds will be used for purposes consistent with subdivision (a).
(4) Other information that the state board determines to be necessary.
(d) Any loan issued pursuant to this section shall be secured by adequate collateral. The term of the loan shall not exceed 10 years. The interest rate for the loan shall be set by the state board in guidelines adopted pursuant to subdivision (f).
(e) Projects using moneys that are loaned pursuant to this section shall not be subject to state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety.
(f) The state board shall adopt guidelines for the allocation and administration of loans from the account. These guidelines shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(g) The state board may expend funds from the account to service loans, recover defaulted loan moneys, and protect the state’s position as a lender creditor.