The Cleanup and Abatement Account (CAA) was created by Water Code Sections 13440-13443 to provide grants for the cleanup or abatement of a condition of pollution when there are no viable responsible parties available to undertake the work. Water code section 13442 authorizes the State Water Board to utilize CAA funds to address an urgent drinking water need. This includes needs due to drought, contamination, or other eligible emergencies. The CAA is funded by various monies including those: appropriated by the Legislature; collected as part of criminal penalties or civil proceedings brought pursuant to Division 7 of the Water Code; collected or recovered by the State Water Board or a Regional Water Quality Control Board (Regional Water Board) under Chapter 6.7 of Division 20 of the Health and Safety Code; and repaid by loan recipients, including principal, interest, and fees. In some instances, a court judgment or settlement agreement specifies how collected funds are to be spent (e.g., a specific cleanup, investigation, or supplemental environmental project [SEP]). Those funds are typically set aside in the CAA for that identified purpose, consistent with statutes governing uses of the CAA. After accounting for these needs and other prior encumbrances, remaining CAA funds may be utilized to fund: (1) projects that clean up and/or abate the effects of a waste on waters of the State, or (2) projects that address urgent drinking water needs.
