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AB-560 Safe Drinking Water State Revolving Fund: project financing: severely disadvantaged communities.(2017-2018)



Current Version: 10/07/17 - Chaptered

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AB560:v93#DOCUMENT

Assembly Bill No. 560
CHAPTER 552

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

[ Approved by Governor  October 07, 2017. Filed with Secretary of State  October 07, 2017. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 560, 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 requires the State Water Resources Control Board to establish eligibility criteria for project financing that is consistent with federal law.
This bill, to the extent permitted by federal law, would authorize the board 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.
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 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 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.
(c) For purposes of this section, “unaffordable water rates” means an average water bill that is at least 1.5 percent of the median household income of the service area or other percentage that the board determines is appropriate to reflect funding priorities.