1. (a) “Applicant” means a legal entity with the authority to enter into a Financing Agreement with the State Water Board, but which has not yet executed such Financing Agreement.
2. (b) “Application” means the information and documents which an Applicant must provide to the State Water Board to be considered for Grant funding.
3. (c) “Authorized Representative” means a person who has the authority to represent an Applicant and sign documents pertaining to the Application and Financing Agreement.
4. (d) “Construction Allowances” means construction change orders, construction management, and engineering during construction.
5. (e) “Construction” means the construction of a water recycling Project, including but not limited to treatment systems, interconnections, consolidations, purchase of equipment, and extending service to residents.
6. (f) “Disadvantaged Community” or “DAC” means a community with a Median Household Income of less than eighty percent (80%) of the area average or less than eighty percent (80%) of the statewide Median Household Income.
7. (g) “Division of Financial Assistance” or “DFA” means the Division of Financial Assistance of the State Water Board.
8. (h) “Eligible Costs” are the costs within a Project which are eligible to be reimbursed with Grant funding, as described in section 3435.
9. (i) “Eligible Project Capacity” means the capacity of a Project to produce recycled water based on Recycled Water Market Assurances.
10. (j) “Existing User” means an entity that currently exists or will exist prior to a Project's Initiation of Operation and which would use fresh water if recycled water were not made available.
11. (k) “Financing Agreement” means a written agreement between the State Water Board and the Recipient, and any amendments thereto, signed by all parties, which sets forth the terms, provisions, and conditions which shall govern Grant financing and may govern other State Water Board financing.
12. (l) “Financing Agreement Number” means the identification number given to a Financing Agreement during drafting.
13. (m) “Final Budget Approval Package” means the collection of documents submitted by the Applicant which, if approved by DFA staff, will provide the basis for the final budget for the Project, as described in section 3440 of this Article.
14. (n) “Grant” means non-repayable financing authorized under Section 91014 of the Public Resources Code and governed by this Article.
15. (o) “Initiation of Operation” means the actual date when a water recycling facility initiates operation and when the Recipient begins using the facilities for their intended purpose, as set forth in the Financing Agreement.
16. (p) “Large-Scale Project” means a Project that will deliver at least 10,000 acre-feet per year (AFY) of recycled water at the completion of construction.

17. (q) “Mandatory Use Ordinance” means a local law adopted by a retail water purveyor requiring the use of recycled water in place of another water source which specifies the following:

    1. (1) The types of users for which recycled water is mandatory;
    2. (2) The conditions under which recycled water must be used or under which new development must be plumbed for future recycled water use;
    3. (3) Procedures for determining the water users required to convert to recycled water service, or be plumbed to accept recycled water upon new water service;
    4. (4) Procedures to provide notice to potential recycled water users the Mandatory Use Ordinance, including information about the Project, about recycled water users' responsibilities under the Mandatory Use Ordinance, about the price of recycled water, and about on-site retrofit requirements;
    5. (5) Procedures for recycled water users to request a waiver; and
    6. (6) A penalty for noncompliance with the Mandatory Use Ordinance.
18. (r) “Maximum Grant Amount” means the maximum amount of Grant funds that a Project may receive in a Financing Agreement.
19. (s) “Median Household Income” or “MHI” means the household income that represents the median value for an Applicant's service area.
20. (t) “Planning” means the preliminary activities necessary to construct or implement a Project, including but not limited to legal costs, studies, planning, preliminary engineering, and design for a Project.
21. (u) “Project” means the set of activities described in an Application for Grant financing or in a Financing Agreement for which partial or full Grant funding, authorized under Section 91014 of the Public Resources Code, is sought.
22. (v) “Project Report” means a document contained in the technical package of the Application which contains sufficient information for State Water Board staff to evaluate whether a proposed Project meets the requirements of this Article and fulfills the purposes of the proposed Project, as described in section 3437 of this article.
23. (w) “Proposition 4” means the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 approved by California voters on November 5, 2024, and codified in Division 50 of the Public Resources Code (sections 90000 et seq.).
24. (x) “Recipient” means an Applicant with an executed Financing Agreement signed by all parties.
25. (y) “Recycled Water” means water which, as a result of treatment of waste, is suitable for a direct beneficial use or a controlled use that would not otherwise occur.
26. (z) “Recycled Water Market Assurances” means a Mandatory Use Ordinance, User Contract, or Special Assessment.
27. (aa) “Severely Disadvantaged Community” or “SDAC” means a community with a Median Household Income of less than sixty percent (60%) of the area average or less than sixty percent (60%) of the statewide Median Household Income.
28. (bb) “Small Disadvantaged Community” or “Small DAC” means a Disadvantaged Community with a population of less than 20,000.
29. (cc) “Small Severely Disadvantaged Community” or “Small SDAC” means a Severely Disadvantaged Community with a population of less than 20,000.
30. (dd) “Special Assessment” means a special assessment district formed for the purpose of using recycled water pursuant to either the criteria in subsection (q)(1) -- (6) or the criteria in subsection (hh)(1) -- (7).
31. (ee) “State Assigned Project Number” means the identification number given to a proposed Project at the time an Application is received by the State Water Board.
32. (ff) “State Water Board” means the State Water Resources Control Board.
33. (gg) “Total Eligible Project Cost” means the sum of all Eligible Costs contained within a Project's scope, regardless of whether all those Eligible Costs will receive Grant funding.

34. (hh) “User Contract” means a binding agreement between a recycled water purveyor and recycled water users, signed by both parties, which contains the following:

    1. (1) A commitment to use the recycled water provided under the User Contract;
    2. (2) The annual amount of recycled water that the user agrees to use
    3. (3) The sites and types of recycled water uses;
    4. (4) The conditions of use and the quality of recycled water;
    5. (5) The price of the recycled water;
    6. (6) Descriptions of the regulatory and water purveyor's on-site retrofit requirements needed to convert from freshwater to recycled water; and
    7. (7) Dates when the commitment to use recycled water will begin and end.
35. (ii) “Waste Discharge Requirement” means the Waste Discharge Requirements imposed upon dischargers of waste as construed by sections 13260 et seq. of the Water Code.

The following definitions shall govern construction of this Article:

Note: Authority cited: Section 1058, Water Code; and Section 90135, Public Resources Code. Reference: Sections 13050 and 13260, Water Code; and Sections 90100, 90140, 91000, 91010 and 91014, Public Resources Code.

History

1. New section filed 2-17-2026 as an emergency; operative 2-17-2026 (Register 2026, No. 8). This filing is a deemed emergency and shall remain in effect until repealed or revised by the board pursuant to Public Resources Code section 90135(e).