(a) The Safe Drinking Water Small Community Emergency Grant Fund is hereby created in the State Treasury.
(b) The following moneys shall be deposited in the grant fund:
(1) Moneys transferred to the grant fund pursuant to subdivision (c).
(2) Notwithstanding Section 16475 of the Government Code, any interest earned upon the moneys deposited in the grant fund.
(c) (1) For any financing made pursuant to this chapter, the board may assess an annual charge to be deposited in the grant fund in lieu of interest that would otherwise be charged.
(2) Any amounts collected under this subdivision shall be deposited in the grant fund.
(3) The charge authorized by this subdivision may be applied at any time during the term of the financing and, once applied, shall remain unchanged, unless the board determines that the application of the charge is any of the following:
(A) No longer consistent with federal requirements regarding the fund.
(B) No longer necessary.
(C) Negatively affecting the board’s ability to fund projects that support the board’s goals as specified in this chapter.
(4) If the board ceases collecting the charge before the financing repayment is complete, the board shall replace the charge with an identical interest rate.
(5) The charge authorized by this subdivision shall not increase the financing repayment amount, as set forth in the terms and conditions imposed pursuant to this chapter.
(d) (1) Moneys in the grant fund may be expended on grants for projects that meet the requirements of this chapter and that serve disadvantaged and severely disadvantaged communities or address emergencies experienced by small community water systems.
(2) For the purpose of approving grants, the board shall give priority to projects that serve severely disadvantaged communities.
(3) Funds expended pursuant to this section shall be expended in a manner consistent with the federal EPA capitalization grant requirements established in Section 35.3530(b)(2) of Title 40 of the Code of Federal Regulations.
(e) This section shall become operative on July 1, 2014.
(Repealed (in Sec. 81) and added by Stats. 2014, Ch. 35, Sec. 82. (SB 861) Effective June 20, 2014. Section operative July 1, 2014, by its own provisions.)