14055-14061

WATER CODE
SECTION 14055-14061




14055.  (a) The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the State Treasury to the credit of the
1988 Clean Water and Water Reclamation Fund, which is hereby
created. There shall be established in the fund a Small Communities
Grant Account for the purpose of implementing Section 14056 and a
Water Reclamation Account for the purpose of implementing Section
14058.
   (b) From time to time, the board may modify existing accounts in
the fund, or may establish other accounts in the fund, and in all
other bond funds administered by the board, which the board
determines are appropriate or necessary for proper administration.




14056.  (a) The sum of twenty-five million dollars ($25,000,000) of
the money in the fund shall be deposited in the Small Communities
Grant Account and, notwithstanding Section 13340 of the Government
Code, is hereby continuously appropriated for state grants to small
communities for construction of treatment works eligible for
assistance under Title VI of the federal act.
   (b) The board may enter into grant contracts in accordance with
this section with qualifying small communities having authority to
construct, operate, and maintain treatment works to aid in the
construction of eligible projects.
   (c) The board may make grants to small communities in an amount on
a sliding scale, based on a community's ability to pay, not to
exceed 97 1/2 percent of the total estimated cost of pollution
studies, planning, design, and construction determined in accordance
with applicable state laws and regulations. Total state assistance
under this section shall not exceed two million dollars ($2,000,000)
for any single eligible project.
   (d) Any contract entered into pursuant to this section may include
such provisions as may be determined by the board, provided that any
contract shall include the following provisions:
   (1) An estimate of the reasonable cost of the eligible project.
   (2) An agreement by the small community to proceed expeditiously
with, and complete, the proposed eligible project, commence operation
of the treatment works upon completion, and to properly operate and
maintain the works in accordance with applicable provisions of law.
   (e) Small communities eligible for a state grant may also apply
for a loan from the State Water Pollution Control Revolving Fund for
costs not covered by the grant.



14057.  The sum of ten million dollars ($10,000,000) of the money in
the fund shall be available for transfer by the board to the Clean
Water Bond Guarantee Fund and shall be available to the board to
guarantee local agency bond issues pursuant to Article 2.5
(commencing with Section 13425) of Chapter 6. After January 1, 1990,
the board may transfer any funds in the Clean Water Bond Guarantee
Fund which have not been committed to guaranteeing local agency bond
issues to the 1988 Clean Water and Water Reclamation Fund.



14058.  (a) The sum of thirty million dollars ($30,000,000) of the
money in the fund shall be deposited in the Water Reclamation Account
and, notwithstanding Section 13340 of the Government Code, is hereby
continuously appropriated to the board for the purposes of this
section.
   (b) The board may enter into contracts with local public agencies
having authority to construct, operate, and maintain water
reclamation projects, for loans to aid in the design and construction
of eligible water reclamation projects. The board may loan up to 100
percent of the total eligible cost of design and construction of an
eligible reclamation project.
   (c) Any contract for an eligible water reclamation project entered
into pursuant to this section may include such provisions as
determined by the board and shall include both of the following
provisions:
   (1) An estimate of the reasonable cost of the eligible water
reclamation project.
   (2) An agreement by the local public agency to proceed
expeditiously with, and complete, the eligible water reclamation
project; commence operation of the project in accordance with
applicable provisions of law, and provide for the payment of the
local public agency's share of the cost of the project, including
principal and interest on any state loan made pursuant to this
section.
   (d) Loan contracts may not provide for a moratorium on payments of
principal or interest.
   (e) Any loans made from the fund may be for a period of up to 20
years. The interest rate for the loans shall be set at a rate equal
to 50 percent of the interest rate paid by the state on the most
recent sale of state general obligation bonds, with that rate to be
computed according to the true interest cost method. When the
interest rate so determined is not a multiple of one-tenth of 1
percent, the interest rate shall be set at the next higher multiple
of one-tenth of 1 percent.
   (f) All money repaid to the state pursuant to any contract
executed under this chapter shall be deposited in the Water Recycling
Subaccount in the Clean Water and Water Recycling Account in the
Safe Drinking Water, Clean Water, Watershed Protection, and Flood
Protection Bond Fund created by Section 79136, for the purposes set
forth in Article 4 (commencing with Section 79135) of Chapter 7 of
Division 26.


14059.  As approved by the Legislature annually in the Budget Act,
the board may expend for the administration of this chapter not more
than 5 percent of the amount of the bonds authorized to be issued
under this chapter.


14060.  As approved by the Legislature annually in the Budget Act,
the board may, by contract or otherwise, undertake plans, surveys,
research, development, and studies necessary, convenient, or
desirable to carry out the purposes of this division, and may prepare
recommendations with regard thereto, including the preparation of
comprehensive statewide or areawide studies and reports on water
reclamation and the collection, treatment, and disposal of waste
under a comprehensive cooperative plan.



14061.  The board may adopt rules, regulations, and guidelines
necessary or appropriate to carry out this chapter.