CA AB2636

Establishes the CalConserve Water Use Efficiency Revolving Fund administered by the Department of Water Resources to provide sustainable funding for water use efficiency projects.

Authorizes the department to provide at or below market interest rate loans to local agencies for water conservation, agricultural water efficiency, recycled water projects, and greenhouse gas emission reductions, with repayment periods up to 20 years (25 years for disadvantaged communities).

Transfers specified bond proceeds from the Costa-Machado Water Act of 2000 (Proposition 13) to the fund for loans and grants to local agencies for agricultural water conservation projects.

Permits the department to accept federal contributions, provide technical assistance to local agencies, guarantee local obligations, and use fund revenue for administrative costs (capped at 4 percent of the fund).

Allows local agencies to implement water use efficiency loan programs through on-bill financing mechanisms and requires all loan repayments and interest earnings to be deposited back into the fund for continued use.