WAT §13477.6: (a) The State Water Pollution Control Revolving Fund Small Community Grant Fund is hereby created in the State Treasury.

(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. (3) Any moneys deposited pursuant to Section 79723. (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) The charge authorized by this subdivision may be applied at any time during the term of the financing, and, once applied, shall remain unchanged unless the board determines that the application of the charge is any of the following: (A) No longer consistent with federal requirements regarding the fund. (B) No longer necessary. (C) Negatively affecting the board’s ability to fund projects that support its water quality goals. (3) The charge shall not increase the financing repayment amount as set forth in the terms and conditions imposed pursuant to this chapter. (4) If the board ceases collecting the charge before the financing repayment is complete, the board shall replace the charge with an identical interest rate. (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 wastewater projects described in subdivision (c) of Section 1383 of Title 33 of the United States Code that serve small communities as defined in subdivision (a) of Section 30925 of the Public Resources Code. The board shall expend moneys appropriated from the grant fund within four years from the date of encumbrance. (2) For the purpose of approving grants, the board shall give priority to projects that serve severely disadvantaged communities. (3) In addition to the uses set forth in paragraph (1), moneys deposited in the grant fund pursuant to Section 79723, upon appropriation by the Legislature to the board, may be expended for technical assistance as authorized by Section 79725.