Cal. Water Code - WAT § 13440. Section 13440.
There is in the State Water Quality Control Fund the State Water Pollution Cleanup and Abatement Account (hereinafter called the “account”), to be administered by the state board.
ARTICLE 3. State Water Pollution Cleanup and Abatement Account [13440. - 13444.]
Cal. Water Code - WAT 3.
in effectCal. Water Code - WAT § 13441. Section 13441.
(a)
There is to be paid into the account all moneys from the following sources:
(1)
All moneys appropriated by the Legislature for the account.
(2)
All moneys contributed to the account by any person and accepted by the state board.
(3)
Except as otherwise provided, one-half of all moneys collected by way of criminal penalty and all moneys collected civilly under any proceeding brought pursuant to any provision of this division.
(4)
All moneys collected by the state board or a regional board for the account under Chapter 6.7 (commencing with Section 25280) of Division 20 of the Health and Safety Code.
(5)
All moneys collected by the state board for the account under Section 13304 or for the account under other law allowing recovery of costs for cleanup or abatement of waste, pollution, or contamination.
(6)
Repayment of principal, interest, and fees on loans issued pursuant to this article.
(7)
Repayments of loan and grant moneys paid to a loan or grant recipient pursuant to this article in which the recipient was not eligible for that loan or grant.
(8)
Notwithstanding Sections 16305.7 and 16475 of the Government Code, any interest earned upon moneys deposited into the account.
(b)
The first unencumbered five hundred thousand dollars ($500,000) paid into the account in any given fiscal year is available without regard to fiscal years, for expenditure by the state board in accordance with the provisions of this
article. The next unencumbered five hundred thousand dollars ($500,000), or any portion thereof, deposited in any given fiscal year, is available for expenditure by the state board for the purposes of this article, subject to the provisions set forth in Section 28 of the Budget Act of 1984 (Chapter 258 of the Statutes of 1984). The next unencumbered one million dollars ($1,000,000) deposited in the account in any given fiscal year is available for expenditure by the state board for the purposes of Section 13443. The remaining unencumbered funds deposited in the account in any given fiscal year is available without regard to fiscal years to the state board for expenditure for the purposes set forth in Sections 13442 and 13442.5.
Cal. Water Code - WAT § 13441.5. Section 13441.5.
The State Treasurer, when requested by the state board and approved by the Director of Finance, shall transfer moneys in the nature of a loan from the State Water Quality Control Fund to the account created pursuant to Section 13440, which shall be repayable from the account to such fund; provided, that the moneys transferred from the fund to the account shall not exceed the sum of twenty-five thousand dollars ($25,000) at any one time.
Cal. Water Code - WAT § 13442. Section 13442.
(a)
Upon application by an eligible entity, as described in subdivision (b), the state board may approve the payment of grant moneys from the account to that entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, addressing actions required pursuant to Section 13289.5, or addressing an urgent drinking water need without regard to whether the need for drinking water is a result of the discharge of waste.
(b)
An entity is eligible to apply for funding pursuant to this section if that entity has authority to undertake the activity described in subdivision (a) for which it seeks moneys and the entity is any of the following:
(1)
A public agency.
(2)
A tribal government that is on the California Tribal Consultation List maintained by the Native American Heritage Commission and is a disadvantaged community, as defined in Section 79505.5, that agrees to waive tribal sovereign immunity for the explicit purpose of regulation by the state board pursuant to this division.
(3)
A not-for-profit organization serving a disadvantaged community, as defined in Section 79505.5.
(4)
A community water system, as defined in Section 116275 of the Health and Safety Code, that serves a disadvantaged community, as defined in Section 79505.5.
(5)
An administrator, as defined in Section 13288.
(c)
An eligible entity shall not become liable to the state board for repayment of moneys paid to the entity under this section and expended in accordance with the state board’s approval of payment, but this shall not be a defense to an action brought pursuant to subdivision (c) of Section 13304 for the recovery of moneys paid under this section.
