CCLME.ORG - WC Article 6 (commencing with WC 79149) Ch. 7 Div. 26
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SECTION 79149-79149.16

79149. Unless the context otherwise requires, the following
definitions govern the construction of this article:
(a) (1) "Eligible seawater intrusion control project" means a
project that meets all of the following requirements:
(A) The project is necessary to protect groundwater and meets both
of the following requirements:
(i) The project is within a basin that is subject to a local
groundwater management plan for which a review is completed pursuant
to the California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code).
(ii) The project is threatened by seawater intrusion in an area
where restrictions on groundwater pumping, a physical solution, or
both, are necessary to prevent the destruction of, or irreparable
injury to, groundwater quality.
(B) In the case of a project that would provide a substitute water
supply, the project is cost-effective when compared to the
development of other new sources of water and includes requirements
or measures adequate to ensure that the substitute supply will be
used in lieu of previously established extractions or diversions of
(C) The project complies with applicable water quality standards,
policies, and plans.
(2) Eligible projects may include, but are not limited to, water
conservation, freshwater well injection, and substitution of
groundwater pumping from local surface supplies.
(b) "Local agency" means any city, county, district, joint powers
authority, or other political subdivision of the state involved in
water management.
(c) "Subaccount" means the Seawater Intrusion Control Subaccount
created by Section 79149.2.

79149.2. (a) There is hereby created in the account the Seawater
Intrusion Control Subaccount. The sum of twenty-five million dollars
($25,000,000) is hereby transferred from the account to the
subaccount for the purposes of implementing this article.
(b) Notwithstanding Section 13340 of the Government Code, the
money in the subaccount is hereby continuously appropriated, without
regard to fiscal years, to the board for loans to local agencies to
carry out eligible seawater intrusion control projects and for the
purposes described in this article and for the administration of this

79149.3. Unallocated funds remaining in the Seawater Intrusion
Control Subaccount in the Clean Water and Water Recycling Account in
the Safe, Clean, Reliable Water Supply Fund on March 8, 2000, and any
funds deposited into that subaccount after that date, shall be
transferred to, and all money repaid to the state pursuant to any
loan contract executed under Article 6 (commencing with Section
78648) of Chapter 5 of Division 24 shall be deposited in, the
subaccount for the purposes of this article.

79149.4. The board may enter into contracts to make loans to local
agencies for the purposes set forth in this article.

79149.6. Any contract for a loan entered into pursuant to Section
79149.4 may include those provisions determined by the board to be
necessary for the purposes of this article and shall include both of
the following provisions:
(a) An estimate of the reasonable cost of the eligible seawater
intrusion control project.
(b) An agreement by the local agency to proceed expeditiously
with, and complete, the eligible seawater intrusion control project,
commence operation of the project in accordance with applicable
provisions of law, and provide for the payment of the local agency's
share of the cost of the project, including the principal of, and
interest on, the loan.

79149.8. (a) A contract for a loan may not provide for a moratorium
on the payment of the principal of, or interest on, the loan.
(b) Any loan made pursuant to Section 79149.4 shall be for a
period not to exceed 20 years.
(c) The board may enter into a contract for a loan amount that
equals up to 100 percent of the total eligible cost of design and
construction of an eligible seawater intrusion control project.

79149.10. (a) The board shall establish the interest rate for a
loan made pursuant to this article 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.
(b) 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.
(c) 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 the loans.

79149.12. All principal and interest payments received pursuant to
loan contracts entered into pursuant to this article shall be
deposited in the subaccount.

79149.14. 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 article.

79149.16. Not more than 3 percent of the total amount deposited in
the subaccount may be used to pay for both of the following:
(a) To pay the costs incurred in connection with the
administration of this article.
(b) For the purposes of Section 79149.14.