Public capital facilities: public water or wastewater agencies: rate reduction bonds.

Existing law authorizes certain joint powers authorities, upon application by a local agency that owns and operates a publicly owned utility, defined to mean certain utilities furnishing water service to not less than 25,000 customers, to issue rate reduction bonds to finance utility projects, as defined, subject to certain requirements. Under existing law, these rate reduction bonds are secured by a pledge of utility project property, and the joint powers authority issuing the bonds may impose on, and collect from, customers of the publicly owned utility a utility project charge to finance the bonds, as provided. Existing law requires the California Pollution Control Financing Authority, among other things, to review each issuance of rate reduction bonds issued under these provisions and to submit an annual report to the Legislature containing specified information on its activities under these provisions for the preceding year. Existing law, after December 31, 2020, prohibits a joint powers authority from issuing rate reduction bonds under these provisions and no longer requires the California Pollution Control Financing Authority to submit an annual report to the Legislature. This bill would expand the definition of a publicly owned utility for these purposes to include certain utilities furnishing wastewater service to not less than 25,000 customers and would authorize an authority to issue rate reduction bonds to finance or refinance water or wastewater utility projects, as specified. The bill would extend the requirement that the California Pollution Control Financing Authority submit an annual report to the Legislature indefinitely and the authority to issue rate reduction bonds under these provisions until December 31, 2026. The bill would eliminate specified duties of the California Pollution Control Financing Authority if the determinations of the local agency applying for financing or refinancing of a utility project are subject to review by a ratepayer advocate or similar entity.