CA AB339

Removes the July 1, 2018 sunset date on the State Water Pollution Cleanup and Abatement Account, making grant payments to eligible entities permanent.

Establishes a new loan program through Section 13442.5 allowing public agencies, nonprofits, and community water systems to borrow from the account for cleanup, waste abatement, or urgent drinking water needs.

Requires loans to be secured by adequate collateral with a maximum term of 10 years and interest rates set by the State Water Resources Control Board.

Expands sources of funds deposited into the account to include repayments of principal, interest, and fees on loans; repayments of ineligible loan or grant recipients; and interest earned on account moneys.

Exempts projects funded by grants or loans from state contracting and procurement requirements to the extent necessary to protect public health and safety.