Bill Text: CA SB1456 | 2015-2016 | Regular Session | Chaptered
Bill Title: Safe Drinking Water State Revolving Fund Law of 1997: water systems: financing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State. Chapter 488, Statutes of 2016. [SB1456 Detail]
Download: California-2015-SB1456-Chaptered.html
BILL NUMBER: SB 1456 CHAPTERED
BILL TEXT
CHAPTER 488
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2016
APPROVED BY GOVERNOR SEPTEMBER 22, 2016
PASSED THE SENATE AUGUST 25, 2016
PASSED THE ASSEMBLY AUGUST 23, 2016
AMENDED IN ASSEMBLY AUGUST 18, 2016
AMENDED IN SENATE APRIL 27, 2016
INTRODUCED BY Senator Galgiani
FEBRUARY 19, 2016
An act to amend Section 116761.20 of the Health and Safety Code,
relating to drinking water, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1456, Galgiani. Safe Drinking Water State Revolving Fund Law of
1997: water systems: financing.
Existing law establishes the Safe Drinking Water State Revolving
Fund, and moneys in the fund are continuously appropriated to the
State Water Resources Control Board for the provision of grants and
revolving fund loans to provide for the design and construction of
projects for public water systems that will enable suppliers to meet
safe drinking water standards. Existing law, for community public
water systems and not-for-profit noncommunity public water systems,
allows planning and preliminary engineering studies, project design,
and construction costs incurred by those public water systems to be
funded by loans and other repayable financing. Existing law
additionally allows, if those public water systems are owned by
public agencies or not-for-profit water companies, those specified
costs to be funded by grants, principal forgiveness, or a combination
of grants and loans or other financial assistance. Existing law
requires the board to determine what portion of the full costs the
public agency or private not-for-profit water company is capable of
repaying and requires the board to authorize a grant or principal
forgiveness only to the extent the board finds the public agency or
private not-for-profit water company is unable to repay the full
costs of the financing.
This bill would authorize the above-described costs to be funded
by loans or other repayable financing, grants, principal forgiveness,
or a combination of grants and loans or other financial assistance,
regardless of whether the community water system or not-for-profit
noncommunity water system is owned by a public agency or private
not-for-profit water company. By expanding the use of moneys in a
continuously appropriated fund, this bill would make an
appropriation. The bill would only authorize a grant or principal
forgiveness to a community water system or not-for-profit
noncommunity water system that serves a disadvantaged community. The
bill, for a water system that is a water corporation regulated by the
Public Utilities Commission, would limit the principal forgiveness
to capital improvements made by the water system serving
disadvantaged communities with fewer than 3,300 service connections.
Existing law deems a public agency or private not-for-profit water
company serving a severely disadvantaged community with fewer than
200 service connections and that owns a small community water system
or nontransient community water system to have no ability to repay
any financing for a project serving the severely disadvantaged
community.
This bill would apply this finding to a community water system or
not-for-profit noncommunity water system that is not a water
corporation regulated by the Public Utilities Commission and that
serves a severely disadvantaged community with fewer than 200 service
connections.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 116761.20 of the Health and Safety Code is
amended to read:
116761.20. (a) Planning and preliminary engineering studies,
project design, and construction costs incurred by a community water
system or not-for-profit noncommunity water system may be funded
under this chapter.
(b) (1) The board shall determine what portion of the full costs
the water system is capable of repaying and authorize funding in the
form of a loan or other repayable financing for that amount. The
board may authorize a grant or principal forgiveness to a system
eligible under subdivision (a) that serves a disadvantaged community
and only to the extent the board finds the water system is unable to
repay the full costs of the financing.
(2) Where the otherwise eligible water system is a water
corporation regulated by the Public Utilities Commission, principal
forgiveness shall be limited to capital improvements made by a water
system serving disadvantaged communities with fewer than 3,300
service connections, and the board shall incorporate consideration of
the water system's rate of return for the three fiscal years before
the timeframe in which the board is considering financial assistance.
(3) Where an otherwise eligible water system is not a water
corporation described in paragraph (2) and serves a severely
disadvantaged community with fewer than 200 service connections, the
water system is deemed to have no ability to repay any financing for
a project serving the severely disadvantaged community.
(c) At the request of the board, the Public Utilities Commission
shall submit comments concerning the ability of water systems,
subject to its jurisdiction, to finance the project from other
sources and to repay the financing.
