CA AB560

Authorizes the State Water Resources Control Board to provide grant funding and principal forgiveness with 0% financing on loans from the Safe Drinking Water State Revolving Fund to water systems serving severely disadvantaged communities.

Applies only when a water system demonstrates that repaying a Safe Drinking Water State Revolving Fund loan with interest would result in unaffordable water rates.

Defines "unaffordable water rates" as an average water bill that is at least 1.5% of the median household income in the service area, or another percentage the board determines appropriate.

Actions subject to federal law limitations and consistency with federal requirements for Safe Drinking Water State Revolving Fund eligibility criteria.

Approved by Governor October 7, 2017 and filed with Secretary of State the same date.