(d)
Projects using moneys that are paid to an eligible entity pursuant to this section shall be exempt from state contracting and procurement requirements set forth in the Government Code and the Public Contract Code to the extent necessary to take immediate action to protect public health and safety.
(e)
The state
board may adopt guidelines for the allocation and administration of these moneys that shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(f)
The state board may expend funds for the purposes described in Section 13289.5, but is not authorized to use funds for these purposes for costs incurred after December 31, 2029.
Cal. Water Code - WAT § 13442.5. Section 13442.5.
(a)
Upon application by an eligible entity, as described in subdivision (b), the state board may make funds available from the account for a loan to that entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need without regard to whether the need for drinking water is a result of the discharge of waste.
(b)
An entity is eligible to apply for a loan pursuant to this section if that entity has authority to undertake the activity described in subdivision (a) for which it seeks moneys and the entity is any of the following:
(1)
A public agency.
(2)
A nonprofit organization.
(3)
A community water system, as defined in Section 116275 of the Health and Safety Code.
(c)
Loan applicants shall demonstrate all of the following:
(1)
The ability to repay the loan.
(2)
The availability of adequate collateral to secure the loan.
(3)
That the loaned funds will be used for purposes consistent with subdivision (a).
(4)
Other information that the state board determines to be necessary.
(d)
Any loan issued pursuant to this section shall be secured by adequate collateral. The term of the loan shall not
exceed 10 years. The interest rate for the loan shall be set by the state board in guidelines adopted pursuant to subdivision (f).
(e)
Projects using moneys that are loaned pursuant to this section shall not be subject to state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety.
(f)
The state board shall adopt guidelines for the allocation and administration of loans from the account. These guidelines shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(g)
The state board may expend funds from the account to service loans, recover defaulted loan moneys, and protect the state’s position as a lender creditor.
Cal. Water Code - WAT § 13443. Section 13443.
Upon application by a regional board that is attempting to remedy a significant unforeseen water pollution problem, posing an actual or potential public health threat, or is overseeing and tracking the implementation of a supplemental environmental project required as a condition of an order imposing administrative civil liability, and for which the regional board does not have adequate resources budgeted, the state board may order moneys to be paid from the account to the regional board to assist it in responding to the problem.
Cal. Water Code - WAT § 13444. Section 13444.
(a)
No later than January 1 of each year, the board shall post on its internet website a report describing the receipts and expenditures of the State Water Pollution Cleanup and Abatement Account for the most recent completed fiscal year.
(b)
The board shall complete the initial report no later than January 1, 2026, and that report shall
include, but not be limited to, the data required pursuant to subdivision (c) for the period from July 1, 2017, to June 30, 2025, inclusive.
(c)
Each report completed pursuant to this section shall include, but not be limited to, the following:
(1)
A list of applications that, for each application, contains the following:
(A)
The amount of funds the application requested.
(B)
The board’s decision on the application.
(C)
The amount of funds granted to the applicant.
(D)
A description of the project funded, if applicable.
(E)
If the application was denied in whole or in part, the reasons for the denial or partial funding.
(2)
(A)
The total and individual amount of deposits to the State Water Pollution Cleanup and Abatement Account originating from enforcement fines.
(B)
The
total amount of funds diverted to supplemental environmental projects
from enforcement fines that would otherwise be deposited into the State Water Pollution Cleanup and Abatement Account.
(3)
The total amount of deposits to the account originating from
each regional board and the total amount of grants provided to projects within each region.
(d)
Commencing no later than June 30, 2025, the board shall separately account within the State Water Pollution Cleanup and Abatement Account all categories of receipts, which shall include, but not be limited to, all of the following categories:
(1)
Enforcement fines.
(2)
Cost recovery in accordance with Section 13365.
(3)
Judicially approved settlements or judicial orders that include specified limitations on the use of the funds.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026