California Assembly Bill AB2011 Amended / Bill

 BILL NUMBER: AB 2011AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 29, 2012 INTRODUCED BY Assembly Member Gatto FEBRUARY 23, 2012 An act to add Section 79784.5 to the Water Code, relating to the Safe, Clean, and Reliable Drinking Water Supply Act of 2012. LEGISLATIVE COUNSEL'S DIGEST AB 2011, as amended, Gatto. CalConserve  State Revolving Fund.   Water Conservation Retrofit Program   .  Existing law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if approved by the voters at the November 6, 2012, statewide election, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. The act would make $250,000,000 available, upon appropriation by the Legislature from the Safe, Clean, and Reliable Drinking Water Supply Fund of 2012, for direct expenditures, grants, and loans for water conservation and water use efficiency plans, projects, and programs. The bill would require up to $50,000,000 of those water conservation and water use efficiency funds, upon appropriation by the Legislature from the fund, to be allocated to the Department of Water Resources to establish  a   the  CalConserve  State Revolving Fund   Water Conservation Retrofit Program  to provide grants  and loans to private entities   to local water agencies for the implementation of local and regional water conservation loan programs, as prescribed, to assist customers within the service area of the water agency  , consistent with the act, for   to carry out  water use efficiency retrofit projects.  This bill would become operative only if the Safe, Clean and Reliable Drinking Water Supply Act of 2012 is approved by the voters at a statewide general election.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature, in requiring the establishment of the CalConserve program, to create a sustainable funding source for water use efficiency retrofits. It is the further intent of the Legislature that CalConserve help cities and counties achieve compliance with water use reduction mandates in Section 10608.16 of the Water Code, and help homeowners and commercial, industrial, and institutional entities achieve compliance with state-mandated standards for water use efficiency for indoor and outdoor appliances. SEC. 2. Section 79784.5 is added to the Water Code, to read: 79784.5. Of the funds made available in Section ____ for water conservation and water use efficiency plans, projects, and programs, upon appropriation by the Legislature from the fund, up to fifty million dollars ($50,000,000) shall be allocated to the department to establish the CalConserve  State Revolving Fund to provide grants and loans to private entities, including homeowners and commercial, industrial, and institutional entities, as defined in Section 10608.12, for   Water Conservation Retrofit Program. The water conservation retrofit program shall provide grants to local water agencies for the   implementation of local and regional water conservation loan programs that assist customers within the service area of the water agency to carry out  water use efficiency retrofit projects, consistent with Section ____, and in accordance with the following: (a) The department shall  give priority to awarding CalConserve funds to retrofit projects that   determine the extent to which available f   unding shall be distributed geographically to  maximize local and statewide conservation and water use efficiency benefits.  (b) The department shall award CalConserve funds in a competitive process that considers, as primary factors, the local and statewide conservation and water use efficiency benefits of the projects proposed for grants or loans and the extent to which a proposed retrofit helps a water supplier and the region realize the conservation benefits of implementation of the state landscape model ordinance and other statewide water use efficiency measures.   (c) For awards under five hundred dollars ($500), the department shall award the money directly to the recipient private entity. The department may arrange with local water agencies for loan repayment through monthly charges on the recipient's water service bill. For loans of five hundred dollars ($500) or more, CalConserve shall offer very low interest amortized loans and loan guarantees, which the department may model after the loan process for the Safe Drinking Water State Revolving Fund Law of 1997 (Chapter 4.5 (commencing with Section 116760) of Part 12 of Division 104 of the Health and Safety Code). All loans shall be repaid within six years of award.   (b) As a condition of the grant to the local water agency, the department shall require the following:   (1) A local agency receiving CalConserve funds shall provide not less than a 30 percent match of its funds to support the water conservation retrofit program.   (2) A local water conservation retrofit program shall maximize the local and statewide conservation and water use efficiency benefits.   (3) An eligible retrofit project shall include, but is not limited to, a project that implements a project in compliance with the state landscape model ordinance.   (4) Loans for project design and construction shall be repaid over a term not longer than the useful life of the project constructed or 15 years, whichever is shorter.   (c) The department shall annually establish the interest rate for loans made pursuant to this chapter at 50 percent of the average interest rate, computed by the true interest cost method paid by the state on general obligation bonds issued in the prior calendar year.   (d) The local water agency may charge a reasonable administration fee to be paid along with the interest on the loan over the lifetime of the loan.   SEC. 3.   This act shall become operative only if the Safe, Clean, and Reliable Drinking Water Supply Act of 2012 is approved by the voters at a statewide general election.