ARTICLE 6. Seawater Intrusion Control [78648. - 78648.16.]

Cal. Water Code - WAT 6.

in effect

Cal. Water Code - WAT § 78648. Section 78648.

Unless the context otherwise requires, the following definitions govern the construction of this article: (a) (1) “Eligible seawater intrusion control project” means a project which is all of the following: (A) Necessary to protect groundwater that is (i) 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) and (ii) 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) Is cost-effective. In the case of a project to provide a substitute water supply, the project shall be cost-effective as compared to the development of other new sources of water and shall include requirements or measures adequate to ensure that the substitute supply will be used in lieu of previously established extractions or diversions of groundwater. (C) 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 78648.2.

Cal. Water Code - WAT § 78648.2. Section 78648.2.

(a) There is hereby created in the account the Seawater Intrusion Control Subaccount. The sum of ten million dollars ($10,000,000) is hereby transferred from the account to the subaccount for the purposes of implementing this article. (b) Notwithstanding Section 11340 of the Government Code, the money in the subaccount is hereby continuously appropriated, without regard to fiscal year, 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 article.

Cal. Water Code - WAT § 78648.4. Section 78648.4.

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

Cal. Water Code - WAT § 78648.6. Section 78648.6.

Any contract for a loan entered into pursuant to Section 78648.4 may include those provisions determined by the board to be necessary for 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.

Cal. Water Code - WAT § 78648.8. Section 78648.8.

(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 78648.4 shall be for a period not to exceed 20 years. (c) The board may enter into a contract for a loan up to 100 percent of the total eligible cost of design and construction of an eligible seawater intrusion control project.

Cal. Water Code - WAT § 78648.10. Section 78648.10.

(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.

Cal. Water Code - WAT § 78648.12. Section 78648.12.

Unallocated funds remaining in the subaccount on March 8, 2000, and any funds deposited into the subaccount after that date, shall be transferred to, and all money repaid to the state pursuant to any loan contract executed under this article shall be deposited in, the Seawater Intrusion Control Subaccount in the Clean Water and Water Recycling Account in the Safe Drinking Water, Clean Water, Watershed Protection, and Flood Protection Bond Fund for the purposes set forth in Article 6 (commencing with Section 79149) of Chapter 7 of Division 26.

Cal. Water Code - WAT § 78648.14. Section 78648.14.

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.

Cal. Water Code - WAT § 78648.16. Section 78648.16.

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 78648.14.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026