Section 13477.6.

(a) The State Water Pollution Control Revolving Fund Small Community Grant Fund is hereby created in the State Treasury.

(b) The following moneys shall be deposited in the grant fund:

(1) Moneys transferred to the grant fund pursuant to subdivision (c).

(2) Notwithstanding Section 16475 of the Government Code, any interest earned upon the moneys deposited in the grant fund.

(c) (1) For any financing made pursuant to Section 13480, the board may assess an annual charge to be deposited in the grant fund in lieu of interest that would otherwise be charged.

(2) Any amounts collected under this subdivision shall be deposited in the grant fund, not more than fifty million dollars ($50,000,000) shall be deposited in the grant fund.

(3) The charge authorized by this subdivision may be applied at any time during the term of the financing, and once applied, shall remain unchanged until 2014, at which point it shall terminate and be replaced by an identical interest rate. The charge shall not increase the financing repayment amount as set forth in the terms and conditions imposed pursuant to this chapter.

(d) (1) Moneys in the grant fund, upon appropriation by the Legislature to the board, may be expended, in accordance with this chapter, for grants for projects described in subdivision (a) of Section 13480 that serve small communities as defined in subdivision (a) of Section 30925 of the Public Resources Code.

(2) For the purpose of approving grants, the board shall give priority to projects that serve severely disadvantaged communities.

(Added by Stats. 2008, Ch. 609, Sec. 5. Effective January 1, 2009.)