AB 501

This bill makes various changes to the process for applying for financial

assistance under the Clean Water Fund Program and the Safe Drinking Water Loan

Program. The Clean Water Fund Program, which is administered by the

Department of Natural Resources, provides financial assistance to municipalities for

projects to control water pollution, such as sewage treatment plants. Under the Safe

Drinking Water Loan Program, DNR provides low-interest loans to municipalities

for drinking water infrastructure projects to help them comply with federal drinking

water standards.

Under current law, a municipality that intends to apply for financial assistance

under either program must submit notice of its intent to apply to DNR at least six

months before the beginning of the fiscal year in which it will request to receive the

assistance. The bill eliminates the requirement to submit a notice of intent to apply

before applying. Current law also prohibits a municipality from submitting more

than one application per year under either program. The bill eliminates this

prohibition.

Current law also requires an applicant for financial assistance under the Safe

Drinking Water Loan Program to submit an engineering report as required by DNR

by rule. Under the bill, DNR may require submission of an engineering report and,

if an engineering report is required, the bill requires the applicant to submit the

report either before or at the same time as the application.

In addition, current law requires an applicant for assistance under the Safe

Drinking Water Loan Program to submit the application on or before the June 30

before the fiscal year in which the applicant wishes to receive funding, with certain

exceptions. The bill removes this requirement and instead requires DNR to provide,

at least annually, instructions for submitting applications, including the deadline for

submittal, if any.

Finally, under the current Safe Drinking Water Loan Program, if funding is

allocated for a loan and the loan is not closed before June 30 of the year following the

year in which funding is allocated, DOA must release the allocated funding. The bill

repeals this provision.