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WC Sec 78640-78645.7
78640. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) (1) "Drainage water management units" means land and
facilities for the treatment, storage, conveyance, reduction, or
disposal of agricultural drainage water which, if discharged
untreated, would pollute or threaten to pollute the waters of the
(2) Drainage water management units shall include one or more of
(A) A surface impoundment that is designed to hold an accumulation
of drainage water, including, but not limited to, holding, storage,
settling, and aeration pits, and lagoons. A surface impoundment does
not include a landfill, a land farm, a pile, an emergency
containment dike, tank, injection well, evaporation pond, or
(B) Conveyance facilities to the treatment or storage site,
including devices for flow regulation.
(C) Facilities or works to treat agricultural drainage water to
remove or substantially reduce the level of constituents which
pollute or threaten to pollute the waters of the state, including,
but not limited to, processes utilizing ion exchange, desalting
technologies such as reverse osmosis, and biological treatment.
(D) Facilities or works to reduce the amount of agricultural
drainage water discharged, including, but not limited to, source
(E) Diked areas or cells that are (i) used for the purpose of
water conservation, water management, or environmental mitigation and
(ii) located within inland bodies of saline water in Imperial and
(3) Any or all of the drainage water management units, including
the land under the unit, may consist of separable features, or an
appropriate share of multipurpose features, of a larger system, or
(4) Drainage water management units do not include facilities for
the direct discharge of agricultural drainage water to the bay-delta
or Pacific Ocean.
(b) "Local agency" or "agency" means any city, county, district,
joint powers authority, or other political subdivision of the state
involved with water management.
(c) "Project" means drainage water management units.
(d) "Subaccount" means the Drainage Management Subaccount created
by Section 78641.
78641. There is hereby created in the account the Drainage
Management Subaccount. The sum of thirty million dollars
($30,000,000) is hereby transferred from the account to the
subaccount for the purpose of implementing this article.
78642. (a) Notwithstanding Section 13340 of the Government Code,
the sum of twenty-seven million five hundred thousand dollars
($27,500,000) in the subaccount is hereby continuously appropriated,
without regard to fiscal years, to the board, for loans to local
agencies to aid in the construction of drainage water management
units for the treatment, storage, or disposal of agricultural
drainage water, and for the purposes described in Section 78644.
Priority shall be given to funding source reduction projects and
(b) Notwithstanding Section 13340 of the Government Code, the sum
of two million five hundred thousand dollars ($2,500,000) in the
subaccount is hereby continuously appropriated, without regard to
fiscal years, to the board, for grants to local agencies for the
purpose of providing the nonfederal share of the costs specified in
Section 1101 of Public Law 102-575.
78643. (a) The board may loan an agency up to 100 percent of the
total eligible costs of design and construction of an eligible
(b) Any contract for an eligible project entered into pursuant to
this article may include provisions as determined by the board to be
necessary and shall include, but not be limited to, all of the
(1) An estimate of the reasonable cost of the eligible project.
(2) An agreement by the agency to do all of the following:
(A) Proceed expeditiously with, and complete, the eligible
(B) Commence operation of the containment structures or treatment
works upon completion and to properly operate and maintain the works
in accordance with applicable provisions of law.
(C) Provide for payment of the agency's share of the cost of the
project, including principal and interest on any state loan made
pursuant to this article.
(D) If appropriate, apply for, and make reasonable efforts to
secure, federal assistance for the state-assisted project.
(c) All loans made pursuant to this article are subject to all of
the following provisions:
(1) Agencies seeking a loan shall demonstrate, to the satisfaction
of the board, that an adequate opportunity for public participation
regarding the loan has been provided.
(2) Any election held with respect to the loan shall include the
voters of the entire agency except where the agency proposes to
accept the loan on behalf of a specified portion, or portions, of the
agency, in which case the election shall be held in that portion or
portions of the agency only.
(3) Loan contracts may not provide a moratorium on payment of
principal or interest.
(4) Loans shall be for a period of not more than 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, to be computed according to
the true interest cost method. If 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. The
interest rate set for each contract shall be applied throughout the
repayment period of the contract. There shall be a level annual
repayment of principal and interest on loans.
(5) No single project may receive more than five million dollars
($5,000,000) in loan proceeds from the board under this act and the
Water Conservation and Water Quality Bond Law of 1986 (Chapter 6.1
(commencing with Section 13450) of Division 7).
(d) The board may make loans to local agencies, at the interest
rates authorized under this article and under any terms and
conditions as may be determined necessary by the board, for purposes
of financing feasibility studies of projects potentially eligible for
funding under this article. No single project shall be eligible to
receive more than one hundred thousand dollars ($100,000), and not
more than 3 percent of the total amount of bonds authorized to be
expended for the purposes of this article may be expended for loans
to finance feasibility studies. A loan for a feasibility study shall
not decrease the maximum amount of any other loan which may be made
under this article.
78644. The board may, by contract or otherwise, undertake plans,
surveys, research, development, and studies necessary, convenient, or
desirable to carry out subdivision (a) of Section 78642.
78645. (a) Any unallocated money remaining in the Agricultural
Drainage Water Account in the 1986 Water Conservation and Water
Quality Bond Fund on November 6, 1996, and any unallocated money
deposited into that account from the sale of any bonds that are sold
after November 6, 1996, shall be transferred to the subaccount. For
the purpose of this section "unallocated money" means money not
committed or appropriated as of November 6, 1996, which is not less
than six million one hundred seventy-seven thousand dollars
(b) Notwithstanding Section 13340 of the Government Code, any
funds that are transferred pursuant to subdivision (a) to the
subaccount are hereby continuously appropriated, without regard to
fiscal years, to the Department of Food and Agriculture for programs
to develop methods of using drainage water and reducing toxic
materials in drainage water through reuse of the water and the use of
the remaining salts. Priority shall be given to source reduction
projects and programs.
78645.5. Not more than 3 percent of the total amount deposited in
the subaccount for the use of the board may be used to pay for both
of the following purposes:
(a) To pay the costs incurred by the board in connection with the
administration of this article.
(b) For the purposes of Section 78644.
78645.7. Not more than 3 percent of the total amount deposited in
the subaccount for the use of the Department of Food and Agriculture
may be used to pay the costs incurred by that department in
connection with the administration of this article.