Cal. Water Code § 13442.5

(a) Upon application by an eligible entity, as described in subdivision (b), the state board may make funds available from the account for a loan to that entity to assist in cleaning up a waste, abating the effects of a waste on waters of the state, or addressing an urgent drinking water need without regard to whether the need for drinking water is a result of the discharge of waste.
(b) An entity is eligible to apply for a loan pursuant to this section if that entity has authority to undertake the activity described in subdivision (a) for which it seeks moneys and the entity is any of the following:
1. (1) A public agency.
2. (2) A nonprofit organization.
3. (3) A community water system, as defined in Section 116275 of the Health and Safety Code.
(c) Loan applicants shall demonstrate all of the following:
1. (1) The ability to repay the loan.
2. (2) The availability of adequate collateral to secure the loan.
3. (3) That the loaned funds will be used for purposes consistent with subdivision (a).
4. (4) Other information that the state board determines to be necessary.
(d) Any loan issued pursuant to this section shall be secured by adequate collateral. The term of the loan shall not exceed 10 years. The interest rate for the loan shall be set by the state board in guidelines adopted pursuant to subdivision (f).
(e) Projects using moneys that are loaned pursuant to this section shall not be subject to state contracting and procurement requirements to the extent necessary to take immediate action to protect public health and safety.
(f) The state board shall adopt guidelines for the allocation and administration of loans from the account. These guidelines shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(g) The state board may expend funds from the account to service loans, recover defaulted loan moneys, and protect the state’s position as a lender creditor.